Health Minister Tony Ryall says a Government move to allow private hospitals to do more taxpayer-funded operations will be a smarter use of the private sector.
However, health workers are worried allowing private hospitals to do more taxpayer-funded operations could end up undermining the public health system.
Mr Ryall told Morning Report that by entering into longer term arrangements with private hospitals, the Government can get a better price for operations and get more surgery done.
Mr Ryall also believes giving doctors and nurses an opportunity to do private work will help them to stay in the country. He said every district health board will able to take part, if they chose to.
Private hospitals are praising the plan. Until now, district health boards have called on private hospitals only as a last resort to meet elective surgery targets.
Mr Ryall says that's costly and short-sighted, and has granted DHBs more scope to negotiate prices and enter long-term contracts with private facilities.
He insists that giving more elective surgery to private hospitals won't undermine the public health system.
Listen to more
Applause from private hospitals
The country's largest private hospital group, Southern Cross, says the plan is a very sensible approach.
Another operator, Wakefield Health, says private hospitals have the capacity to double the number of surgeries they're performing.
The Association of Salaried Medical Specialists says the Government failed to consult senior doctors on the plan.
Meanwhile, an Auckland Hospital special anaesthetist says the decision to allow more surgery to be contracted to private hospitals, is an extension of what is happening in areas such as Auckland.
Jeremy Cooper says that it could help ease staff shortages if surgeons could work more in both the public and private sectors.
Listen to more