Elective Surgery Out Of Reach For Most NZers

6 January 2009
News release

Elective Surgery Out Of Reach For Most New Zealanders

Nearly three quarters of all New Zealand adults (73%) would not be able to self fund imminent elective surgery costing $5,000 or more, according to research from the Southern Cross Medical Care Society.

The survey reveals that more than half (57%) of New Zealanders would be forced to rely on loans from financial institutions, something that is far from guaranteed in today’s tight credit market. A further 16% would have to borrow the money from family or friends.

While 24% could rely on health insurance and a further 28% on savings, many of these would only be able to partially fund the surgery and would still rely on some level of borrowing.

Nearly one in four New Zealanders (23%) simply couldn’t fund it at all and would have to rely solely on the public system.

Southern Cross Healthcare Group Chief Executive, Dr. Ian McPherson says the survey highlights the need for more New Zealanders to take greater personal responsibility for their healthcare needs.

“Southern Cross is proud of, and supportive of, New Zealand’s public health system. It performs an excellent job in often challenging circumstances – particularly in areas such as acute, primary and mental health – but elective surgery lists can and do come under pressure,” he says.

“If more New Zealanders took personal responsibility for their healthcare needs, they wouldn’t be faced with having to borrow large sums of money or waiting months for important surgery as many do today.

“For those who don’t want traditional health insurance but still want to provide for everyday healthcare spending, as well as funding private treatment, there are other options, such as dedicated savings or health management accounts.

“It’s a reality that medical inflation will continue to climb. Currently, over $12 billion is spent by the Government to fund public health services and more is always needed. New Zealanders, encouraged by governments of the future, will need to save extra pennies for their health care – just like we have to for retirement.

Various ways New Zealanders would fund imminent elective surgery
Savings 28%
Health insurance 24%
Couldn’t fund it 23%
Bank loan 19%
Credit card 16%
Borrow from friends/family 16%
Personal finance 14%
Extend mortgage 8%
Don’t know 5%

Some average costs for elective surgeries
Cardiac bypass (heart surgery) $30,000-$40,000
Valve replacement (heart surgery) $33,000 - $50,000
Angioplasty – with 2 stents (heart surgery) $18,000 - $20,000
Laparoscopic hysterectomy (surgery) $8,000 - $11,000
Prostate brachytherapy (cancer surgery) $20,000-$30,000
Radical mastectomy (breast cancer surgery) $4,000-$9,000
Total hip replacement (surgery) $15,000-$22,000
Total knee replacement (surgery) $15,000-$22,000
Cataract removal (eye surgery) $3,500-$4,000
Endoscopic (sinus surgery) $6,400-$18,000
Varicose veins (both legs) $6,000-$9,000

- ends -

1. The survey of 1492 people aged 20+ was conducted by TNS Conversa in October 2008.
2. Average elective surgery figures supplied by the Health Funds Association of New Zealand (HFANZ)

About Southern Cross Healthcare:
Southern Cross Healthcare is comprised of two organisations that focus on the health sector in New Zealand:
• One organisation, the first created, is the Southern Cross Medical Care Society with over 840,000 members. It is a not for profit Friendly Society that focuses on delivering health insurance services for both individual members and group schemes.
• The other organisation is the Southern Cross Health Trust. The Trust is the sole shareholder of two subsidiaries: Southern Cross Travel Insurance and Southern Cross Hospitals.

ENDS

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