Health NZ's Near $1B Deficit 'Worse Than Expected,' Says Health Minister Shane Reti Health Minister Dr. Shane Reti health minister acknowledged that Health New Zealand's financial deficit for the year ending June has exceeded expectations. A preliminary assessment revealed a staggering $934 million deficit, falling almost $1 billion short of the anticipated $54 million surplus. The recently released quarterly performance report for June highlights several factors contributing to the shortfall, including: . $529 million of pay equity funding not being received . A workforce exceeding budget by 4,400 staff, costing $406 million . $193 million lost to expired COVID-19 stock . $172 million spent on Holidays Act remediation . $40 million less in projected savings Dr. Reti admitted the results were "worse than expected," attributing some of the financial strain to mismanagement while noting that the pay equity funding will be included in the current year's budget. Read more at, https://lnkd.in/dmt5vqnz | Ministry of Health New Zealand | New Zealand Herald #heatheconomy #healthcare #economydeficit #government #system #healthnews #thehealthcolossus
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What are the implications of the Spring budget for the NHS? The Chancellor yesterday announced a £6bn boost for the NHS, which health leaders were quick to point out would 'scarcely touch the sides'. Context for such a statement is seen by looking at UK health spending relative to other comparable countries. As shown here, the UK spends less per person on healthcare than almost all other advanced economies, excluding Japan and Italy. In several cases this gap has widened in the last two years, including relative to France and Germany against whom our spending did not look so out of step as recently as 2021. Some may point out that spending on health has increased significantly over the years in the UK. However, this is the norm for advanced economies and the real question is - has spending increased by enough to account for population growth, ageing populations with complex healthcare needs, and the rising costs of treatments including drug prices? In the case of the UK, the answer to this question is a resounding 'no'. Analysis published by the BMA last year showed a cumulative underspend of £322bn in UK health since 2009/10. Against such a figure, you can understand why yesterday's £6bn announcement was seen as yet another sticking plaster. The economic impact of this is being seen in a range of areas, including the UK's growing proportion of sick and inactive workers. As pointed out in a recent post by my colleague James Kirkup, the burden of this is falling on employers and more pressure needs placed on the government to ensure the UK's shrinking workforce is active and able. With the NHS now the No.1 concern for the UK public - as per the latest Ipsos Issues Index - both Labour and the Conservatives will need to have a clear message ahead of the upcoming election on how to get the health service and the UK's workforce back on its feet. #NHS #politics #springbudget2024
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The latest directive from Health NZ Te Whatu Ora in line with Government policies on budget cuts is of serious concern. Health services and staff remain under pressure. We are just heading into winter. Not to replace staff who are unwell places patients and staff at risk. The vacancy policy is draconian. Patient acuity is increasing as are the social and other complexities which increase patient and whanau need. This is the latest in a litany of Govt policies that strike at the heart of health services provision with a concerning focus on financial imperatives with little regard for quality patient care.
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Today’s Autumn #Budget outlines the government’s spending priorities for the coming year, including what funding will be available to support the government’s ambitions for the health service, and to meet its three strategic aims of moving from hospital to community, from analogue to digital, and from sickness to prevention. It announced a further £22.6bn in the day-to-day health budget and £3.1bn increase in capital budget for the NHS - the largest increase since 2010 outside of COVID. The Budget also sets out the funding available to encourage the UK Life Sciences industry and how Life Sciences companies can support the health and wealth of the UK. 💡 Our latest snapshot outlines the key factors impacting the health sector. Read more below ⬇️ https://lnkd.in/eCyHezNS #NHS #Budget2024 #Labour
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While there was some welcome news in yesterdays #budget2024 with extra funding promised for the #NHS, the increase in #employer NI contributions may curtail salary growth. I believe this will continue to make #employeebenefits more valuable to #organisations and their staff. Employee benefits packages are one of the most effective ways that employers can deliver financial support to their workforce and support with talent attraction and retention. It's important we continue to review our #totalreward strategies to ensure we are making the most of the benefits and support on offer. #humanresources #financialwellbeing #wellbeing
Following the government’s Autumn budget yesterday, our CEO Paul Schreier said: “The government has committed to deliver urgent change for healthcare across the country, but today’s budget leaves many questions unanswered. Parts of the health system including the health and protection sectors as well as the role of employers continue to be overlooked and their potential left unrealised.” Read Paul’s full response here: https://lnkd.in/eNYzdDrp
Autumn Budget 2024 response
simplyhealth.co.uk
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Health New Zealand This article says that: “Health NZ first reported a deteriorating financial position to me in March 2024, despite earlier repeated assurances by the organisation that it was on target to make savings in 2023/24. “In the months since, the situation has worsened. Health NZ is currently overspending at the rate of approximately $130 million a month." If these statements are true they are verifyable. There will be reports from Health New Zealand on file. Plan, act, review, report, act. This is the fundamental cycle of public sector management. For such a dramatic change in circumstances to have occurred suggests either they were wrong up until March, or there has been a massive collapse in financial management since March. The former is more likely. Health sector spending comprises two parts, controllable spending and uncontrollable spending. Astute management focuses on controlling the controllable. In a hospital or related service the physical control is staffing. Budgets are based on an approved ‘staffing establishment’. Management’s financial delegation is limited to filling jobs in the ‘staffing establishment’ which are funded in the budget and still necessary. This is how public sector departments ensure they don’t overspend operationally. The article says that: “…….one example was that between March 2018 and March 2024, back-office staff numbers, which formerly sat at district health board level, grew by around 2500.” If this is true it will be verifiable and shows that the crisis was deeply embedded. It even predates the establishment of Health New Zealand. What are the other major causes of the budget blow out? The reporting cycle was not operating. Why not? https://lnkd.in/d7aW58st
'Turnaround' job: Health NZ board sacked, commissioner appointed
1news.co.nz
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Past President of the New Zealand Institute of Medical Laboratory Science (NZIMLS), health advocate, passionate about equitable and sustainable health services.
