New Zealand healthcare spend to grow 6% annually on 2026 Budget boost

It also received the Budget's largest new operating allocation, with $3.39b.

New Zealand's healthcare expenditure is forecast to record a local currency compound annual growth rate of 6 % over 2025 to 2030, supported by the 2026 Budget, according to a Fitch Solutions report. 

The budget increases Vote Health, the government's main funding allocation for public healthcare services, by 8.4% to $19.19b (NZ$33.031b) in 2026 and 2027.

Healthcare also received the Budget's largest new operating allocation, with $3.39b  (NZ$5.839b) provided over the four years from 2029 to 2030.

“The central$800m (NZD1.37b) annual increase for Health New Zealand continues the three-year funding arrangement established in Budget 2024 to address rising healthcare costs,” Fitch Solutions said.

However, the report noted that further increases will be constrained by the government's efforts to return the operating balance to surplus and limit debt growth.

Hospital investment will create new opportunities as Health New Zealand plans to invest $540.3m (NZ$930m) over the coming year in clinical equipment, technology and hospital improvements.

This includes mobile diagnostic units and radiology upgrades, which will require imaging systems and other medical equipment.

As this investment covers hospitals already in operation, it should create near-term procurement opportunities for suppliers.

Moreover, the developments at Whangārei, Tauranga, Hawke's Bay and Palmerston North will provide a separate, longer-term source of demand.

“The larger redevelopments will generate further opportunities later in the forecast period, as they move from design and early works towards construction and completion,” the report added.

($1=NZ$1.73)