Overview of New Zealand’s healthcare system
Question:
Discuss About The Compilation Strategy Implementing Clinical?
The study provides an overview on the management of New Zealand health services. The managers of health services in New Zealand strives to adopt best managerial practices amid huge turbulence as well as restructuring that is prevalent in present health care system of this nation (Abdelhak, Grostick & Hanken, 2014). This report highlights on the healthcare strategies of this nation through analysis of three principles of treaty of Waitangi. These three principles involve participation, protection and partnership that underpin relationship between the government and Maori. The health care system of New Zealand is also analyzed in the study in relation to key organizations, providers, consumers and policymakers. Furthermore, comparative analysis of Australian health care system with that of New Zealand is also elucidated in this study for identifying challenges to health systems of these two nations. The last section focuses on the one of the health factors creating challenge to this nation health system along with healthcare strategy framework as well as action plan embedding PESTLE.
The Waitangi treaty refers to the treaty that had been first signed on 6th Feburary, 1840 by the Maori chiefs and British Crown representatives belonging from North Island of New Zealand. This treaty has been largely significant in structuring political relation between this nation’s government and population of Maori. This objective of this treaty was to allow the Maori people and British settlers to stay together in this nation under general set of agreements (Crocket, 2013). This agreement also makes government of this nation held responsible to address indigenous people grievances and establish equality among the people of this nation. The treaty of Waitangi is based on three principles that involves-
- Partnership- This involves the communities of Maori and the government working together for developing strategies for appropriate disability as well as health services.
- Participation-This needs Maori to be engaged at every levels of health industry that includes decision-making, framing, development and health services delivery (Ludbrook, 2014).
- Protection- This includes the government of this nation working to assure that Maori have same health level as that of non- Maori and safeguarding the concepts of Maori culture.
The Waitangi treaty principles plays vital role in this nation education system and the method in which they work. The system of government in New Zealand has been strongly affected by the principles of Treaty of Waitangi that is also known as Maori language. This treaty mainly requires that Maori and this nation’s government act towards one another in good faith. Two vital methods for achieving this has been through well-versed decision marketing that involves consultation by government as well as through protection of rights of Maori under Treaty by government. In addition, the government also established Waitangi tribunal for investigating the grievances of Maori about the breaches of treaty of Waitangi. Crocket (2013) opines that this treaty has also been important as it ensures that both Pakeha as well as Maori rights are protected in account of accepting the Maori rights, identifying Maori land ownership as well as protecting their life and entailing the government of this nation to meet their requirement.
The health strategy of New Zealand mainly focuses on improvement of health of the people residing in New Zealand. This people- powered health strategy of this nation sets direction for action on the health of New Zealanders by providing nationwide structure within which this health industry develops. This puts emphasis on decreasing disparities in status of health between the population group, improving health outcomes of population and addressing issues relating to treaty of Waitangi. Other health organizations of this nation apply the principles of treaty in making their decisions regarding improvement in their health care structures (Ludbrook, 2014). The Nursing council of this nation also governs the nurse practice by setting as well as monitoring standards for registration through incorporation of treaty of Waitangi principles.
Treaty of Waitangi principles and their role in the healthcare system of New Zealand
In addition, their new strategy also addresses issues regarding access to health care services and lending support to mental health services development. The three principles of Waitangi treaty plays vital role in national health strategies of New Zealand. Additionally, these principles provide numerous benefits to the Maori people relating to their health care services. The Waitangi principles are considered as appropriate framework for underpinning health policies and health strategy of Maori because of several reasons, which includes-
- Treaty of Waitangi guides relations between the Crown and Maori
- The government as well as their agencies clearly demonstrates responsiveness to the health of Maori
- This framework has been utilized for facilitating development of coherent as well as comprehensive policies and reducing risk of missing areas for the policy attention.
