Assignment-2
Case study: public health systems:
Introduction:
In todays globalized world, countries are trying to provide an update public health system for the proper health and well-being of their population. To do this, a proper financing and allocation of resources to public health care system is needed.
This case study represents the public health system of the New Zealand. The population of New Zealand consists of 4.49 million people in which 68% is having European ethnicity with 15% Maori, 17% pacific Island and 9% Asian. (World Health Organization, 2014). In terms of life expectancy women of New Zealand is having higher rate which is 82 years and men is having lower life expectancy with 78 years. Non – communicable disease is the main reason behind the mortality and morbidity of the population. (World Health Organization, 2014). The main purpose of this case study is to address how the public health system is funded in New Zealand and what are building blocks of the health system. In addition to that, how they divide the funds and resources equally in the system.
PART-1
Organized and funding system of public health in New Zealand:
Percentage of gross domestic product spent on health:
New Zealand is universally higher in spent of funds on health as compare to other countries. The total gross domestic product spent by New Zealand on health was 11.0% in 2014. (World health organization,2017). In relation to Australia it is higher as the gross domestic product of Australia on health is 9.3% in 2014. Which is less than New Zealand. The health care GDP of United Kingdom is also less than New Zealand which is only 9.1%. But on the other hand in relation to united states health care GDP which is 17.1%, the GDP of New Zealand health care is very low. (Worldbankorg,2017).
Financing arrangements:
The main source of funding in New Zealand is through the general taxation and vote health, which is $16.142 billion in 2016-2017. (Ministry of health, 2016). They divide the health care system into three areas which are as follow:
- The public system.
- The private system.
- Accident compensation corporation.
The public system
In the public system the funding is done on the base of community oriented model which includes three sectors which are:
- Ministry of health: only 1 % of the funds which is around $196 million in 2016-2017 is used by the ministry of health to run the body. Ministry of health is responsible for delivering the funds to other bodies. (Ministry of health, 2016).
- District health boards: after purchasing the funds from the government, ministry of health gives around three quarter of funds which is around 80% to the District health boards (DHB). DHB is responsible for planning and delivering of health services in the community. (Ministry of health, 2016). There are 20 DHB in New Zealand and each of the DHB is run by the 11 members in which 4 members are appointed by the ministry of health and rest of the seven members are elected by the local government elections. The main role of the DHB is to improve, promote and protect the health of the community and people. Public hospitals are funded and retained by the DHB. (Ministry of health, 2016)
- National health services: around 19 % of the funds are used for the national services such as disability services, screening services, mental health services, child and maternity services, Maori health services and clinical education and training services. In 2016-2017 the ministry of health gets $2.879 billions funds to cost health care services. (Ministry of health, 2016).
The private system:
In New Zealand people are mostly dependant on public sector than the private sector. Nearly 38% of the people in New Zealand are having private health insurance. Moreover, only 4.9 % of the funds are given to private sector out of the total purchased funds. (World health organization,2017).
Accident compensation corporation (ACC)
ACC is a scheme and insurance which is funded through different levis and taxes. Levis include the employer levies (Work account), employees levy (Earners account) and the levies from the vehicle license fees and petrol tax. They use general tax funds for the non-earner account such as kids, elderly and unemployed. The main role of this is to provide support to the people who get injured in the accident and help them to get back to their normal work and personal life. (Carse.M, 2016). This scheme accounts 8.4% of the total health funds. (world health organization,2014).
Trends to explain expenditure in New Zealand
In New Zealand funds are categorized according to needs:
- Personal health: in personal health care of the population of New Zealand nearly $12,985.4 million which is 73.4% funds spent. Which is getting increased from last five years. (Ministry of health,2012)
- Accident compensation corporation(ACC): the estimated amount of money spent on ACC scheme is which is $56.0 million in 2003-2004 but it rose up to $ 230.6 million in 2009-2010. (Ministry of health,2012)
- Education: the cost of giving training and education get increased from $552.6 million to $580.2 million. Along with that, the cost on clinical research also get increased from $130.4 million to $136.9 million. (Ministry of health,2012)
- Research, science and technology: the expenditure on research, science and technology remain stable around $83.9 million in 2009-2010. (Ministry of health,2012)
Coverage in health system of New Zealand:
Health coverage in New Zealand is similar to Britain’s health system, which is National health system(NHS). NHS means the health care system in which the care is provided through single payer system such as taxation. (Rouse.M,2011). Similarly, health care access in New Zealand is universal and free from any financial barriers. All the population of the New Zealand have equal access to the health policies and standards, treatment, prevention and cure. (Guald.R, 2014). Moreover, primary health care is funded by the government which includes public hospitals, preventive services, GP service dentist, midwife, family planning center and optometrist to allow broad access to the primary care and pay less fees as compare to private hospitals. In addition to that, the single payer drug service is used to pay less amount of fees for prescriptions. (Mark.H,2009). In addition to that people who comes under low income are eligible to get community service card in which GP visits and prescription for drugs were funded by the government. Other services such as laboratory, X-rays, homeopathy, acupuncture, naturopathy and long term care all are funded by the District health board(DHB). (Bramhall.S,2003).
