Concern about cost of health services

Press, 10 April 1978, Page 2

Concern about cost of health services

New Zealand could expect j little, if any, real additional [expenditure in health, the ; Associate Minister of Finance (Mr Templeton) told The pharmacy conference in i Christchurch on Saturday. i New Zealand this year [spent about SIOOOM on health services — SBSOM by i the Government and SISOM Iby the private health-care I sector. I There was a general concern about the cost of health services, Mr Templeton said. This was not at the size of the Budget, but ut its rate of increase. Over the last 15 years, Government expenditure on health had risen from some 4 per cent to 5.7 per cent of gross national product, which figure would be 7 per cent if it included private [ medical expenditure. During the 19705, the’

I Government’s spending on | health had risen at an averiage compound rate of 19 per cent each year, Mr Templeition said. As a result, in the present economic situation, the present proportion of gross national product devoted to health services might well be close to the limit of what was possible. ' Without growth, no more could be spent unless taxation was increased or the money claimed from some other sector. Health expenditure was high because of increased remuneration, increased sophistication. bigger and better hospitals and medical schools, bigger and widerranging programmes, increased pharmaceutical expenditure, expanding community health servies, and improved individual health support.