From the recent evidences, it has been reflected that most of population of this nation have recorded good health as compared to other nations (Carayon et al., 2016). The new health care strategies adopted by National Health committee of this nation involve increase in life expectancy of both males as well as females. Furthermore, 83% of people residing in this nation reported that their care in the emergency department services has been quite good. Their future strategy builds around specific themes that involves-
Firstly, by making the people of this nation ‘health smart’ so that they can understand and attain the information they require for managing their care.
Secondly, by enabling the people to make their choices regarding care they receive
Thirdly, by understanding the requirement as well as preferences of people and then partnering with them for designing services (Boulware et al., 2016)
Fourthly, by communicating in proper manner and supporting individuals navigation of system that involves utilization of technology such as internet or mobile phones.
The New Zealand’s national health strategies through analysis of Treaty of Waitangi principles are illustrated below:
- Partnership- This involves the relationship between Maori and the DHB (District health Boards). According to this relationship, Maori is needed to share their decision making regarding their health services for furthering increasing its regulation. As efficiency is one of the targets of this partnership, it can be achieved through redeployment of resources at primary level of health care. However, DHB works with present population funding formula and reallocates funds for meeting objectives for Maori health.
- Participation- The participation principle is defined as innovating pathways of access that facilitate Maori to participate within the health industry (Crocket, 2013). This policy involves two approaches – provider development and allowing of health care service users. This facilitates in providing equal opportunities relating to health care services.
- Protection-. This principle mainly highlights on the supply side mechanism in health for assuring Maori proper health services. The aim of this specific principle is liberty, which means the freedom of the individuals to exercise their choice regarding health services. This principle is mainly applied in Oranga as duty of healthcare services for identifying and responding to the cultural values, practices and beliefs of Maori.
New Zealand’s health care system has undergone considerable changes over the last few decades. The reforms involve health insurance elements that create mixed public-private system to deliver healthcare (Public and private health systems, 2018). The health services in this country are generally delivered through complex network of people as well as organizations. Regular business of health care system and funding is mainly administered by DHB. They plans, administer, provide and buy healthcare services for people residing in their district in order to assure that services are effectively arranged for New Zealanders. This involves funding for hospital services, aged care and public health care services, services provided by Maori etc. Besides this, there is huge range of research institutions that involves in provision of training as well as services of the employees. In fact, there are several non- government enterprises and consumer bodies that offer services for interest of varied groups (Drummond et al., 2015). Furthermore, the policymakers that is the Health Ministry also plays important role in this system, which involves funding of national healthcare services.
This nation’s healthcare system is segmented into three broad categories that includes-
The social security Act of this nation passed in the year 1938 was aimed to assure that there must be worldwide access to health services funding via taxation system. The funding of health care system in New Zealand mainly comes from Vote Health that is around $16.142 billion as recorded in the year 2016-17 (Funding, 2018). Other funding sources involve government agencies, private sources namely insurance, local government and ACC (Accident Compensation Corporation). The Health Ministry of this country allocates near about three quarters of public funds that it manages via Vote Health to the DHB, who utilizes this to plan, buy and provides services. The present framework of healthcare funding designed by Health Ministry is not effective for the people residing in the nation for long period. Moreover, the arrangements also lack in highlighting the outcome of healthcare funding. Although a primary health care service in this country is funded by partial fee for payment, there arise inequalities in access mainly with poorer individuals and Maori utilizing services at higher rates (Gauld, 2012). In addition, as the recent funding system is complex, it makes it difficult for people to make specific choices regarding prioritization of funding. The system adopted by Health Ministry is not flexible and hence does not adapt with change in market demand. The gap that occurs in this case is that some of the funding arrangements of this nation contribute to huge disparities between the high income groups and low income groups in access to healthcare services. Sometimes it widens the gap to that huge extent in their healthcare systems.
