97% of General Practices across Auckland plan to raise fees due to lack of government funding

In response to a lack of government funding and rising operational costs, 97% of general practices across Auckland plan to increase their patient fees, according to a survey from leading healthcare provider ProCare*.

Of those practices surveyed:

  • 39% of practices have already increased their fees
  • 47% plan on increasing fees in the next 3 months
  • 7% will increase fees in the next 3-6 months
  • 5% in the next 6+ months, and
  • Only 3% won’t be increasing their fees in the next 12 months.

This move comes as general practices grapple with significant financial pressures, including inflation, rising utility bills, and increased staffing costs.

Bindi Norwell, Group Chief Executive at ProCare says: “With government funding increasing at only 4% in the last year, and practice costs having risen more than 9% in this last 12 months alone, practices have been left with little choice – raise their fees, reduce their services, or close their doors.

“Most practices are trying to hold off from increasing their fees as they understand households are struggling right now with the increased cost of living. With Christmas just round the corner, followed by a start to a new school year, such increases will only make healthcare more unaffordable and more inequitable for communities,” she continues.

“Feedback from practices was that their patients would find such price rises difficult to incorporate into their household budgets. Therefore, we launched a campaign called Patient Voice which encourages patients to write to the Minister of Health, Dr Shane Reti, outlining their frustration at the situation. Patients can access a templated letter to send to the Minister on ProCare’s website,” concludes Norwell.

Dr Allan Moffitt, Clinical Director at ProCare says: “We have warned the government on multiple occasions that if they didn’t increase funding levels, that practices across our network would have to increase fees to help cover their costs but frustratingly these warnings appear to have been disregarded.

“Practices have asked us to convey the message to patients and the wider community that fee increases are an absolute last resort. This is not a decision they have taken lightly, as they truly understand the impact this will have on whānau, but unfortunately the decision has been taken out of their hands due to the lack of government funding,” concludes Moffitt.

 

*ProCare surveyed 100 General Practices across the Auckland region during the last 2 weeks of August and the first 2 weeks of September to ascertain their actions following the recent government funding (capitation) uplift.

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