25 July 2025 – General practice owners are delighted that the Government is modernising the way it funds community doctors to better reflect the needs of patients.
Cabinet has broadened the range of factors which influence funding from just age and sex, to include deprivation, multi-morbidity, and rurality.
“The capitation system, which determines how general practices are funded, hasn’t been meaningfully updated since it was established in 2002,” says Dr Angus Chambers, Chair of the General Practice Owners Association (GenPro).
“Despite numerous reviews and the widely supported recommendations of the 2022 Sapere report, little progress had been made. This lack of action by successive governments perpetuates inequities and undermines the sustainability of primary care.”
“GenPro has been calling for a funding review for years, so hats off to Health Minister Simeon Brown for finally getting it done and implemented from July next year.
“In particular we support the addition of funding criteria such as deprivation – a marker of high health needs – and rurality, as rural areas have less access to health services under the current formula. GenPro also supports regular updates of capitation every five years, starting in 2028.
“GenPro also welcomes Minister Brown’s announcement of increased funding to support general practitioners in training, and putting more structure around feedback from the sector. We invite him to work with GenPro to design a health target so we can see patients as soon as we can.
“GenPro is also pleased with the announcement of a group to advise the minister on primary care. We believe that decisions made by successive ministers have suffered from poor advice from the Ministry of Health and Health New Zealand leading to the current workforce and funding crisis affecting General Practice. Better advice will be essential to a high performing system in the future.
“These are all positive signs and, along with recent funding increases announced in the Budget, indicate improvements that will make a real difference for patients.”
GenPro members are owners and providers of general practices and urgent care centres throughout Aotearoa New Zealand. For more information visit www.genpro.org.nz