Comparative analysis of the Australian healthcare system with that of New Zealand
This country has both private as well as public health care system that provide high standards in health care. In public healthcare system, essential services are mainly offered free of cost for New Zealanders. On the other hand, private healthcare system provides access to all private hospitals regarding treatment of urgent conditions. The entire healthcare system ranges beyond Ministry as well as DHB that is –PHO (public health organizations), crown entities, Maori etc. The structure of healthcare system has been designed by policymakers in such a manner at which it facilitates in controlling health services of this country (Gauld, 2013). Overall their health care structure highlights that they have been performing better as compared to other nations. Although this nation healthcare structure is strong, it reflects some gaps in health care service. Lower income group of this country does not attain benefit from health system with respect to others. The health system of this nation has undergone several restructuring for over the last few decades. As they have much emphasis on the primary health care, it creates huge gap in other sectors of their health systems. The health approach of population and the social systems for closing this gap is also one of the features of restructuring of health care systems. But still some gap exists between the Maori and non- Maori people this country. For example, it has been predicted that dementia will increase among New Zealanders from about 2011 to 2026 (World Health Organization, 2015).
The Health Ministry’s regulatory responsibilities within this system involve administering legislation as well as associated regulations. The legislation within the management of health care services tends to perform well but there arises some acts that do not offer services properly according to need of New Zealanders. The legislation application of this nation health care system consists of nine main parts that have direct bearing on National Collections work. This includes- Public health and Disability Act 2000, Privacy act, Health Act, Health Regulation, Health Information Privacy Code, official Information Act, Cancer Registry Avt and public Records Act (Legislation 2018). Some of the legal principles regarding this system are concerned with the health expert’s duty is to maintain privacy as well as confidentiality of data regarding patient’s healthcare treatment. In addition, it also focuses on powers of litigants for attaining access to information relating to healthcare services, which is relevant to some of the legal proceedings.
Although this nation has good reputation in account of legislation, there are still some gaps in the act. The gap occurs in the mental health legislation as this act is not serving in proper manner according to the needs of population. This has been argued that this nation must respond to the present trend and thus should evaluate mental health legislation for reducing obligation in mental health care. The gap occurs in the cost barriers between Maori and Non- Maori to access health care regarding their mental illness. For example, although this country provides high subsidy rate for several mental health care services as well as treatments, there still exists huge gap in accessing services for few people who have serious healthcare problems.
Challenges faced by the healthcare system of New Zealand
The estimated population in Australia is 23.5 million while the total population in New Zealand is 4.5 million. The total per capita health expenditure in New Zealand is $3590 USD whereas the total per capita health spending in Australia is $4708USD (theOECD 2018). . Some of the leading reasons of people’s death in Australia are chronic pulmonary disease, cerebrovascular disease, ischaemic heart disease, lung cancer etc. But the fastest increasing chronic illness in this nation is diabetes. On the other hand, some of the main causes of death of Maori and Non- Maori in New Zealand are lung cancer, diabetes, pulmonary disease etc. But the major causes of New Zealanders death is lung cancer. The rate of infant mortality in New Zealand is 4.3 with respect to 1000 live births while that in Australia is 3.2 per 1000 live births. Furthermore, average life expectancy at birth in Australia is 82.5 years whereas average life expectancy of birth in New Zealand is 81.7 years (theOECD 2018). Australian lives longer life than that of the people residing in New Zealand.
In Australia, healthcare expenditure is mainly jointly funded by both private as well as public sources and also by some individuals. Near about 40% of the health spending in Australia is particularly on the hospital services and with less than about 2% expenditure on prevention (Mossialoset al., 2016). One of the biggest components of Australia’s healthcare expenditure is particularly on the primary health services that involves front -line healthcare services, which is being delivered in community namely dental services, GP services and other practitioner services (Duckett & Willcox, 2015). Moreover, cardiovascular disease basically consumes the largest proportion of the health dollars at near about 10% of total expenditure in disease. In the year 2015-2016, Australia’s healthcare spending declined in comparison with the year 2012-2013. However, the healthcare spending per capita in this nation has been stable over the last few years.
