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Financing the Canterbury Health System post-disaster
Resource type
Authors/contributors
- Reid, Matthew (Author)
- Pink, Ramon (Author)
Title
Financing the Canterbury Health System post-disaster
Abstract
The Canterbury Health System has invested substantially in its transformation to a patient-centred, integrated system, enabling improved performance despite the significant and long-term impacts of the Christchurch earthquakes in 2010 and 2011. Questions have been raised about whether this transformation is sustainable and affordable. We argue that there is a need for a post-disaster health funding strategy that takes into account the challenge of following population movements after a large natural disaster, and higher costs resulting from the disruption and the effect on the population. Such a strategy should also provide stability in an unstable environment. However, funding for health in Canterbury has followed a 'business as usual' model using the population-based funding formula, which we view as problematic. Additionally, increases in funding using that formula have been below the national average, which we believe is perverse. Canterbury has received an additional $84 million government in deficit funding since 2010/11, and this has covered part of the extra cost attributable to the earthquake. However, without system-wide integration and innovation that was underway before, and that has continued since the earthquakes, it is likely the Canterbury Health System would not have been able to meet the health needs of its population. If health funding for Canterbury had continued to increase at the average rate applied across New Zealand over the past five years, deficit funding would not have been required.
Publication
The New Zealand Medical Journal
Date
2016-12-16
Volume
129
Issue
1447
Pages
78-83
Journal Abbr
N Z Med J
PMID
27977655
ISSN
1175-8716
Language
en
Library Catalog
PubMed
Link
Notes
Study topic: Analysis of the financial sustainability of the Canterbury Health System following the 2010–2011 Christchurch earthquakes, with a focus on funding adequacy, system resilience, and the implications of a population-based funding formula in a post-disaster context.
Study type: Policy analysis / viewpoint
Key findings:
- Despite significant disruption from the earthquakes, Canterbury’s integrated, patient-centred health system improved performance across key indicators (e.g. acute admissions, aged residential care, mental health).
- Innovations such as HealthPathways, HealthOne, and ERMS were instrumental in maintaining service delivery and have since been adopted across Australasia.
- The government applied a “business as usual” population-based funding formula (PBFF), which failed to account for post-disaster volatility, increased health needs, and operational costs.
- Canterbury received $84 million in deficit funding post-quake, but would have received $127.6 million more if funding had increased at the national average rate.
- Earthquake-related costs included over $100 million in additional operational expenditure, increased mental health demand, and infrastructure damage.
- The authors argue for a stable, post-disaster funding framework to ensure health system resilience and continuity of care in future disasters.
Citation
Reid, M., & Pink, R. (2016). Financing the Canterbury Health System post-disaster. The New Zealand Medical Journal, 129(1447), 78–83. https://nzmj.org.nz/media/pages/journal/vol-129-no-1447/financing-the-canterbury-health-system-post-disaster/6876d00edf-1696476474/financing-the-canterbury-health-system-post-disaster.pdf
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