# Web Capture: Health NZ — Aged Care Funding and Services Model Review

- **Source:** https://www.healthnz.govt.nz/about-us/what-we-do/programmes-and-initiatives/aged-care-funding-and-services-model-review
- **Capture date:** June 2026
- **File location:** `02_Aged_Residential_Care/2026 Health NZ - Web Capture - Aged Care Funding Review Status.md`

## Overview

Health New Zealand (Health NZ / Te Whatu Ora) is conducting a comprehensive review of the funding and service delivery model for aged residential care (ARC) in New Zealand. The review aims to ensure the model is sustainable, equitable, and delivers quality care for older people.

## Review Phase 1 (Completed December 2023)

- **Output:** _Review of Aged Care Funding and Services Model_ — prepared by Sapere Research Group.
- **Scope:** Analysed the current funding model, including the Daily Rate for Services (DRS), Care Capacity Resource Management (CCRM), and the broader service delivery framework.
- **Findings:** Identified systemic underfunding, misalignment between resident acuity and funding levels, workforce sustainability issues, and inefficiencies in the current model.
- **Status:** Phase 1 completed and report published (Dec 2023).

## Review Phase 2 (From January 2024)

- **Scope:** Service redesign and implementation planning based on Phase 1 findings.
- **Activities:** Co-design workshops with sector stakeholders, modelling of alternative funding approaches, development of new service specifications, and consideration of workforce and quality measures.
- **Status:** Ongoing. Phase 2 is developing the operational framework for a reformed funding and service model.
- **Last page update:** 28 May 2026 (metadata date on publications page)
- **No final recommendations published** — the Phase 2 outputs (Sapere modelling report, engagement summary) are described as "options and analysis" not final recommendations
- **ACFSMR is feeding into the Ministerial Advisory Group** (MAG) which was appointed Dec 2025 and tasked with reporting by mid-2026. The MAG's work is informed by ACFSMR findings, meaning ACFSMR implementation waits on MAG recommendations.

## Guiding Principles

The review is guided by:

1. **Person-centred care** — Services designed around the needs and preferences of older people and their whānau.
2. **Equity** — Addressing disparities in access and outcomes for Māori, Pacific, and other priority populations.
3. **Sustainability** — A funding model that supports a stable, well-trained workforce and viable provider sector.
4. **Quality and safety** — Ensuring services meet regulatory standards and deliver good health outcomes.
5. **Transparency** — Clear, predictable funding mechanisms that incentivise quality care.

## Publications Available

- Sapere Report (Phase 1) — _Review of Aged Care Funding and Services Model_ (Dec 2023)
- Health NZ consultation documents and workshop summaries (Phase 2, various dates)
- Related policy papers: Workforce strategy documents, quality indicator frameworks, and equity impact assessments

## Cross-References

- `11_Market_and_Industry_Reports/2025 - NZNO - Care in Crisis Aged Care Staffing Report.pdf` — NZNO report providing frontline evidence of funding model failure
- `11_Market_and_Industry_Reports/2025 - NZNO - Source Brief - Care in Crisis.md`
- `02_Aged_Residential_Care/2025 - Ombudsman - OPCAT Aged Care Monitoring Report.pdf`
- `05_Funding_and_Subsidies/` — related funding and subsidy documents
- `17_Automated_Research/02_FINDINGS/2026-06-09_1800_Prompt04B2_ACFSMRImplementationCheck.md` — Latest ACFSMR implementation status check (9 June 2026)
- `17_Automated_Research/02_FINDINGS/2026-06-07_1500_Prompt01_AgedCareMinisterialAdvisoryGroup.md` — Ministerial Advisory Group findings (feeds from ACFSMR)
- Portfolio: Health (Minister Hon Simeon Brown)