Health New Zealand will increase funding to aged residential care providers by 4% in the 2026/27 financial year, a boost worth $79 million.
Health Minister Simeon Brown and Associate Health Minister Casey Costello made the announcement, which includes a 2.66% base increase plus additional investment for service delivery, demand responsiveness and care access.
The funding package comes with new expectations that providers will accept weekend admissions from hospitals where clinically appropriate and safe. Such transfers have not been routine practice to date.
Brown said "older New Zealanders deserve access to safe, quality care that meets their needs and supports them to live with dignity".
The move addresses growing demand for aged care services as New Zealand's population ages. Delays in transitioning elderly patients from hospitals to residential care have contributed to longer hospital stays than clinically necessary.
The Aged Care Ministerial Advisory Group is expected to report to Ministers in the coming weeks.