25 September 2020
Tēnā koutou members,
As indicated following Budget 2020, the Ministry of Health is undertaking a three-step process to implement the funding increases allocated to Section 88. The first of these steps is already being paid and the second step has now been signed off by the Director General of Health.
Step 1. An increase of 2.18% per year for 4 years across all modules in the Notice. The first of these annual increases took effect on 1 July 2020.
Step 2. Step 2 is an interim measure. Price increases are being applied to a limited number of modules in the existing Notice, with the focus on directing resources towards supporting women with increased complexity (medical/obstetric/social) and women who live rurally. The Ministry has finalised these price increases, which apply to the third trimester and rural travel modules as notified in the attached letter. The Primary Maternity Services Amendment Notice (No. 2) 2020 will be published on the Ministry website on 28 September, and the new prices will be backdated to 1 July 2020.
Step 3. The Ministry is undertaking a revision of the whole Section 88 Notice and is presently undertaking a formal consultation process on the proposed new structure, which includes a number of new modules to better reflect the work actually done, to support equity and improve the timeliness of payments. Implementation is expected in April 2021, at which stage prices for all modules (existing and new) will be decided. The College will circulate a summary discussion document of the proposed changes to the Notice, followed by a survey to seek members’ views to inform our submission to the Ministry.
It is important to note that the increases to the third trimester and rural travel modules in the current notice (step 2) are temporary and apply only until the broader work of amending the Section 88 Notice (step 3) is completed and implemented.
Please see below for the communication about the imminent funding increase from the Ministry of Health, and the notification letter attached.
Ministry of Health email:
- a letter with notification of an intent to amend the fee schedule of Primary Maternity Services Amendment 2007
- the draft Primary Maternity Services Amendment Notice (2) 2020
- new draft Schedule 1 with amended fees.
We are increasing fees paid to LMC midwives for 12 of the 44 modules of care for complex cases and rural services. The new fee schedule will be implemented on 1 October 2020 and effective from 1 July 2020.
We would appreciate it if you could distribute this information to your members.
This information is also available on the Ministry’s website: https://www.health.govt.nz/publication/primary-maternity-services-notice-2007.
You can also find a set of FAQs at: https://www.health.govt.nz/our-work/life-stages/maternity-services/updates-work-maternity-services-sector
If you require any further clarification please email firstname.lastname@example.org.
Acting Group Manager, Community Health System Improvement and Innovation
Ministry of Health
New Zealand College of Midwives|Te Kāreti o ngā Kaiwhakawhānau ki Aotearoa
PO Box 21-106 | Edgeware | Christchurch 8143