An important message from CEO Justin Butcher: Funding increase from 1 April 2025

It has been a tough year for health, and primary care in particular, but we are pleased to have identified opportunities to improve the way we fund our practices. 

Over the past 12 months, we’ve been working on refreshing our strategy to better align with the challenges general practices face. After talking with many of you across the network, our main focus areas for the next 2-3 years will continue to be workforce, workload, and funding. 

While we can’t control the speed of changes to capitation or the overall financial viability of the health system, we can influence how money flows from Pinnacle to practices. 

While I acknowledge the shift from the previous Quality Targets to the Quality Improvement Plan has added some extra work for practices, we’re proud to have unlocked an additional $1.2 million to flow through to them. 

We’ve received plenty of great feedback on these changes - here’s a selection of comments.

• “Our staff still focus on the targets along with the two improvement projects we are working on alongside this, the quality funding being paid in full, and not relative to target achievement, means we can focus on reaching the high needs patients receiving care. The previous model was not focused on this, rather it was punitive if we couldn’t meet a target for reasons beyond our control. (Carefirst, Taranaki)
• With each passing quarter, it was discouraging to see our progress reset, and despite our best efforts, the results didn’t reflect the time and energy invested. Moreover, our quality payment fluctuated significantly, leaving us unsure of what to expect each quarter. Now, rather than working towards targets, they have adopted a more patient-centric approach. And the predictability of monthly payments has brought much-needed stability. (Pihanga Health, Tūrangi)
• “QIP has afforded us an improved “system” approach to improving our outcomes, one which involves a wider team than nurses, and which looks at methodology, data, systems and processes. It also helps we get paid monthly instead of quarterly, as this is beneficial for our cashflow. (Little London, Hamilton)

Funding changes take effect 1 April 2025

Recognising the ongoing challenges you face every day, we’ve looked at how we can reprioritise the funding we receive so more can go directly into our practices. This decision reflects our shared commitment to working through these issues together. 

I'm pleased to announce we will increase capacity and coverage payments by 25 per cent, which represents an additional $600,000 for practices. You will see this as an increase of $1.25 per ESU from 1 April 2025. 

Further details will follow in the new year, but the executive committee and I wanted to signal this increase so you can head into 2025 with greater certainty. 

At this stage, there will be no change to funding for Health Care Home practices. However, we will continue to review this. 

Reprioritising funding to support practices remains a key focus, and we will continue to unlock additional funding wherever possible. 

Addressing the workforce and workload challenges

I am pleased to share some of the other initiatives coming in 2025 to address workforce and workload pressures. 

We have partnered with an immigration and recruitment company which will allow you to recruit for key health staff – such as doctors, nurses and allied health professionals – through a dedicated Pinnacle portal. 

You will only need to share what roles and skillset you need, and by when, and the company will do the rest. While there is a fee for this service, it is significantly less than standard recruitment costs. More details will follow soon. 

Following a successful pilot, we will scale the implementation of Digital Assistants across the network. By harnessing technology, such as AI scribing and robotic process automation, we aim to ease some of your workforce and workload concerns. 

In 2025, we'll launch a refreshed member benefits package, starting with a cheaper 40GB Endless Mobile Plan via Spark, as we look to extend some of our purchasing power out to the network. 

Ngā mihi nui, thank you very much, from us

I would personally like to take this opportunity to thank you all for what you do for your patients, your community and your staff. We hope you get the opportunity over these next few days or even weeks to relax with your friends and whānau. 

Meri Kirihimete me ngā mihi o te tau hou.
Merry Christmas and Happy New Year. 

Ngā mihi,
Justin Butcher
Kaiwhakatere (Chief Executive Officer)