PSAAP Negotiations – Post-Consultation Update

19 June 2026

Health New Zealand, PHOs, Contracted Providers, and Te Kāhui Hauora Māori are pleased to confirm that the PSAAP Heads of Agreement has now been endorsed in principle by all parties following sector consultation.

The majority of PHOs and contracted providers have indicated support for the proposed agreement. Overall, 86% of practices representing 85.5% of enrolled patients voted in favour of the proposal.

This reflects significant engagement across the sector, with strong participation from PHOs and Contracted Providers. This outcome represents a pragmatic agreement that enables progress, while acknowledging that there are some areas where further work is required.

Next steps:

  • Development and agreement of detailed contractual clauses

  • Updated payment systems to enable payment of the updated capitation rates from 1 July 2026.

  • Further work on key areas identified through consultation, including:

    • Refreshing the rural funding working group

    • Finalising the Performance framework and clinical indicators and finalising the performance-based capitation measures

    • Under-servicing and access issues (to be progressed through a dedicated working group)

We acknowledge the considerable effort from all sector partners to reach this point and the constructive approach taken to balancing different perspectives.

Further updates will be provided as detailed agreements are progressed.

Additional information and resources

The approved PSAAP Heads of agreement included significant changes to the way general practices are funded from 01 July 2026.  Prior to endorsement, practices were sent the proposed Head of Agreement and provided with details of how the changes might affect their practice funding.  The following resources have been shared to facilitate better understanding of the changes made under the new agreement & the impact on individual practice funding. As more information is received the resources on this section will be updated.

PSAAP Negotiations Presentation

Health New Zealand set out the proposed changes to the Heads of Agreement in a formal presentation pack view the slides here.

Primary Care Uplift FAQ's 

Please find out FAQ's document here.

Definitions

The capitation calculations sent out to practices included a number of classifications. You can download the full list with a more detailed definition of the data measured, here.

Capitation Rates Table

Health New Zealand has released a table showing the capitation rates using the proposed weighted capitation formula – there are 1080 rate variations using the proposed categories. Find this here.

P3 Score Methodology for Primary Care Capitation Re-weighting

The P3 (Pharmaceutical Prescribing Profile) score is a population-based indicator of long-term condition burden derived from community pharmacy dispensing data. It is applied in primary care funding to support capitation re-weighting, service planning, and risk adjustment. Please see the attached information on the P3 Methodology used for the new capitation measure here.

Percentage of practices receiving transition by district

Percentage of practices receiving transition by district