Health Sector Issues

The issue of how we fund and provide for New Zealand's future healthcare needs to be addressed now, says Southern Cross Healthcare Group CEO Ian McPherson.

Health insurance affordability is a hot topic. But the core issue is a much bigger one than premiums, says Southern Cross Healthcare Group CEO Ian McPherson.

This speech to the New Zealand Health Summit looked at innovative healthcare models used in the UK, Spain and the Netherlands and their relevance for New Zealand.  The speech also makes the case for public - private collaboration in health.  When we stop thinking “public versus private” and begin to put the patient first, it is possible to deliver better health outcomes overall.

Advances in medical technology should offer proven benefts over tried-and-true conventional methods before New Zealanders are asked to fund the higher costs argues Southern Cross Health Society Head of Clinical Operations, Dr Justin Vaughan.

Fringe benefit tax is a significant disincentive to employer-subsidised health insurance and since its imposition in the late 1980s, health insurance coverage in New Zealand has declined from 50% to 31% of the total population. 

This project was established as a result of two resolutions passed at the Society’s 2011 AGM to look into the subject of recognising members of long-standing. 

Providing a tax rebate for New Zealanders aged 65 years and over, to encourage greater health insurance coverage, would have a significant impact on the lives of this age group, while at the same time easing pressure on the public health system.

This address to the New Zealand Medical Association by Group Chief Executive Officer Dr Ian McPherson outlines some of the ways Southern Cross Health Society is trying to moderate the impact of rapidly increasing healthcare costs on its members' premiums. 

Southern Cross Healthcare Group supports the Public Health and Disability Amendment Bill's drive for better value for money in the public health sector.  However, Southern Cross also believes that any discussions about value for money in the public health sector should take into account the important and complementary role of the private health sector in meeting New Zealanders' healthcare needs. To view the public and private sectors in isolation is to ignore the benefits and efficiencies that can be gained through a whole-of-sector approach to planning and problem-solving. 

If New Zealand wants a first world health system we need to find ways for the public and private sectors to work collaboratively.  Southern Cross has been arguing for some time that when we stop thinking “public versus private” and put the patient first, we can deliver better health outcomes overall. The private sector (particularly the not-for-profit sector) has a positive role to play in bringing innovation to the public system. We can share knowledge and experience, provide new ways of working and new ideas. 

Southern Cross has been an active participant in government-led processes designed to enhance protection of consumers of financial products and services.  This involvement has included participating in advisory group discussions and preparation of submissions in response to consultation papers, questions and draft Bills from the Reserve Bank, the Ministry of Economic Development (MED) and the Securities Commission.   

Southern Cross’s submission takes into consideration its role as an employer of 500 staff and a Third Party Administrator for the ACC Partnership Programme through its Care Advantage business. Southern Cross supports the introduction of experience rating into the Work Account and provides some suggestions in relation to the proposed framework, transitional arrangements and service delivery options for employers.

This submission to the National Health IT Board endorses the goal of enabling electronic patient records that can be accessed by clinicians across the health system.  Although fraught with issues, such an objective would represent a cornerstone for enhanced efficiency, productivity and quality across the health sector.  The Southern Cross Healthcare Group submission emphasises the need to acknowledge, engage with, and encompass, private sector health providers (such as specialists in private practice and private hospitals) in order to achieve this goal.