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Spend more of
health budget on making people better
21 August 2009
The Researched Medicines Industry (RMI) is urging the Government
to continue its efforts to spend more of the health budget on front
line treatment of patients.
RMI Chairman Dr Pippa McKay says international
evidence is stacking up that New Zealand is wasting more money inside
its health system than other Western countries.
She was responding today to media coverage of
a World Health Organisation report that New Zealand spends more
of its GDP on health than many other countries but gets worse health
outcomes.
The report highlights that over nine per cent
of New Zealand's gross domestic product is spent on the health system,
although it only ranks 15th in the world in terms of quality outcomes.
This is poor value for money compared to Australia which spends
8.7 per cent of its GDP and ranks second in the world. Britain spends
just over eight per cent on a health system which is ranked seventh
in the world.
"The evidence is overwhelming - we're spending
more money on the health system but the outcomes are not as good
as other countries," Dr MacKay says.
"The answer is not cost-cutting, but better
use of current spending on productive activity - things that treat
patients."
"It is no coincidence that overall health
spending increased over the last decade without gains in productivity
while at the same time, spending on medicines fell from 14.4% in
1997 to 9.6% in 2007. If you want better health outcomes, then spend
more on medicines that make people better," she says.
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For further information contact Dr Pippa MacKay, RMI Chairman 027
448 4718.
Background
Medicines save lives, reduce symptoms, and cure disease. They are
a vital component of any modern health service.
The Researched Medicines Industry Association
(RMI) represents 19 pharmaceutical companies engaged in the research,
development, manufacture, and supply of medicines in New Zealand.
RMI is committed to improving the lives of New
Zealanders by providing access to medicines of the highest quality,
safety and efficacy.
RMI is currently encouraging the New Zealand
Government to double its current expenditure on medicines from 9%
of the health budget to the OECD average of 17%. This is likely
to at least double the number of people who enjoy better lives thanks
to the astute use of medicines.
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