Welcome to our world - NZHHA

3 June 2011

Home based support and mental health providers can only manage a wry sigh at hearing that hospital managers from throughout the country are not prepared to sign contracts with ACC because the contract prices vary from nothing to a mere 1.3 percent. The Southern DHB is intending to meet with ACC to renegotiate their contract situation.

“If the situation wasn't so desperate for our community providers we would smile at the irony of hearing Southern DHB complain about the lack of increase for one year” says Julie Haggie, CEO of the NZ Home Health Association.

“That DHB has increased its rates to home and community support services by a pitiful 1 percent since 2008! And the same applies to many other DHBs around the country, despite the fact that they have received funding from the government every year to address cost pressures for all services. It appears that sustainability of services outside the hospital door just isn't a consideration."

For the 2011-12 year the government is giving all DHBs 1.72 percent to allow for additional cost pressures. This year a few of the 20 DHBs are passing on that increase to organisations that have contracts to provide community services.

"Those few understand the serious impact that general inflation, petrol price increases, additional service requirements and the minimum wage increase have had on community organisations. Other DHBs though have gone two and now it seems three years without providing any increase."

Marion Blake, CEO of Platform Trust agrees, as DHBs across New Zealand have applied the same scattergun approach to passing on contract increases to mental health and addiction providers.

"It is hard to understand the reasoning behind the decisions that are being made by some Boards who are keeping the money the Crown has given them instead of passing it on to community providers," she says.

Home health, mental health and addiction organisations play a vital role in supporting people to live in their own homes, and in reducing the use of residential and hospital care, say Blake and Haggie.

"The government needs and wants to move care closer to the community. But the DHBs place secondary care at the top of their priority list. They talk about providers becoming more efficient and that fewer providers will make savings – but those beliefs don't have a sound basis. Meanwhile key community services are being driven into the ground."

ENDS

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