A whopping $11.1 billion has been allocated to set up and run the new health system.
Health Minister Andrew Little said the money allocated to wiping out DHB deficits would allow a clean slate for the health system. Photo: RNZ / Angus Dreaver
Health New Zealand and the Māori Health Authority will start to replace the country's 20 district health boards from July.
The government said was the biggest investment ever in the health system.
It includes about $1.8 billion to wipe out deficits.
Most district health boards are in deficit every year, with this year's total for the country at $550 million.
Minister of Finance Grant Robertson said the health system funding, over four years, would allow the new system to start life on a stable financial footing.
Minister of Health Andrew Little said it would allow a clean slate for the health system.
The deficits had arisen over the past 13 years as population growth and costs moved faster than funding changes, he said.
There would be $168m over four years for the Māori Health Authority to commission services for Māori.
In other health spending, Pharmac gets more money for new drugs - $191m over two years.
A major report this year showed there were 18 cancer drugs funded in Australia and not in New Zealand.
Little said Pharmac had assured him it would use the funding to secure as many of the drugs on its wishlist as possible, with a particular focus on cancer care.
Health Minister Andrew Little said the money allocated to wiping out DHB deficits would allow a clean slate for the health system. Photo: 123rf
There is $1.3b set aside for health infrastructure, including upgrading the very run down Hillmorten Hospital in Christchurch, Nelson Hospital, and the previously announced funding for Whangārei Hospital.
Forty-eight new ambulances and crew and some extra emergency vehicles will be funded to the tune of $166m over four years, with a further $90m for the air ambulance.
Nearly a billion dollars was being set aside for the disability system, including funding to establish the promised Ministry for Disabled People.
There is $488m for Primary Care and $76m to support Pacific health services, particularly with diabetes prevention.
The government has signalled a shift to its focus regarding Covid 19 - it is about to become part of business as usual, not a special, separate line item.
However, there is $1.2b set aside for Covid-19-related public health measures that cannot wait until the next Budget.