$2.1b for health

20 May 2010

Community pharmacy is hoping DHBs will be able to use some of the $2.1 billion extra in Vote Health to improve funding for pharmacy services.

The allocation over the next four years – including an extra $512m in 2010/11, is being termed as an investment in health priorities. But on a closer look, $1.95b of it is towards operating costs over the next four years, ie, just under $500m annually.

That is $250m less a year than the increase in last year's budget. Another $186m over four years have been reprioritised from within the existing health budget after cutting administrative costs.

However, disability services are getting the biggest boost with $99.8m and elective surgery with $59.5m.

Health Minister Tony Ryall says this is a significant funding increase in the light of the continuing difficult economic situation.

“Over the next four years, we have increased funding for mental health services by $40m, and there has also been some reprioritisation within mental health. In addition, it is expected DHBs will allocate $174m to mental heallth..."

Another $46m has been earmarked for health screening over those years, of which bowel cancer screening programme is given $1.2m in its first year from July, rising to $7.6m a year.

Funding for medicines will increase by $80m over the next four years, with $40m of this to be met from DHBs’ budgets, and an extra $40m being invested by the government.

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