'Within chaos there is opportunity' As a professional leader who has been in the middle of the unfolding health crisis in NZ over the past few years, none of this should be a surprise to anyone. Our professional leadership across health has submitted years of position papers and statements wanting genuine governance, clinical leadership and effective transformational funding changes to future proof what those on the frontline have been fighting against for years. As I have often said we have been gifted the legislative intent but never had the leadership with autonomy and courage to break the status quo. We are all very aware publicly funded healthcare needs to be fully transparent and accountable at every level and with such a burgeoning debt quickly transformed. I look at this current directive as an opportunity for strong leadership and intent within the fiscal and operational constraints we clearly have. The Minister's letter to the commissioner is clear on the significant operational clinical leadership influence and direction needed. This is the reality we must all now face, there are no pots of surplus cash just a clear directive to do better with what we have and come up with national funded systems delivered regionally that best operate within these constraints. Thoughts of gradure and excess simply need shelved. But this is when the real operational and buisiness innovators and leaders step into the room. In my opinion this simply has not been allowed to happen in the past. Let's see what Lester can do to change that.... 'Turnaround' job: Health NZ board sacked, commissioner appointed https://lnkd.in/dDY8YJvx
'Turnaround' job: Health NZ board sacked, commissioner appointed
1news.co.nz
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The 2024 budget increased funding for the National Health Mission by 14%, but the total health budget rose by only 0.3%, maintaining almost the same GDP percentage as the previous year. Furthermore, the goods and services tax and increased devolution have made states more dependent on Union government transfers. According to the Centre for Social and Economic Progress, these transfers now include more tied funds under centrally sponsored schemes, but the portion allocated to health has diminished.This reduction has limited states' ability to expand their health budgets, resulting in poor infrastructure and growing vacancies in frontline health services, forcing individuals to seek more expensive private healthcare options. An article by Prachi Salve. https://lnkd.in/djKvRh2Z #HealthBudget #HealthcareFunding #NationalHealthMission #UnionBudget2024 #HealthInfrastructure #PublicHealthCrisis #Health #HealthPolicy #PrivateHealthcare #HealthCare #Budget2024 #IndiaEconomy #PublicPolicy #Indiaspend
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What's the common thread between Ahmed, a 40-year-old embroidery worker from UP dying of liver cancer, and the 14th Finance Commission & GST? The 14th Finance Commission increased states' share of union taxes but also their dependency on union funds. In 2017, the introduction of GST reduced states' ability to generate their own tax revenues, limiting their spending power and ability to hire medical professionals. This has pushed people like Ahmed into costly private care, and later into overcrowded public hospitals like AIIMS Delhi, where he died waiting for care that never came. My new story
The 2024 budget increased funding for the National Health Mission by 14%, but the total health budget rose by only 0.3%, maintaining almost the same GDP percentage as the previous year. Furthermore, the goods and services tax and increased devolution have made states more dependent on Union government transfers. According to the Centre for Social and Economic Progress, these transfers now include more tied funds under centrally sponsored schemes, but the portion allocated to health has diminished.This reduction has limited states' ability to expand their health budgets, resulting in poor infrastructure and growing vacancies in frontline health services, forcing individuals to seek more expensive private healthcare options. An article by Prachi Salve. https://lnkd.in/djKvRh2Z #HealthBudget #HealthcareFunding #NationalHealthMission #UnionBudget2024 #HealthInfrastructure #PublicHealthCrisis #Health #HealthPolicy #PrivateHealthcare #HealthCare #Budget2024 #IndiaEconomy #PublicPolicy #Indiaspend
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Multiple Award Winning Health Insurance Specialist. Award-Winning Private Medical Insurance from WPA for individuals, families and companies.
Health spending £5bn less than government planned - BBC News The government is spending £5.5bn less on health in England than it suggested it would be at this stage, the Institute for Fiscal Studies says. Plans set out in the 2019 election campaign indicated the budget would increase by 3.3% a year above inflation during this Parliament, the IFS said. But despite extra being put in to cover the high inflation seen, spending had risen by only 2.7% a year on average. Whichever party gets in at the next election, neither are keen to set out their spending plans for our health service. The NHS has been through its toughest financial year ever as budgets and services are stretched to the limit in the face of mounting demand and pressure. It will be interesting to see whether the next party will give up turning the health service around. Only time will tell. [email protected] 07954 402863 #healthinsurance #privatemedical #health
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Significant allocations towards employment and healthcare in the #UnionBudget2024 are expected to create more job opportunities and enhance public health infrastructure. As these measures take effect, a positive impact is anticipated in the coming months, leading to sustainable growth and development. #BudgetWithKhaitanCo #Budget2024 #KhaitanCo
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