Spending on health care

Press, 13 April 1978, Page 16

Spending on health care

The cost of providing health and welfare services in New Zealand—as a proportion of the national wealth—has been rising so sharply in recent years that it is now evidently a matter of some concern to the Government. The Associate Minister of Finance (Mr Templeton) has said that New Zealand could expect little, if any, real additional expenditure on health: and the Prime Minister (Mr Muldoon) says that the demand for sophisticated, technical medical equipment might have to be restrained.

Mr Muldoon spoke, when he issued this warning, of spending less and having a more effective service. A preoccupation with expensive, advanced equipment is only one cause of the increase in health-care costs Increased pay for medical staff at all levels, increased use of costly drugs, and better hospitals and medical schools have all contributed to the increase. Most of these costs will continue to increase even if the emphasis in health care is shifted towards community health and preventative medical programmes.

Spending on health care could certainly be reduced dramatically if people could be persuaded to take seriously

the protection of their personal health. Now that the Government has issued warnings that spending on health care will not be allowed to increase at the rate it has in the past, it may be expected to initiate vigorous action on smoking, excessive drinking, unwise eating habits, carelessness on the roads, lack of exercise and the many other national habits bad for the health of individuals. The Government should also be promoting better planning and coordination in the provision of health services. The advisory committee on health services organisation spoke, in a report last year, of the lack of coordinated planning in New Zealand health services; others have drawn attention to the wasteful use of trained staff, expensive equipment and costly drugs, and Jo the lack of expert managers in hospitals and other institutions. The advisory committee has suggested that health boards be set up in chosen regions to pilot the way towards a more efficient health and hospital system than New Zealand has at present. The Government should be investigating these and other administrative reforms more vigorously than hitherto.