Budget Summary

25 May 2012
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A quick rundown of what was in yesterday’s budget for health.

Vote Health funding appropriation is $14.12 billion this year, up from $13.95 billion last year.

The Minister of Health has announced $435 million extra health spending this year, with $320 million of that to meet annual DHB cost pressures and population demand.

The other new spending announced for this financial year includes:

    • $12 million for increasing national elective services.
    • $33.2 million for increasing disability home support, residential care, and other services.
    • $6.5 million for improved cancer services, including 40 dedicated cancer nurse co-ordinators.
    • $5 million for the Smokefree 2025 innovation fund for programmes to help discourage smoking and encourage quitting.
    • $4 million for improved diagnostic services access.
    • $1.6 million for PlunketLine and well child services.
    • $1.5 million to boost telephone health advice.
    • $2 million for strengthening communities to prevent suicide.
    • $9.8 million for Drivers of Crime – alcohol and drug assessments and interventions in prison.
    • $1.5 million for new Pacific Innovation Fund to help improve Pasifika health.

This is to be partially funded by:

  • Increasing pharmacy prescription charges to $5 ($20 million this year and $40 million in future years).
  • Aged care savings of $3.4 million this year (growing to $10.4 million in two years’ time) by increasing • the asset threshold for residential care subsidy.
  • A further $27 million this year in re-prioritised savings and underspends, including $11.7 million in public health service purchasing.

Vote Health funding areas going up

DHB funded health services up from $10.5 billion to $10.82 billion (76.6% of Vote Health funding).

Public Health Service purchasing – $476 million (3.4% of the vote).

Vote Health funding areas staying static

Funding to Primary Health Care Strategy services at $176 million (1.2% of the vote).

Vote Health funding areas going down

DHB deficit support going down from $80 million to $65 million.

Ministry of Health funding going down from $205 million to $191 million.

Other Budget announcements

Youth mental health package of $18.3 million over four years, including adding nurses in all decile three schools ($900,000 from Vote Health in 2013/14) and mental health youth workers in secondary schools.

$600,000 in Vote Social Development funding for Youth One-Stop shops this year.