On 22 May 2025, the New Zealand Finance Minister presented Budget 2025, with healthcare receiving modest targeted investment.
Total Vote Health received an increase of 4.8% from the current financial year to $31.052 billion for the coming financial year. Te Whatu Ora hospital and specialist services received a slightly larger share of the funding allocation, increasing from 49% to 51% of Te Whatu Ora Health New Zealand’s portion of Vote Health funding.
However, given that healthcare delivery costs continue to escalate, this funding increase is unlikely to fully address the cost pressures Te Whatu Ora faces, which are felt daily by clinicians trying to care for patients. Health experts have noted that increases below 5% in the current economic environment amount to merely maintaining existing service levels when accounting for inflation, population growth, and increasing complexity of healthcare.
Key health investments
Vote Health funding included several targeted initiatives:
- $91 million over four years towards 12-month prescriptions
- Over $440 million over five years for primary care initiatives
- Over $1 billion for infrastructure including hospital and capital projects in Wellington, Palmerston North and Nelson
Primary care focus
Primary care received focused attention in this budget. The funding package includes over $440 million over five years for various primary care initiatives that have been previously announced, $164 million over four years for urgent and after-hours care expansion, and investment in a new 24/7 digital primary care service as part of the broader primary care package. Despite the July launch date for the digital service, limited detail has been provided about its implementation.
TV remains hopeful that Te Whatu Ora Health New Zealand will support primary care initiatives that specifically address gynaecology first specialist assessment waiting lists and improve access to gynaecological care for women.
Positive development for women’s health
A significant positive for women’s health in this budget is the introduction of 12-month prescribing where clinically appropriate and safe. This change is designed to remove unnecessary barriers and reduce costs for patients with stable, long-term medication needs. Medical practitioners and patients will determine the need for follow-up based on clinical requirements rather than arbitrary timeframes.
TV participated in the Ministry of Health consultation on extending prescribing duration late last year and supported this shift. We noted that 12-month prescribing will be of particular benefit in women’s health for:
- Oral contraceptives
- Hormone replacement therapy
- Folic acid and iodine supplementation during pregnancy
- Progesterone for abnormal uterine bleeding
The Ministry of Health expect increased maximum prescription length to be available in early 2026, after changes to regulations and IT systems.
Looking forward
Of concern is that approximately half of the $5.3 billion in annual budget savings came from controversial changes to the pay equity regime, which will undermine efforts to address historic pay inequities, including in female-dominated health professions which are critical for delivery of health care.
TV will continue to advocate for targeted investments that address the specific healthcare needs of women and support the specialist workforce required to deliver quality gynaecological and obstetric care across Aotearoa New Zealand.
Media enquiries
Catherine Cooper
Executive Director Aotearoa New Zealand
Email: ccooper@ranzcog.org.nz
Phone: +64 21 137 0748
