The Nelson Tasman Hospice cares for more than 155 patients at any one time. Photo: 123RF
Hospices are increasingly short of cash, and soon will not be able to raise enough money to meet the demands required of them, according to a new report.
The report, released Wednesday morning, was commissioned by five hospices on behalf of the 28 publicly contracted entities.
It found, due to a combination of growing demand and rising costs, total expenditure would exceed revenues from government and community sources in less than 12 months.
Last year, it cost $226 million to run hospice services, but the government only provided $114m. Hospices raised $112m from community donations, fundraising, and other sources, to break even.
Hospices had frequently been able to bridge the funding gap, but with the growing demand on bed space and more complex care required, this was no longer possible.
The report, undertaken by the consultancy firm Martin Jenkins, concludes that in the absence of government intervention, beds will soon close, referrals for space will have to be prioritised and care via telehealth will need to be more widespread.
Totara Hospice is one of the five that commissioned the report - and chief executive Tina McCafferty told Nine to Noon the trajectory was likely to continue.
"This report shows that hospices work tirelessly to meet need in their community, but their ability to meet need is going to be absolutely suppressed if the right balance of funding isn't struck."
She said hospices were a smart investment which could be "part of a solution for a health system that's on the brink".
The health minister has been approached for comment.
There was a $9.4m shortfall in 2021, projected to be $200m by 2043.
Hospice NZ chief executive Wayne Naylor told Nine to Noon the population was set to continue rising, meaning the number of people dying would also increase.
There was an expected increase of 50 percent in people who would benefit from hospice care in the next 20 years.
He said to meet future demand to the level it was now would require an enormous increase in funding.
"We've know that for quite some time, and our government has not responded."
Health Minister Simeon Brown said he had not yet had a chance to delve into the report.
But he said he had the utmost respect and admiration for those working in hospice care, and related work was underway.
"I am aware that Health New Zealand has a National Palliative Care Work Programme, and that as part of this programme the agency is working with hospices to develop a contracting and funding framework."
He said he would be receiving advice from Health New Zealand following that work.
