Health system reform roadmap - Direction setting and funding

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

Primary and Community Care future directions and localities framework agreed 

Responsible organisation: Manatū Hauora

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 (health 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, and 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 

Responsible organisation: Manatū Hauora

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 The Pae Ora (Healthy Futures) Act 2022 2022).

What has been achieved 

Development and publication of the strategies

More information 

Government Policy Statement (GPS) and Budget 24 completed 

Responsible organisation: Manatū Hauora, Te Whatu Ora

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.

What has been achieved 

Budget 2024 will be completed.  This will include the Investment Strategy and the GPS

More information 

Te Pae Tata 2024 completed

Responsible organisation: Te Whatu Ora 

Context

The Pae Ora (Healthy Futures) Act 2022 mandates Te Pae Tata (NZ 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.

What has been 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

Responsible organisation: Te Whatu Ora

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 has been achieved 

Every region will have an approved regional health service plan ready to be implemented.

More information 

Three-year funding agreed from Budget 24

Responsible organisation: Manatū Hauora

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 has been 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

Responsible organisation: DPMC, Manatū Hauora, Te Whatu Ora

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 Te Whatu Ora, Te Aka Whai Ora and reset the role of Manatū Hauora. 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 

Settings agreed to enable the health workforce meet objectives of Pae Ora

Responsible organisation: Manatū Hauora

Context

Manatū Hauora | the Ministry of Health has developed the Health Workforce Strategic Framework to guide health system settings and ensure Aotearoa 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 


Horizon 2 – Financial year 2024-2027

Health of Disabled People strategy refreshed

Responsible organisation: Manatū Hauora

Context

The strategy for Tāngata Whaikaha needs to be refreshed to better reflect and embed the voice of Tāngata Whaikaha within the health system.

What has been achieved 

Refreshed strategies are agreed by government. 

More information 

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