GP clinics will receive extra funding directed to areas of greatest patient need, after a large majority of practices voted to accept Health New Zealand's 2026/27 package.
Health Minister Simeon Brown announced the $120.6 million annual funding increase alongside the first change to the funding distribution formula in more than two decades, which takes effect from 1 July 2026.
The updated model will incorporate multimorbidity, rurality, and socioeconomic deprivation alongside age and sex when calculating clinic allocations. The outgoing formula, in place for more than 20 years, considered only patient age and sex, excluding other indicators of health need and variations in the cost of delivering care.
Under the changes, 22 rural practices will gain access to rural funding top-ups previously unavailable to them.
"This change ensures a patient in a small rural town is valued just as much as one in a major city," Brown said.
The package introduces financial incentives for practices that achieve stronger outcomes on immunisations, cancer screening, and management of long-term health conditions.
Patient costs will not increase from last year's levels under the agreement.
"New Zealanders are better off when they can see their GP quickly and close to home," Brown said. "When people can access care early, they stay healthier and out of hospital, which is better for patients and the whole health system."
The additional $120.6 million follows a substantial funding increase to GP clinics delivered in the previous year, which the Government described as the largest such uplift.
The vote in favour of the package saw 86% of clinics accept the offer, clearing the way for implementation from the start of the next financial year.
The formula change marks the first revision in how general practice funding is allocated since the early 2000s, with the new weighting system designed to direct resources toward practices serving populations with higher health needs and those operating in areas where delivering care costs more.