On this page you'll find information outlining the system achievements for direction setting and funding as part of the health system reform implementation roadmap.
Horizon 1 – Financial year 2022-2024
- Government Policy Statement (GPS) and Budget 2024
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Responsible organisation: GPS and Budget 2024 – Ministry of Health; Te Pae Tata – Health New Zealand
Context
The Pae Ora (Healthy Futures) Act 2022 mandates developing a suite of health strategies and the GPS, and the formal relationship between these documents and with Te Pae Tata and the Budget. Cabinet intent is for a clearer “line of sight” between these documents to enable future direction setting.
Progress update
Work on the Government Policy Statement on Health (GPS) 2024-2027 and Budget 2024 progressed in Q2 2023/24, with the Budget due for submission in Q3 2023/24, to be announced by the Minister of Finance on 30 May 2024. Progress on the GPS was behind initial expectations for December 2023 but is now on track to be released in June 2024.
What will be achieved
Budget 2024 will be completed. This will include the Investment Strategy and the GPS.
Health New Zealand: Completion of Te Pae Tata.
More information
- Budget 2024 Joint Ministers Conditions regarding Te Pae Tata 2024-2027 completed
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Responsible organisation: Health New Zealand
Context
The Pae Ora (Healthy Futures) Act 2022 mandates Te Pae Tata (the New Zealand Health Plan), and the formal relationship between this document and the health strategies and GPS as well as the Budget. Cabinets intent is for a clearer “line of sight” between these documents to enable future direction setting.
Progress update
The New Zealand Health Plan 2024-2027 progressed in Q2 2023/24, with financial annexes submitted to Treasury in January 2024. While this financial information is more than that previously available, the information provided was in less depth than Treasury’s expectations. Whilst feasible to complete this by June 2024 it may be challenging to undergo Ministerial engagement and auditing ahead of Cabinet consideration, within the remaining time available.
What will be achieved
A fully costed draft presented to Ministers, that includes audited financial statements, hospital and specialist services spending reviews, investment plans, benefits realisation framework and an outcomes framework.
- Regional health service plans completed
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Responsible organisation: Health New Zealand
Context
The purpose of Regional Integration Teams is to deliver integrated work programmes to achieve appropriate outcomes for the priority populations within each region. A planning framework is needed to support the development of regional health service plans and programmes that contribute to equity through access to services, levels of service, improved health outcomes for Māori and other population groups.
What will be achieved
Every region will have an approved regional health service plan ready to be implemented.
More information
- Three-year funding agreed from Budget 24
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Responsible organisation: Ministry of Health
Context
A multi-year funding arrangement for Vote Health from Budget 2024 will enable the reset of budget management settings to incentivise strategic decision-making on health expenditure and the sustainable management of cost growth.
What will be achieved
Health system settings and accountability mechanisms are in place ahead of Budget 24 and have been approved by Cabinet.
Achieved 2022-23
- Reform Health and Disability policy Pae Ora legislation, Interim Health Plan and Budget 2022 completed
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Responsible organisation: DPMC, Ministry of Health, Health New Zealand
Context
In March 2021, Cabinet agreed to the vision of the new health system. To achieve this vision, changes to legislation, the development of planning instruments (including an interim Government Policy Statement and New Zealand Health Plan), and changes to funding and financial flows were required.
What has been achieved
The Pae Ora (Healthy Futures) Act 2022 is the underpinning legislation for the health reforms. It came into effect on 1 July 2022 and repealed and replaced the previous New Zealand Public Health and Disability Act 2000. The Act disestablished the District Health Boards, established Health New Zealand, Te Aka Whai Ora and reset the role of the Ministry of Health. The Act also introduced further mechanisms for the improvement of hauora Māori, such as the establishment of Iwi Māori Partnership Boards and the Hauora Māori Advisory Committee.
