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, which totals just over $16.142 billion in 2016/17. Other significant funding sources include the Accident Compensation Corporation (ACC), other government agencies, 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.
Ministry of Health managed funding
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 2016/17, the Ministry will directly purchase $2.879 billion worth of health and disability services and supports.
About 1 percent (almost $196 million in 2016/17) of Vote Health funding is spent on running the Ministry, which supports, oversees, governs, and develops the wider health and disability sector.