national assessment of our health assets shows that our health infrastructure
is on life support and points to systemic weaknesses in the ways we plan, fund,
and deliver our social infrastructure,” says Infrastructure New Zealand CEO
the Ministry of Health released its report of the National
Asset Management Programme for district health boards (DHBs).
commend the Government and the Ministry of Health for commissioning and
publishing this vital and confronting work. For far too long, there has been
poor transparency on the true condition of New Zealand hospitals.
report found that our hospitals are old, with significant infrastructure
deficiencies, and are technologically behind the times.
estimate that, though our hospitals have a total replacement value of $24
billion, they will need $14 billion in capital investment to bring them up to standard
over the next decade, showing just how much work is needed.
$14 billion of investment required is a major increase from the $5.5 billion
estimated a decade ago and will likely rise further the longer we delay.
$750 million in capital investment was committed in Budget 2020. This is a
significant step forward but it only represents half of what is required every
year for the next ten years.
ten-year funding commitment from Budget 2021 will be required.
will not only demonstrate to the public that the Government is committed to
resolving severe health infrastructure issues, but will give the infrastructure
sector time and confidence to scale up for the largest health capital
investment in decades.
couldn’t have come at a better time. The vertical construction sector will
soften markedly through 2021 as existing projects are completed and private
investment remains muted.
now has an opportunity to build through the dip, utilising available resources
and improving the quality of life-saving infrastructure.
the Government is unable to commit funding directly, there is significant
private capital (including quasi-public entities like NZ Super and
ACC) looking for opportunities and a range of models are available to help
Government manage cashflow and meet essential service demand.
of our health sector should also be investigated.
that New Zealand’s provision of ICU beds is far
below comparable countries and ongoing DHB financial pressures
suggest our model may no longer be fit for purpose.
spending should not be ‘the ambulance at the bottom of the cliff’.
planning and funding of high-quality housing, water, transport and social
infrastructure can provide highly effective ‘primary care’ intervention, and
this should be prioritised as well to
improve holistic health outcomes for Kiwis.
Government should be setting ambitious outcomes for the health of kiwis –
we look forward to transformational reform such as that recommended by the
Health & Disability System Review,” says Blair.
For further information and
comment contact Paul Blair on 021 902 436