Summary
This report describes the 2014/15 Review of the Population-based Funding Formula (PBFF). The funding formula is a technical tool used to help equitably distribute the bulk of district health board funding according to the needs of each DHB’s population. The formula takes into account the number of people who live in each DHB catchment, their age, socio-economic status, ethnicity, and sex. It also has mechanisms to compensate DHBs who service rural communities and areas of high deprivation.
The funding covers a range of health services including primary care, hospital and community care, health of older people, and mental health.
The review recommended no structural changes to the overall model but proposed several changes, including to the rural adjuster to better reflect DHB population and geography.
In 2015/16 the PBFF distributed a total of $11.7 billion to DHBs. DHBs will not receive less funding as a result of the review.