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 The not-for-profit Southern Cross Healthcare Group is in discussions with a number of GP practices to establish the foundations of a primary care venture.
Group Manager - Public/Private and Primary Care Partnerships, Victor Klap, says the initiative follows more than 18 months discussion with people in the primary healthcare sector aimed at finding ways Southern Cross could play a positive role in supporting the future sustainability of general practice.
“A common and recurring theme is that the traditional general practice model is at risk, and there’s a need for new and more flexible ownership models. We think Southern Cross is well placed to facilitate positive changes that will address that need.
“The model we’re exploring is to create a coalition of practices with a range of sustainable remuneration, career development and ownership options to attract and retain doctors. We think it’s important that established GPs we partner with will retain a significant ownership stake, initially in their own practice and potentially in the venture as a whole.
“A critical success factor is to find ways to attract younger doctors into general practice, which will enable older GPs to have confidence that the businesses and patient relationships they have built up over many years can continue after they have decided to retire.”
Mr Klap says Southern Cross’ fundamental motivation is to help ensure that New Zealanders continue to have access to excellent primary care.
“We believe our focus on refreshing ownership models in general practice complements the Government-led EOI process and its emphasis on establishing integrated family healthcare centres in collaboration with various primary healthcare coalitions. This amounts to considerable change in the sector, but all of it aims to ensure that New Zealanders continue to have access to quality primary healthcare.”
Southern Cross says discussions are currently underway with a small number of GP practices in various parts of the country but no partnership agreements had yet been finalised.
“A basis of the discussions is that Southern Cross could take a partnering role in a number of ‘hub’ practices over the next three years, representing a significant investment. These practices would then form the foundations of a national coalition and provide the impetus for developing new business and ownership models, and more efficient models of care.”
Mr Klap says the Southern Cross investment in general practice will be through a subsidiary of the Southern Cross Health Trust, a charitable trust which owns the Southern Cross Hospitals and Southern Cross Travel Insurance businesses. The health insurance business - Southern Cross Health Society – has no involvement in the general practice venture.
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Editors note:
The Southern Cross Healthcare Group encompasses a number of independent businesses that share a common brand and not-for-profit philosophy. The Southern Cross Health Society (health insurance) is a not-for-profit Friendly Society that is legally and operationally independent from the Southern Cross Hospitals and Southern Cross Travel Insurance businesses, which are subsidiaries of the charitable Southern Cross Health Trust. A new subsidiary of the Southern Cross Health Trust would be established to look after investment in the general practice sector.
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