The Government funds GP clinics based on the number of enrolled patients they have through what’s known as a capitation — per capita — system.
NZNO college of primary health care nurses chair Tracey Morgan says a capitation funding increase of just four per cent last year was widely condemned, resulting in fee hikes of up to 16 per cent by many general practices / urgent care centres.
‘A skilled nursing workforce is desperately needed to keep care in the community, ease pressure on hospital emergency departments and prevent long-term conditions worsening.’
However 2025/26 capitation funding is set to increase by 9.13 per cent, as long as general practices agree to limit any fee rises to three per cent, according to documents leaked to NZ Doctor.
But for those who don’t limit their fee rises, the funding uplift would be just 6.43 per cent, the health publication reported.
Morgan urged primary health care employers to pass this funding increase on to practice nurses via their wages to help “stem the flow” of nurses out of primary care.
“A skilled nursing workforce is desperately needed to keep care in the community, ease pressure on hospital emergency departments and prevent long-term conditions worsening.”
Practice nurses were currently paid up to 18 per cent less than their hospital-based colleagues. But they were told by employers during bargaining last year that if more money were available, they would willingly pass it on, Morgan said.
In March, Tōputanga Tapuhi Kaitiaki o Aotearoa — NZNO’s primary health care nurses accepted a five per cent pay rise, with another three per cent rise due on July 1 — a total of eight per cent.
However, this would still leave them 10 per cent behind hospital nurses with the same qualifications, Morgan said.
General Practice Owners (GenPro) Association chief executive Mark Liddle told Kaitiaki it was difficult to comment publicly as the 2025/26 capitation increase had not yet been confirmed.
However, GenPro had bargained with NZNO “in good faith” and had advised all its members to make sure they complied with the agreed three per cent rise on July 1, he said.
GenPro, along with ProCare and Green Cross, represents about 490 general practices and urgent care centres in multi-employer collective agreement negotiations with NZNO. NZNO has about 3500 practice and urgent care primary health nurse members.
Morgan said recruiting and retaining enough primary health care nurses was vital to achieving shorter waiting times, something the Minister of Health Simeon Brown said was a priority when he took up the role in January.
A Te Whatu Ora spokesperson confirmed it was in negotiations with primary health organisations on capitation funding for 2025/26 but wouldn’t comment on specific figures until negotiations were complete and agreement was reached.
“As part of this process, proposals are shared in confidence with sector partners to support robust discussions.”
NZNO is also urgently working to refile a pay equity claim for its primary health members in GP practices and urgent care centres, after the Government unexpectedly dumped 33 pay equity claims including primary health nurses’ last month.