New Report Claims Most Recent Public Health Funding Growth Went to Private Sector

Eighty percent of the increase in public health funding from the government over the past three years went to the private sector, according to a new report. The figure equals $2.4 billion of a total $3 billion increase. Public Futures Aotearoa produced the report alongside the Centre for International Corporate Tax Accountability and Research, known as CICTAR. The coalition of healthcare worker unions includes the New Zealand Nurses Organisation, the Association of Salaried Medical Specialists, and the Public Service Association. The report states that in 2024 and 2025, the private sector received almost half of all public health spending at 46.4 percent. The Public Service Association and the New Zealand Nurses Organisation are both campaigning for a change of government.

Funding Breakdown

The report used data from Health New Zealand and the Accident Compensation Corporation to show more public money flowed to healthcare providers controlled by asset managers, pension funds, private equity funds, and multinational corporations. Report author and CICTAR researcher Edward Miller stated that the pace of privatisation had accelerated significantly. Publicly delivered healthcare through Health New Zealand and ACC saw an increase of $600 million, moving from $14 billion to $14.6 billion in the same period. General practice revenue relied on public funding for 55 percent, up from below 50 percent in the past two years. Private hospitals received more than a billion dollars for publicly funded surgeries in 2024 and 2025, marking a 93 percent growth over four years.

Government Response

A spokesperson for Health Minister Simeon Brown's office stated he did not respond to reports commissioned by unions actively campaigning to change the government. On background regarding elective surgeries, the spokesperson noted that Health New Zealand delivered 43,819 outsourced procedures in 2025 and 2026, which helped reduce waiting lists. About 14,200 fewer people were waiting longer than four months for elective surgery compared to the peak. Health New Zealand also exceeded its original target of 39,155 procedures under the Electives Boost by 11.9 percent. The government's total health spend is slated to reach $34.2 billion in the 2026 and 2027 financial year according to the most recent Budget.

Context

Public healthcare systems frequently balance direct public delivery with contracted private services to manage patient wait times and backlogs. This report highlights ongoing debates over the financial models used to deliver public services and the allocation of government healthcare budgets. Debates of this nature often focus on the balance between building internal public capacity versus outsourcing care to private providers.