New Zealand's health reforms: a clash of cultures

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Abstract
The health reforms were announced in the minister of health's green and white paper of July 1991.1 Before the health reforms hospital care was coordinated by 14 area health boards financed according to a population based funding formula. Some hospital services were (and still are) available privately, but as health insurance contributed only 6% to total health expenditure private hospital care was restricted effectively to such areas as elective surgery. In primary care, general practice consultations carried various government subsidies, though the value of these subsidies had been reduced steadily and markedly over a decade or more.

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