General Practices Show Signs of Recovery Despite Ongoing Challenges

A recent survey reveals that general practices in New Zealand are beginning to recover after facing significant financial and operational challenges. According to the General Practice Owners Association (GenPro), nearly one in five general practices reported financial losses last year, while over half are struggling to recruit sufficient medical staff.

The findings, detailed in the GenPro Annual Pulse Survey, indicate a cautiously optimistic outlook for primary care. Dr. Angus Chambers, chair of GenPro, stated that while the situation has improved compared to previous years—when many practices closed, merged, or reduced services—there is still significant work to be done. He noted, “General practice is out of intensive care but is still in the recovery room.”

Despite the improved outlook, the loss of nearly 20 percent of practices remains a critical concern. Dr. Chambers warned that if such a trend continues, it could result in serious consequences for community healthcare access. He emphasized that enhanced financial viability is essential to prevent further closures.

The government has increased its support for primary healthcare, allocating an additional $175 million to general practices this year. This funding marks a 13.89 percent increase, the largest boost in years, and aims to address the longstanding issues of underfunding. Health Minister Simeon Brown stated that the changes are intended to create a more sustainable funding model that is responsive to the needs of patients.

Starting from July 2024, changes in capitation funding will take effect. This model will consider factors such as patient complexity, socio-economic status, and geographic location, along with age and sex. Dr. Chambers highlighted potential flaws in the new calculations, expressing concerns that some communities could face reduced funding if the changes merely redistribute existing resources.

The survey, conducted in August 2023, involved 226 respondents, representing approximately a quarter of all general practices in the country. Dr. Chambers noted that while the results are encouraging, the situation for patients remains “sub-optimal.” Over half of the practices reported doctor vacancies, and nearly one in four are still seeking nurses.

Despite these challenges, a notable improvement is that only 29 percent of practices reported reducing their services, a significant decrease from 54 percent two years ago. This stabilization reflects a gradual recovery in the sector, contingent on enhanced recruitment efforts.

As practices adapt to the evolving landscape of primary care, the need for more healthcare professionals remains urgent. With a focus on supporting communities with the highest health needs, the government aims to ensure that all New Zealanders have access to timely and quality care.

Dr. Chambers concluded that while the survey results are a step in the right direction, ongoing improvements are vital to secure the future of general practice in New Zealand.