Building blocks of the New Zealand health system:
To provide the quality health care services to the people, WHO set 6 building blocks of the health care system. New Zealand also works under these building blocks which are as follow:
- Sound leadership and governance: New Zealand health is governed by the corporatized public hospitals, district health boards which purchase the funds from the ministry of health to serve their population. moreover, New Zealand primary health care system helps to close the gap between the pacific and Maori population. (Funnell, R., Koutoukidis, G., & Lawrence, K. (2008).
- Health information system: New Zealand health information system is based on the e-health system. E- health means the right information is provided to the right person to provide efficient information such as clinical communication system which includes online referrals and electronic health records. (Funnell. et.al, 2008)
- Health financing: in terms of health financing in New Zealand the population is having a universal health insurance system to get access to high quality care and low cost. Around 77 % of the health expenditure is covered by universal health insurance. Rest of the expenditure is funded by the private sector and non-profit organizations. Around one third population have private insurance that cover their variety of treatments. Out of pocket payments contribute 14% of the health care system funding. Accident compensation commission contribute 9%. (Funnell. et.al, 2008)
- Human resources for health: human resources for health in New Zealand is unevenly distributed and are aged. Around 37% of the nurses in New Zealand is above the age of 50. On the other hand, the medical workforce is increased by 20% in the last five years in New Zealand. In addition to that, most of the health care professionals are moved from New Zealand to other countries in terms of money and as a result, New Zealand relies on foreign medical professionals. (Funnell. et.al, 2008)
- Essential medical products and technologies: in terms of medical products and technologies the people of New Zealand are getting heavy subsidies. The controlling agency for this is Pharmaceutical Management Agency of New Zealand(PHARMAC). (Funnell. et.al, 2008)
- Service delivery system. In New Zealand the services are delivered according to the needs such as 5% of the services are given to preventive care and health promotion. Current delivery of services is more towards the prevention of obesity, diabetes, tobacco and alcohol and drug consumption. Primary care manages the chronic illness. In terms of hospitals New Zealand have 445 hospitals out of which 85 are publically funded. Specialized health services contribute to the mental health, age care sector and disability. (Funnell. et.al, 2008)
References:
- Cdcgov. (2017). Cdcgov. Retrieved 9 November, 2017, from https://www.cdc.gov/stltpublichealth/publichealthservices/essentialhealthservices.html
- World Health Organization. (2014). New Zealand health system review. Manila: WHO Regional Office for the Western Pacific. http://www.wpro.who.int/asia_pacific_observatory/hits/series/Nez_Health_Systems_Review.pdf
- Ministry of health, 2016. New Zealand health system, Funding. Retrieved from: http://www.health.govt.nz/new-zealand-health-system
- Carse.M, 2016.New Zealand accident compensation corporation. Retrieved from: http://fpm.anzca.edu.au/documents/michelle-carse_what-happenned-in-new-zealand.pdf
- Ministry of health, 2012. Health expenditure trends in New Zealand 2000-2010. Retrieved from:
- Guald.R,2014. NHS can learn a lot from new Zealand’s healthcare system. Retrieved from:
- Mark.H, 2009. What is health care like in the UK, Canada and New Zealand? Retrieved from:
- Rouse.M, 2011.National health service (NHS). Retrieved from: http://whatis.techtarget.com/definition/National-Health-Service-NHS
- Bramhall.S,2003. The New Zealand system. Retrieved from: http://www.pnhp.org/news/2003/january/the_new_zealand_heal.php
- Funnell, R., Koutoukidis, G., & Lawrence, K. (2008). Tabbner’s nursing care: Theory and practice. Elsevier Australia.
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