New Zealanders hugely concerned with Public Health

16 September 2007

Major study finds New Zealanders hugely concerned with Public Health Service

Major study finds New Zealanders hugely concerned with Public Health Service
New Zealanders would support radical changes – including a ‘Cullen Fund’ type account for health care and letting the private sector tender for more public work – to overcome what they see as an inefficient and worsening health system, research released today shows.

There is also support for extending the Accident Compensation Scheme to cover catastrophic illnesses like cancer.

Two in three New Zealanders believe the public health system is inefficient and almost half of all New Zealanders believe the system has got worse in the past five years, though not for them themselves and their families, according to the research undertaken by ShapeNZ for the New Zealand Business Council for Sustainable Development.

The research indicates that when it comes to health care, New Zealanders are most worried about waiting lists, the cost of visiting a doctor and non-surgical cancer care like chemotherapy and radiotherapy.
The majority of respondents say they would support major solutions, including:

- A fund similar to the New Zealand Superannuation (“Cullen”) Fund, to put money aside to cover the increased costs of health care for an aging population. (68% support, and still strong at 62% if this delays a personal tax cut)

- Extending the Accident Compensation Scheme to cover catastrophic illness, such as cancer, where the treatment is long term and the person being treated may be unable to work (58% support)

- Allowing public hospitals and private health service providers to compete for additional Government money to provide hospital services, like operations and other procedures (51% support)

- Increasing the medical professional workforce by providing more training and increasing pay, but bonding graduates to serve a year here for each year spent in training (62% support)

Business Council Chief Executive Peter Neilson says it is obvious to close observers of the health system that New Zealand needs to address its long-term health funding issues.

“These types of solutions need to be looked at to ensure that we maintain an effective health service in New Zealand. We need to look beyond simply putting more money into a system that is unable to deliver shorter waiting lists and better value for money,” Mr Neilson says.

The Government now spends $11.6 billion a year on health and can’t afford health care long term, at current spending growth rates, driven by new technology, extended services and an ageing population, without substantial tax rises. In today’s dollars, the Government will need to devote more than $21 billion to health by 2050. That is 12% of gross domestic product, compared with 6.7% today.

Many of those surveyed indicated there were unaware of the major problem over funding their future health care, some describing it as “scary”. The survey shows 90% of New Zealanders believe public hospitals should be free and 59% don’t agree the Government has to restrict the number of services available, even though both public and insurance-based health systems now do that.

“Falling back on outdated ideologies whether of the left or the right won’t address all our issues. Without competition in provision, it’s unlikely we’ll improve the efficiency of the system and private health insurance won’t fix it because it will be unaffordable for those with existing health conditions,” Mr Neilson says.

The findings of the survey will be discussed with the Minister of Finance at the Business Council’s second annual Business Budget Summit at Wellington on November 1. The summit assembles 80 chief executives with Ministers to look for long term practicable solutions to major issues facing the country. This year it looks at how to fund health, close the skills gap and for a long term path to personal tax cuts.

Several of the summit’s recommendations last year were reflected in this year’s Budget, including ones covering retirement savings, sustainable procurement by Government agencies and tax reviews to attract and retain high wealth individuals.

The full health survey results and commentary can be found at http://www.budgetsummit.org.nz

ENDS

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