The Association of Salaried Medical Specialists (ASMS) has launched a report, authored by Professors Tim Tenbensel and Paula Lorgelly from the University of Auckland. The report is available here.
It examines Aotearoa New Zealand’s historical health expenditure compared to 16 other countries. Key findings are:
- The Ministry of Health hasn’t submitted returns on health expenditure to the OECD since 2018. Aotearoa is the only country not submitting returns.
- Since 2019, the OECD has had to extrapolate Aotearoa New Zealand’s health expenditure, leading to overestimates of our health expenditure compared to other countries. This information has been used to brief Ministers and select committees on health spending and used in public communications.
- There was a sustained period from 2013 and leading up to the COVID-19 pandemic where Aotearoa New Zealand’s health expenditure as a percentage of GDP declined considerably, falling behind that of comparable countries.
- To keep pace with the 16 comparator countries between 2013 and 2019, Aotearoa would have needed to spend approximately $9 billion more on running the health system (or more than $1 billion a year more).
- Aotearoa is also unusual in that it adds GST to the data it submits to the OECD. While this is technically correct as it reflects market prices, other countries don’t apply GST or VAT to health services in the same way Aotearoa does. This may mean that Aotearoa New Zealand’s government health expenditure compared to other countries has been over-estimated for many years.
- Aotearoa New Zealand’s tax-financed system is the best mechanism to fund health and a strength of our system. The problem is more investment is needed.
