Post-entry Funding Model: submissions and updates

Health Workforce New Zealand (HWNZ) consulted with the health and education sectors on a proposed investment approach to the post-entry funding model. This page includes an analysis of the submissions and answers to questions asked in some submissions.

On this page:


Submissions analysis

We received over 90 submissions on the consultation document Investing in New Zealand’s Future Health Workforce: Post-entry training of New Zealand’s future health workforce: Proposed investment approach (Word, 2 MB)

Early analysis of submissions shows:

  • there is strong support for a National Workforce Strategy to inform decisions about investing in the development of the health and disability workforce
  • there is strong support for transparent and robust processes for decision making about investing in the health workforce
  • there is a strong view from stakeholders that existing funding is inadequate
  • there are considerable concerns about the proposed process for disinvesting in current workforce developments and the risk of unintended consequences of any disinvestment
  • there is limited support for a contestable funding process with the majority of stakeholders preferring an approach that encourages cooperation rather than competition
  • non-medical stakeholders tend to support the review being inclusive of all HWNZ’s funding
  • modifications to the proposals and alternative solutions have been suggested and will be carefully considered.

We are continuing to analyse the submissions and plan to update this webpage weekly over the next month as our analysis progresses.

Questions and answers on the post-entry funding model

Review process

What is the time frame for analysing the submissions and informing the sector of the results?
We expect to complete the submissions analysis in July 2017. The results of that analysis, and information about the next steps are likely to be available in the coming weeks. In the meantime, regular updates will be added to this website.

When is a decision likely to be made on the proposed funding model?
A decision on the proposed funding model is likely to be made in the coming weeks. Whatever is decided, there will be more work needed before a detailed funding model is fully developed and ready to implement. Information about the next steps are likely to be available in the coming weeks. In the meantime, regular updates will be added to this website.

What would be the time frame for implementing a new funding model?
If the decision is to proceed, we do not expect to implement any substantive changes prior to the 2018/19 financial year or the 2019 academic year. This is because a lead-in time of at least 9 to 10 months is required to transition between the current and any new funding model.

Will there be further consultation across the sector and disciplines as further work to develop a funding model proceeds?
As work to develop either this or an alternate funding model is progressed there will be opportunities across the sector and disciplines to provide further feedback.

What is meant by post-entry?
Post-entry education/training, in the context of HWNZ’s funding, refers to post employment in the health sector that is post entry to the health workforce.

The funding

What proportion of HWNZ post-entry funding is allocated to different workforces?
HWNZ has $185 million available for post-entry education and training in the 2016/17 financial year. The table below shows the approximate distribution of HWNZ’s current funding. The distribution of the current funding is influenced by the history of the funding and how it has evolved over the years. We intend to publish further details on the history of HWNZ's funding in future updates to this website.

Health Workforce New Zealand (HWNZ) Distribution of Funding table
HWNZ service
2016/ 17
Budget ($)
Percentage
of funding
Medical (incl. GP) training 116,913,287 63%
Nursing 22,163,240 12%
Midwifery   5,260,560 3%
Allied health, science & technical professions 3,769,899 2%
Mental health and addictions  21,881,014 12%
Disability support services 3,675,000 2%
Māori and Pacific Support 3,125,000 2%
Voluntary Bonding Scheme 8,226,000 4%
Total HWNZ Budget 185,014,000 100%

It is worth noting that most of HWNZ’s funding goes to the trainee’s employer not the trainee.

For the majority of professions HWNZ tags funding provided to employers to particular trainees. However for most medical vocational training (except general practice and public health) the funding is not tagged to a particular individual throughout the course of their training.

Rather, HWNZ funding supports training positions within an approved training site (usually a DHB). Some training positions are supported by HWNZ funding and some are funded by DHBs. Individual medical registrars rotate around DHBs and HWNZ and non-HWNZ funded positions as they complete their training programme.

What proportion of funding would be contestable?
Until the submissions analysis is completed and a decision made on which funding model will be used, we are unable to answer this question. However in the December workshop, which was part of developing the proposal, HWNZ representatives had talked about approximately 10 percent being contestable in any one year.

What will happen with mandatory programmes such as PGY1 medical and Midwifery First Year of Practice?
Post-entry education/ training programmes that are mandatory and currently funded by HWNZ, such as postgraduate year 1 (PGY1) medical training and the Midwifery First Year of Practice programme will continue to be funded although the volumes may change to meet changes in supply.

If funding is contestable, could trainees lose funding before they have completed their course?
One of the principles articulated in appendix two of the consultation document is that current trainees would be supported for the duration of their planned training programme. HWNZ is committed to this principle.

Implementing a new funding model

Has a decision been made on which funding model will be used?
No, a decision has not yet been made. A decision on the proposed funding model is likely the coming weeks. Whatever is decided, there will be more work needed before a detailed funding model is fully developed and ready to implement. Information about the next steps are likely to be available in the coming weeks.

When is a decision likely to be made on the proposed funding model?
A decision on the proposed funding model is likely to be made in the coming weeks. Whatever is decided, there will be more work needed before a detailed funding model is fully developed and ready to implement. Information about the next steps are likely to be available in the coming weeks. In the meantime, regular updates will be added to this website.

What would be the time frame for implementing a new funding model?
If the decision is to proceed, we do not expect to implement any substantive changes prior to the 2018/19 financial year or the 2019 academic year. This is because a lead-in time of at least 9 to 10 months is required to transition between the current and any new funding model.

How would a change to the funding model affect those currently in training funded by HWNZ?
A change to the funding model will not adversely affect individuals already in a training programme. If their education/training is funded by HWNZ, we will honour our commitment to fund them for the duration of their planned training programme.

How would a change to the funding model affect education/training programmes currently funded by HWNZ?
Depending on the funding model that is implemented, education/training programmes that are funded at the time the new model is implemented may be affected by the changes. However, there will be a lead-in time to transition between the current and new funding models, and individual trainees will be assured of funding for the duration of their planned training programme.

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