Nature and Scope of Functions - Statement of Intent 2008-11

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Statement of Intent 2008-11
Nature and Scope of Functions

New Zealand’s health and disability sector is largely a devolved system in which 21 DHBs plan, fund and provide health and disability services to their geographically defined populations. The Ministry funds services that have not been devolved to DHBs.

The health and disability system is broad and diverse, touching the lives of many New Zealanders in a variety of ways. For example, in 2006/07:

17.3 million visits were made to general practitioners and nurses in Primary Health Organisations (PHOs)
46.4 million prescription items were dispensed
23.2 million laboratory tests were performed
681,102 hospital discharges for medical and surgical services occurred
91,092 people accessed mental health services
418,332 cervical smears were taken
440,392 free influenza vaccinations were given
74,902 free annual checks for people with diabetes were undertaken
1.69 million personal care and home management hours were provided for older people
20,211 ‘green prescriptions’ (advice on exercise or nutrition) were dispensed
5907 items of ministerial correspondence and 2696 written replies to parliamentary questions were drafted by Ministry staff.

Around 80 percent of a total $12 billion, administered by the Ministry on behalf of the Government, is distributed to DHBs. Public hospitals and the majority of public health services come under the umbrella of DHBs. DHBs fund 82 PHOs to provide essential primary health care services to local communities. More than 200 national and local non-governmental organisations (NGOs) and voluntary organisations provide not-for-profit services funded by the Ministry and DHBs. The DHBs also fund some private providers, such as aged-care hospitals, rest homes, pharmacists, laboratories and radiology clinics.

Almost 20 percent of the total funding is used to fund services purchased nationally. The Ministry purchases services directly with this funding, including disability support services, public health services, specific screening services, mental health services, electives and national personal health services, Maori health services, and post-graduate clinical education and training.

Less than two percent of the total funding is spent on the Ministry to deliver its functions in support of the sector and government. The Ministry’s core functions are:

strategy, policy and system performance: providing policy advice to government on improving health outcomes for all, reducing inequalities and increasing participation, nationwide planning, facilitating collaboration and co-ordination within and across sectors
monitoring and improving the performance of health Crown entities, including DHBs
funding and purchasing of health and disability services on behalf of the Crown including maintenance of service agreements, particularly for public health, disability support services and other services that the Government has determined shall be purchased nationally
servicing Ministers’ offices and ministerial advisory committees
payment services: administering and monitoring service agreements and payments for health benefits and service agreements
information services: collecting and analysing health information
administration of legislation and regulations, and meeting legislative requirements.

The Minister of Health has overall responsibility for the health and disability system. The Ministry is the principal advisor to the Government on health and disability policy. It also acts as the Minister’s agent in managing the formal relationship with DHBs and as an intermediary between the Minister and representatives of the sector.

The health and disability sector primarily contributes to the Government theme ‘families, young and old’. The Ministry is the lead agency for the sub-theme ‘better health for all’. The overriding outcome the Ministry is working towards is ‘Healthy New Zealanders’. This is the Ministry’s vision. The Ministry works towards this vision by providing a wide range of functions and delivering a number of initiatives. The Minister’s priorities, and three other Ministry-identified priorities, are the primary areas of focus over the medium term. This is explained further in the ‘Operating Intentions’ section.

The Ministry is able to influence improvement in health and disability outcomes by working closely with the wider health and disability sector, and the public sector. The diagram below shows the Ministry’s relationship within the health and disability sector.

Figure 2: The structure of the New Zealand health and disability sector

Thumbnail image of Figure 2: The structure of the New Zealand health and disability sector.

Thumbnail image of Figure 2: The structure of the New Zealand health and disability sector.

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