The General Practice Owners Association (GenPro) is warning that some general practices are still likely to increase patient fees this year, despite Government claims that fees have effectively been frozen.
GenPro Chair Dr Angus Chambers said the suggestion that practices would not be increasing fees did not reflect the financial reality facing many providers.
“The story is that no one will put their fees up this year. Well, they might.”
Dr Chambers said Health New Zealand entered this year’s funding negotiations with the clear objective of avoiding increases in standard consultation fees, and the additional investment in general practice was both significant and welcome.
“It has certainly eased financial pressure for many practices, but it has not removed it.”
The greatest pressure to increase standard consultation fees would come from practices that had lost funding under the Government’s revised capitation formula.
“Many of those practices are receiving transitional funding over the next four years to soften the impact of the new funding model. That funding helps, but for some practices it’s simply not enough to allow them to keep fees unchanged.
“Those practices have a legitimate case for increasing patient fees because they have not been fully compensated for the reduction in funding. At GenPro, we’re aware of a significant number of practices intending to apply for approval to increase their fees.”
Dr Chambers said another group of practices had not qualified for transitional funding but remained financially worse off under the new funding arrangements.
“These practices are also disadvantaged. If they can demonstrate that maintaining current fees would threaten the long-term sustainability of their services, they have legitimate grounds for a fee increase.”
He said there would not be a one-size-fits-all outcome. “Some practices will be able to hold their fees, while others simply cannot. It depends on their patient population, staffing costs, the range of services they provide, and their overall financial position.”
Greater pressure next year
Dr Chambers said the design of the transitional funding package meant fee pressure was likely to intensify next year.
“Some practices may defer fee increases this year because transitional funding provides temporary support, but that assistance reduces over time. Unless funding arrangements change next year, there is every prospect of larger fee increases in 2027.”
ACC and urgent care also under pressure
Dr Chambers said ACC consultations and urgent care services also remained under significant financial pressure because they were not part of the recent funding boost.
“ACC consultations account for about 10 percent of appointments in a typical general practice, but ACC has not increased its contribution to reflect the rising cost of providing those services.
ractices will need to consider whether current ACC fees remain sustainable.”
He said providers of contracted urgent care services faced similar challenges.
“The increases in funding for contracted urgent care services over recent years have been well below the increase in the cost of providing care during evenings, weekends and public holidays. It is likely some providers will need to increase urgent care charges.”
Dr Chambers said any fee increases reflected the genuine cost of delivering healthcare rather than an attempt to increase profits.
“General practices are doing everything they can to keep healthcare affordable and accessible. Where fees do increase, it will be because practices have little alternative if they are to continue providing high-quality care for their communities.”
GenPro members own and operate general practices and urgent care centres throughout Aotearoa New Zealand. For more information visit www.genpro.org.nz