In response to a recently circulated report that questions the role and financial practices of Primary Health Organisations, Western Bay of Plenty Primary Health Organisation (WBOP PHO) wishes to address several misleading claims, while reaffirming our commitment to transparency, responsible resource management, and the health of our community.
The independent document titled PHO Benchmark Comparison Report, authored by Murray Lilley, contains several flaws, the most basic being the assumption that PHOs exist solely to fund general practice. “Our role goes beyond managing funds. In reality, PHOs also plan, fund, and deliver a broad range of primary and community health services, such as diabetes programmes or mental health services. These are supported by separate funding streams with defined purposes set by Te Whatu Ora | Health New Zealand”, details Lindsey Webber, WBOP PHO CEO.
“I’m surprised and concerned that PHOs were not consulted on the issues raised in the report. We pass 100% of the capitation funding we receive directly to practices, none of it is retained by the PHO as suggested,” says Graeme Elvin, Co-Chair of WBOP PHO.
Local GP and WBOP PHO Co-chair, Dr Dan McIntosh, acknowledges the system’s challenge. “We’ve openly said the capitation funding model needs improvement, and we support more resources going directly into general practices, but those funding decisions do not sit with the PHOs. Our role is to make the best use of the resources we’re given.”
Fifty per cent owned by general practice, WBOP PHO plays a central part in the local system, working in partnership with general practices, iwi, Hauora Māori providers and the community to support delivery of services that respond to the needs of our population. “We are not in competition with our practices. We are committed to supporting local sustainability of general practice services on behalf of our community”.
Setting the Record Straight
What We Do
WBOP PHO supports a wide range of functions that make primary and community care more connected, proactive, and equitable:
- Network Providers Support: Enabling general practices to focus on patient care by providing funding, training and tailored support that reduces admin pressure and strengthens service delivery.
- Population Health Initiatives: Designing, coordinating, and promoting programmes that support mental health, diabetes care, immunisation, outreach, smoking cessation, school health, and more.
- Coordinating Primary and Secondary Care Interface: Ensuring seamless integration of health services across general practices, community providers and secondary care.
- Data & Digital Intelligence: Using information to guide meaningful action, support new initiatives and investments, helping PHO teams and network providers identify needs, plan outreach, and improve health outcomes. It’s about understanding people and making care responsive.
- Addressing Health Inequities: Developing initiatives to reduce disparities in health outcomes among different population groups.
How We Are Funded
PHO funding is made up of different streams, each with a defined purpose set by Health New Zealand | Te Whatu Ora. It is not accurate to assume all funding is directed to general practice.
- Capitation Funding: 100% of this funding is passed directly to general practices to support subsidised patient care.
- Service Delivery: Other funding streams support a range of community health services, such as immunisation outreach, smoking cessation, diabetes programmes, and workforce development.
- Responsive Planning: We regularly adjust services based on feedback from our network to better meet local needs.
- Operational Management: Some contracts include a small management fee to cover coordination and delivery costs. Independent audits confirm these remain within or below permitted levels.
Our Services
PHOs not only transfer capitation funding to general practices but also deliver services funded through specific streams allocated by Te Whatu Ora | Health New Zealand.
- Boost on Frontline Staff: WBOP PHO has steadily expanded service delivery, particularly since 2021 with the introduction of the Integrated Primary Mental Health and Addiction programme. We now employ 19 Health Coaches and 18 Health Improvement Practitioners (HIPs), who are based in general practices and provide free one-on-one support for mental and physical wellbeing to our communities.
- New and Strengthened Services: Over the past year, WBOP PHO has expanded its service delivery through initiatives such as the diabetes specialist service, which employs dietitians and nurses, providing free self-management groups, one-on-one support, and clinical education for providers, including insulin starts. We also support general practices through the Comprehensive Primary and Community Care Teams (CPCT), which now include PHO-employed physiotherapists, pharmacists, and paramedics. The school-based health service, in place since 2015, has also grown steadily. This year, we have a total of 13 nurses providing free support to secondary school students in Years 9 to 13.
Our Staff
WBOP PHO currently employs 116 staff, with 71 (61.2%) in frontline roles and 45 (38.8%) in support and administrative functions.
- Frontline Healthcare Providers: Our team includes a wide range of healthcare professionals working directly with patients to improve health outcomes. This includes doctors, nurses, Health Coaches (HCs), Health Improvement Practitioners (HIPs), social workers, dietitians, physiotherapists, pharmacists, and paramedics.
- Support and Administrative Staff: Our support and administrative team plays a vital role in ensuring effective service delivery and driving new initiatives. This includes roles like our Equity Programme Lead, who works directly with general practices through training and engagement, and our Network Services Team, which provides direct support to practices, manages services such as Acute Demand, Minor Skin, and Breast Imaging, and delivers workforce development opportunities.
Practice Ownership and Support for primary care
WBOP PHO does not own or hold shares in any general practices, however, we work closely with our network to ensure the sustainability of primary care services in our region.
- After-hours: A key example is our arrangement with Tauranga Accident and Healthcare, which we contract to provide urgent care services outside normal hours. This service is delivered in partnership with local general practices, whose GPs help staff the clinic, ensuring continued access to care across our region when regular practices are closed.
Financial Transparency and Accountability
We follow strict processes to manage funding responsibly. PHO funding is set by Health New Zealand | Te Whatu Ora and is regularly audited.
- Detailed Financial Reporting: We provide comprehensive breakdowns of our funding sources and expenditures in our annual reports, which are publicly accessible on our website.
- Independent Audits: Our financial statements undergo regular independent audits to ensure accuracy and accountability. Audits confirm 100% of capitation funding goes to general practices.
- External Scrutiny: Each year, PHOs hold an Annual General Meeting where finances and the operating model are reviewed by member practices and the wider network.
- Governance: WBOP PHO is governed by a board of representatives from Providers Inc., representing general practices, and local iwi Ngāti Ranginui and Ngāi Te Rangi. All decisions must be unanimous, ensuring collective agreement and shared responsibility.
About the WBOP PHO
The Western Bay of Plenty Primary Health Organisation is a non-profit organisation that supports and delivers primary health care and wellness services through general practices, iwi partners, and community organisations from Katikati to Whakatāne. We achieve this by planning, funding, and coordinating services, projects, and programmes alongside providers.
We are a joint venture (JV) between Ngāi Te Rangi iwi, Ngāti Ranginui iwi, and Western Bay of Plenty Primary Care Providers Inc (Providers Inc.), and we operate with the approval and funding of Te Whatu Ora Health NZ.
