2 Jul 2024

Doctors warn the government's latest capitation offer is inadequate

From Nine To Noon, 9:05 am on 2 July 2024

Family doctors say the government's latest funding offer is inadequate, and will see more GP practices shut down.

The government has offered a four percent increase on the amount general practice gets paid per patient, a number which GP leaders say is too low to meet cost pressures.

The so-called capitation system has long been dismissed by the sector as inadequate, citing a 2022 report by Sapere Research Group that asserts that revenue is below the true cost of care.

And if benchmarks such as age, sex, ethnicity , deprivation and morbidity were factored in, most practices would need a 10 to 20 percent increase in funding.

The capitation model currently only accounts for the age and sex enrolled patients.

Health New Zealand, Te Whatu Ora says GPs can fill the funding gap by charging patients more for appointments.

But General Practice NZ say they won't accept the four per cent capitation offer.

A 20 day consultation period is underway.

Dr Bryan Betty is the chair of General Practice NZ, and he speaks to Kathryn about the desperate financial state many clinics are in.

Dr Bryan Betty of Porirua Union and Community Health.

Dr Bryan Betty of Porirua Union and Community Health. Photo: RNZ / Karen Brown