Recent evidences reflect that the healthcare spending in New Zealand has been much less as compared to other nations. The government of this nation subsidizes primary health care via primary healthcare enterprises. According to recent report, the share of this nation government in total health spending is 80% and the per capita healthcare expenditure is US$3328. Moreover, the healthcare expenditure trends of the country have larger proportion from the government sources in comparison with other countries. Most of the healthcare funding comes from the taxation system. However, this reflects that healthcare spending in New Zealand is less than that of Australia.
This refers to the capacity of the physician to see total number of patients at time. Higher physician capacity facilitates then to handle huge number of patients in less time while less capacity of the physician aids to tackle lesser patients at more time. Recent evidences reflect that the capacity of average physician is larger in New Zealand than that in Australian. In addition, recent statistics highlights that a physician tackles larger number of patients in New Zealand as compared to that of Australia owing to proper training in their field.
Healthcare strategy framework and action plan embedding PESTLE
Hospitals are considered as the vital part of the health landscape in Australia as it provides services to several people residing in this country every year. Some of the recent statistics highlights that the total spending in hospitals of this country has been enhancing at faster rate than that of adjusted inflation (Friedberg et al., 2013). Recurrent hospital spending in Australia generally for the public as well as private hospitals summed up to near about $55 billion in the year 2013-2014. accounting to the hospital statistics (2013-2014) of this nation, near about $11 billion was spent by the private hospitals while $44 billion was spent by the public hospitals. Other statistics reflects that around $18 million went to outpatient care, $6 million in emergency care, $22 million for other services involving pathology, society health services and pharmacy. Although the spending for the public hospitals in this nation increased by near about 4.4% on an average rate, the salaries of staffs working in these hospitals enhanced by averaged rate of about 3.4% per year over the last few years.
For the past few years, the total hospital expenditure in New Zealand has been going through series of cuts for reducing the costs of health care. Although the government of this nation tries to cut cost in many fields of hospitals, they try to build several hospitals for providing services to various groups of people. Thus, it can be seen that the hospitals spending in Australia are higher than that of New Zealand.
Information technology plays vital in improving the health care system of the nation. HIT ( Health Information Technology) is mainly used by the hospitals that involves both computer software as well as hardware for dealing with the retrieval, utilization of information relating to health care, storage, sharing, communication, decision making etc (Agha, 2014). As information technology penetrates in the healthcare sector of these nations, physicians as well as patients’ experiences benefits regarding medical information. In New Zealand, the MTANZ (Medical Technology Association of New Zealand) is the biggest industrial body that represents the producers of medical technology, importers and medical devices distributors. They facilitates in improving health system of this country by providing access to patients so that they avail good medical services. They also involve workshops and seminar calendars for assisting the workers of the organization. Besides this, they also work with this nation’s government for maintaining regulatory environment and creating new services in healthcare system.
On the other hand, the MTAA (Medical Technology Association of Australia) refers to the national association that represents enterprises in medical technology sector. They aim to assure benefits of innovative as well as reliable medical technology are effectively delivered for providing good health outcomes to individuals (Cresswell & Sheikh, 2013). They mainly represents producers as well as suppliers of these technology that are being used in treatment, diagnosis etc. Even the members of this association distribute most of non- pharmaceutical goods that are used in diagnosis as well as treatment. They even play important role in offering healthcare experts with proper training for ensuring effective utilization of technology.
Both demographic as well as non-demographic factors create challenges to the health care system in New Zealand. One of the health factors that have been identified as major challenge to the New Zealand health system is distribution of age in population (Challenges and opportunities, 2018). Ageing population impacts the health expenditure as individual tends to require more health care. Change in old age structure has been one of the rapidly growing issues that occur due to ageing population in the nation. The present health care system of New Zealand has been facing huge difficulty in adapting to changes in old age structure and meeting with the demand of these people. This nation has been experiencing affect of ageing population on regular basis with large number of people in the emergency department.
The strategic intentions of the health care system in New Zealand are illustrated below-
Smart System-This theme mainly focuses on utilization of technology for improving the patient health and raising quality as well as efficiency of their health care system.
One team-This strategy creates cohesive health system through culture of trust and collaboration of people working in the organization (Gauld, 2012).