In October 2021, Cabinet agreed to provide a transitional funding package in Budget 2022 that supported the health sector through to Budget 2024. This was the first budget to take a multi-year funding approach to Vote Health and aimed to provide certainty for the health sector during this two-year period while the reforms were being embedded (SWC-21-MIN-0157).
The first interim New Zealand Health Plan was released in October 2022.
More information
- Pae Ora (Healthy Futures) Act 2022 - legislation.govt.nz
- Vote Health | Ministry of Health NZ
- March 2021 Cabinet Paper - DPMC
- Cabinet Minute SWC-21-MIN-0157: Health and Disability System Reform: National Budget and Funding Settings - 20 October 2021 - Budget 2022 Information Release (treasury.govt.nz)
- Te Pae Tata Interim New Zealand Health Plan 2022 – Health New Zealand
- Settings agreed to enable the health workforce meet objectives of Pae Ora
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Responsible organisation: Ministry of Health
Context
The Ministry of Health has developed the Health Workforce Strategic Framework to guide health system settings and ensure New Zealand has a sustainable, representative and responsive health workforce that can meet the future needs of people and whānau.
What has been achieved
The strategic framework sets out the priority issues for Aotearoa’s health workforce, including the need to tackle structural and systemic barriers, which result in Māori being excluded from and/or prevented from achieving in the health sector. It also sets out the aspirations for the health workforce.
More information
- Primary and Community Care future directions and localities framework agreed
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Responsible organisation: Ministry of Health
Context
Primary and community healthcare providers cover a broad range of services and play a key role in preventing illness, early intervention and reducing the impact of long-term conditions. The majority of New Zealanders access the health system through their local primary and community healthcare services, so designing systems with a focus on delivering high quality and equitable care to local communities is critical to ensuring financial sustainability and improving health outcomes for communities.
What has been achieved
- Agreement that the primary and community care health care system must meet the expectations set by the heat sector principles in the Pae Ora (Healthy Futures) Act 2022.
- Agreement that primary and community healthcare in Aotearoa will be underpinned by the following health sector principles within the reformed health system: comprehensive and accessible; continuous; coordinated; individual and whānau-centred; fit for purpose; and continually improving.
- Agreement to a set of policy parameters that underpin the development of localities and locality plans and support localities to respond to local needs and deliver on the intent of reform. A framework will guide how locality planning will work within local, regional, and national contexts.
More information
- Pae Ora Health Strategies approved
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Responsible organisation: Ministry of Health
Context
The Pae Ora (Healthy Futures) Act 2022 mandates development of the NZ Health Strategy and the five population health strategies. These strategies support the next phase of the reform (following initial system changes set out in Pae Ora (Healthy Futures) Act 2022.
What has been achieved
Development and publication of the strategies
More information
- Anti-racism framework Ao Mai Te Rā developed
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Responsible organsation: Ministry of Health
What has been achieved
Anti-racism framework Ao Mai Te Rā published.
More information
Horizon 2 – Financial year 2024-2027
- Health of Disabled People strategy refreshed
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Responsible organisation: Ministry of Health
Context
Finalisation of the Health of Disabled People Strategy is required to ensure the voice of disabled people and Tāngata Whaikaha are clearly visible in the strategy and that it is aligned with emerging strategic directions being set by Whaikaha.
What will be achieved
The Health of Disabled People Strategy is confirmed by Cabinet in its final form and published.
More information
- He Korowai Oranga: Māori Health Strategy refreshed
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Responsible organisation: Ministry of Health
Context
To develop a new 10-year vision for Māori health.
What will be achieved
A full review and refresh of He Korowai Oranga accompanied by a refreshed action plan.
More information
- Anti-racism framework Ao Mai Te Rā implemented
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Responsible organisation: Ministry of Health
Context
To understand, uncover and actively oppose racism in the system and strategise for change.
What will be achieved
Complete implementation of Ao Mai te Rā to take steps towards reducing racism and embed anti-racism models and solutions across the sector.