The General Practice Owners Association (GenPro) says today's overwhelming vote by contracted primary care providers in favour of a new Government funding package marks a historic moment for general practice.

Contracted providers representing general practices across New Zealand voted by an 85 percent majority to accept the package, which includes the first significant reweighting of capitation funding since the system was introduced more than two decades ago.

GenPro Chair Dr Angus Chambers said the result demonstrated clear support for reform across the sector.

"This is a historic vote for historic change," Dr Chambers said. "For the first time ever, general practice has had a direct say on a major funding reform that will shape its future. That is a significant milestone for the profession and for primary care in New Zealand."

The vote followed a ratification process secured by GenPro, enabling all contracted providers to participate in the decision.

"I have been involved in general practice for 36 years and I cannot recall another occasion where general practices have been given the opportunity to vote on a change of this significance," Dr Chambers said.

"It is important that general practice has a voice in decisions that affect its future, and this process has shown that the sector is ready and willing to take that responsibility."

Dr Chambers said the package represented the most substantial review of general practice funding in more than 20 years and reflected the Government's willingness to address longstanding flaws in the funding system.

"We congratulate Health Minister Simeon Brown and Health New Zealand for recognising that the funding model needed updating and for engaging seriously with the sector."

Dr Chambers said the sector would continue to push for further improvements when the funding model is reviewed again in 2028.

"We are pleased to see capitation reweighting introduced. While ethnicity has not been included in the new formula, that discussion is not over and will be part of future reviews."

The revised funding formula will direct more funding towards patients with greater health needs and, together with annual funding uplifts, will result in most practices receiving increased funding.

"It is a solid package overall. Around half of practices will be clear beneficiaries, another sizeable group will be reasonably well supported, and transitional arrangements mean no practice should be significantly worse off in the short term."

Dr Chambers acknowledged that not every practice would benefit equally from the reforms.

"There will be some practices that face challenges as transition funding reduces over time. Around 20 percent of practices may come under greater pressure than usual to increase fees in future years as the transition arrangements wind down.

"What's particularly encouraging is that some practice owners who might not have personally benefited from the changes, still voted in favour because they recognised the wider benefits for patients and the sector. That reflects a genuine commitment to the greater good."

Dr Chambers said the reforms would not solve all primary care's challenges.

"We still face workforce shortages and growing demand for services. This package helps improve financial sustainability, but it is not a complete solution to access issues."

GenPro also welcomed changes to rural funding arrangements and the additional investment being directed towards rural practices, while noting that further work remains necessary.

"The Government has taken positive steps to strengthen rural funding, but rural communities continue to face significant healthcare challenges. We expect that to remain an important area for future negotiations and there remains a need for significant further investment."

"By and large, this is a positive step forward. It demonstrates that government and the sector can work together to tackle longstanding issues and build a more sustainable future for general practice."