People- powered system- The main intention of adopting this strategy is to involve the individuals as users of the health care services and also as health care partners. In addition, it also helps them informed about the preferences and health requirement of people’s.
PESTLE analysis refers to the analysis in which there is assessment of political, economic, social, technological, legal and environmental factors of a specific sector. The healthcare sector is also affected by these factors, which in turn influences the player’s performance working in this sector. There are some factors that offer benefits to this sector while other offers challenges to this sector. The PESTLE analysis of New Zealander’ health care system is illustrated below:
Political- This factor highlights on the political environment of New Zealand that impact on their healthcare system. The healthcare policies implemented by the New Zealand government affect both doctors as well as patients on different levels. Moreover, New Zealand government also puts pressure on the healthcare expert in terms of delivering high quality care on the patients (Savedoff et al., 2012). This in turn adversely impacts on the health care environment of this nation. The government adopts new framework of support for the disabled people, which in turn provides individuals more choice as well as control over support (Godman et al., 2015). However, this also influences on their services that are to be funded as well as delivered.
Economic- This factor indicates how the things happening within the economy impacts on the sustainability of the healthcare system and their workforce. The growth of national income influences the health care sector in the economy. The growth in total productivity drives real incomes as well as long run cost of workers, which is considered as the main input in the healthcare services. Although few macroeconomic approaches with reference to measurement in productivity suggest that there are productivity gains in services of health care. Moreover, the reduction in consumer’s disposable income impacts the population of New Zealand who uses health insurance for availing health services.
Social- This factor reflects on the social attitudes as well as government policies that impacts on the disability laborforce. The variation in attitudes as well as expectations of the disabled individuals signifies that there has been higher emphasis on self-determination. Recent study also focuses that cohesion level or society connectedness is mainly related to individual’s health. In New Zealand, strong social networks facilitates in creating better healthier conditions in different ways. Furthermore, rise in New Zealabds aged population creates challenges for the health services as they needs huge health services in comparison to other people.
Technology- There has been huge growth in R&D ( research and development) and innovation in the healthcare technology in this nation. In fact, this country has been considered as the hub for creative models relating to healthcare service delivery mainly through public healthcare system (Cresswell & Sheikh, 2013). Moreover, advancement in medical or information technology helps their healthcare sector to attain benefits regarding services as well as systems. Implementation of new technology by this sector improves communication process as well as treatment process. Thus, it also benefits the workers by reducing the workload and saving time.
Legal-This factor refers to the legislation that affects the healthcare system in provision to offer huge range of varied services. The Health legislation Act 1956 provides New Zealand’s Health Ministry role in improving, protecting and promoting population health. It includes particular provisions that govern disclosure of information relating to health between the providers and agencies. Furthermore, the health information privacy code 1994 refers to the codes of practice that is generally issued by privacy commissioner, which in turn provides added protection to information relating to health owing to sensitivity (Savedoff et al., 2012). This act mainly covers several health agencies and protects health information regarding identifiable individuals.
Environmental- This factor indicates the environmental considerations for planning the healthcare systems. The aim of this health care industry is to decrease inequalities that involve inequalities in environment influencing health. Some of the environmental factors that impacts the healthcare system of this country involves variation in healthcare trends, change in climate etc. Changes in technological trends impacts on the primary health care organizations as the service providers find it difficult to adapt these technologies. Additionally, climatic variation also spoils the medicines and this impact on both the organizations as well as patient. However, the Health Ministry of this nation adopts few environmental measures for monitoring and improving the health of population living in this nation.
Conclusion
From the above study, it can be concluded that healthcare system is one of the important sectors in New Zealand. At the present decades, the performance of the health care system in this nation has improved owing to funding by DHB and implementation of new technologies. Moreover, the strategies adopted by the management of the health organization also help them to increase their growth. As there are several factors that adversely impacts their healthcare system, the policies adopted by their government helped them to face these challenges. Thus, this nation’s health care system is still better some nations.
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