Hospices face service cuts unless better funding model found

Hospice New Zealand’s Wayne Naylor said that a new funding model needs to be implemented, rather than just talked about.  If not, the country could face a retraction of essential community hospice services and a reduction in available beds. He likened this prospect to the crisis faced by UK hospices in 2024.

According to a Martin Jenkins study commissioned by a New Zealand hospice collective, total spending across publicly contracted hospices will exceed the total revenues from government and community sources in less than 12 months.

Last year, it cost $226 million to run the country’s hospice services, but the Government only provided $114 million. Hospices raised $112 million from community donations, fundraising and other sources just to keep going.

For New Zealanders, all hospice care is provided free of charge.

The Martin Jenkins study, Sustainable Funding for Hospice Services, highlighted that New Zealand’s 28 publicly funded hospices relieve pressure on the national health system, particularly through fewer hospital admissions and emergency department visits.

The study’s modelling demonstrated that for every dollar the Government invests in hospice palliative care, it generates at least $1.59 in direct and wider health system benefits.

Tina McCafferty, chief executive of Tōtara Hospice, said the sector is facing escalating costs as it deals with an increasingly ageing population and patients requiring more complex palliative care.

“By their very nature, hospices are outcome focused, resilient and diligent in their stewardship of public funding,” Ms McCafferty said.

“They try to make every dollar go further, but now, armed with the valuable data and findings in this report, it is urgent that government agencies like Health New Zealand work directly, and in partnership with, the hospice sector to not just create a sustainable funding model, but to ensure it is equitably implemented across the hospice network nationwide.”

FULL STORY

Hospices under significant cost pressure – A Landmark Report shows the real value of hospices to health system – Hospice NZ (Hospice New Zealand)