New Zealand’s health and disability system is mainly funded from general taxation. This page describes where the money is spent.
Vote Health funding allocation
The health system’s funding comes mainly from Vote Health, totalling just over $14.655 billion in 2013/14. Other significant funding sources include other government agencies (most notably Accident Compensation Corporation – ACC), local government, and private sources such as insurance and out-of-pocket payments.
The Ministry of Health allocates more than three-quarters of the public funds it manages through Vote Health to DHBs, who use this funding to plan, purchase and provide health services, including public hospitals and the majority of public health services, within their areas.
Most of the remaining public funding provided to the Ministry (approximately 19 percent) is used to fund important national services, such as disability support services, public health services, specific screening programmes, mental health services, elective services, Well Child and primary maternity services, Māori health services and postgraduate clinical education and training. In 2013/14, the Ministry will directly purchase $2.84 billion worth of health and disability services.
About 1.3 percent (about $191 million in 2013/14) of Vote Health funding is spent on running the Ministry which supports the wider health sector.