Capitation Confirmation
No Further Uplift
Despite the resounding rejection and multiple concerns put forward at the 17 July PHO Services Agreement Amendment Protocol (PSAAP) meeting, Health New Zealand | Te Whatu Ora has finalised the capitation increase. The main elements will be implemented via a compulsory variation, while some other elements will be voluntary contract amendments.
New Elements
Subject to final wording and implementation, PSAAP have agreed to the following elements under voluntary variation:
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Health NZ has stated practices who increase their co-payments to $65 for their patients over 18 years old will not trigger the fees review process, even if this is above the 7.76% allowable fee increase.
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Very Low Cost Access (VLCA) practices can charge their non-community service card patients up to $29.50, previously $19.50.
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14.3% increase to childhood immunisation funding, to bring the rate to $41.20.
The Main Points
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The input-based cost adjustment for the Annual Statement of reasonable GP Fee Increases (ASRFI) is 5.88 per cent for the 2024/25 year.
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The capitation uplift is 4%, with a 7.76%increase in average allowable fee increases, giving a combined 5.88 per cent total revenue increase.
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For those services where the ability to charge co-payments in constrained (VCLA, CSC, under 14s) an overall increase of 5.88 per cent increase is proposed, with variable actual rate changes to give effect to the increase for each cohort (9.99% for VCLA and 10.685% for Zero Fees for Under 6s and Under 14s).
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Zero uplift is proposed for Services to Improve Access (SIA), Health Promotion, Care Plus and PHO management fees.
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Initiatives to increase co-payment flexibility and reduce after-hours commitments remain under development, making their final impact unclear.
There will be no increase in the funding provided for health promotion, services to increase access (SIA) and Care Plus funding.
Here is the PSAAP Communique detailing the confirmed uplift, released following the final meeting on the 17th of July.
This uplift will be applicable from the 1st of August 2024, with payments backdated to the 1st of July 2024.