Investment in general practice a step forward, but success depends on implementation

Pinnacle welcomes the government’s announcements this week of increased funding and workforce initiatives for general practice. Primary care is under immense pressure, with workforce shortages and financial constraints making it harder for practices to provide timely care.

"While this investment is a welcome step in the right direction, its success depends on effective implementation and ensuring funding reaches frontline services."

On Monday (3 March) the government announced $95 million per year in additional funding for general practices from July 2025, distributed through three targeted funds: a base enhanced capitation payment for practices improving service access, an outcomes-based capitation payment tied to performance targets (to be developed with the sector), and activity-based funding for specialist interventions in primary care.

This funding aims to help practices recruit staff, expand their premises, and strengthen digital infrastructure. However, more detail is needed on how these funds will be allocated and whether they will be sufficient to meet increasing demand.

"While the additional $285 million over three years s a welcome recognition of the pressures on general practice, questions remain about how this funding will be distributed."

On Tuesday 4 March, the government announced initiatives to grow the primary care workforce, starting with a $23.3 million investment in a primary care pathway for New Zealand-trained graduate doctors from 2026. The programme supports early-career doctors and increases retention in primary care.

• A streamlined process will allow 100 overseas-trained doctors to complete pre-vocational training in general practice over 2025-2026.

• Additionally, 400 primary care placements for graduate registered nurses will be funded from 2025.

• Medical school placements have increased by 100 spots per year since 2024, raising first-year enrolments to 639 annually at Otago and Auckland. More doctors will join the workforce from 2031.

Pinnacle has long supported expanding pre-vocational training in general practice and was involved in the Waikato pilot. Early exposure to general practice provides junior doctors with broader clinical experience than hospital training alone.

"Expanding this to 100 doctors is a great step, and we hope for further investment to strengthen general practice as a career."

The 24/7 telehealth service is another key part of the government’s plan. Telehealth is a great tool in the toolbox, and works best when integrated with existing general practice services, as shown by Practice Plus and Ka Ora. While telehealth is a valuable tool to improve access, particularly for rural and high-needs communities, it must complement, not replace, in-person care.

Pinnacle is looking for clarity on how these changes will improve access to care for Māori communities. Equity must be part of any plan to improve healthcare access, and as a PHO, that’s always front and centre in our work.

"We will be watching closely to see how equity is built into these measures and ensuring our own targets continue to prioritise improving outcomes for Māori."

This is a significant step forward, but there’s still more to do. If implemented well, these initiatives will strengthen the primary care workforce, improve access for vulnerable communities, and expand telehealth for urgent and unplanned care.

However, we are deeply concerned about the potential cessation of funding for key programmes in 2025, including Comprehensive Primary Care Teams (CPCT) and equity funding. This would have a significant impact on Very-Low-Cost Access practices, which serve those with the highest health needs and the least ability to pay.

Primary care is firmly on the government’s radar, and we expect further details to be announced in the coming days. We will continue working alongside Te Whatu Ora and our practices to ensure this investment delivers where it’s needed most.