From home, to market, to headquarters, to home: Relocating health services planning and purchasing in New Zealand

Abstract

Health sector restructuring has been in vogue, but no country has engaged in as much health sector restructuring as New Zealand where, in a decade, there have been four different public health sector structures. This article discusses New Zealand’s four structures with an emphasis on relocating the critical functions of health care planning and purchasing, and on the development of the present district health board system. The four structures include: an area health board system (1989‐1991) with planning and purchasing located at “home” in local areas and closely aligned with service provision; a competitive internal market system (1993‐1996) which separated planning and purchasing from service provision; a centralised system with a “headquarters” controlling planning and purchasing (1997‐1999) while maintaining the distance from provision; and the district health board system currently under development (1999‐) which sees purchasing and planning sent home again to regions and linked closely with service provision. The present system entails the devolution of considerable responsibility to the local level, within a framework of strong central government control. Based on New Zealand’s experience, the article notes that all but the market structure appear to have provided an adequate environment for effective health care planning and purchasing.

Citation

Gauld, R. (2002), "From home, to market, to headquarters, to home: Relocating health services planning and purchasing in New Zealand", Journal of Management in Medicine, Vol. 16 No. 6, pp. 436-450. https://doi.org/10.1108/02689230210450990