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CCP – pass it on

NGO mental health and addiction service providers are facing rising costs of delivering services, with little or no funding increase from DHBs.

Each year DHBs receive a Contribution to Cost Pressure (CCP) from the Government to help offset inflation for their services and services they fund through NGOs. DHBs largely do not pass this on to NGOs. In fact in the last five years, only four out of the 20 DHBs consistently passed the CCP on – even though the funding is intended for that purpose.

By refusing to pass the CCP on, DHBs are placing increasing financial pressure on NGOs – on which they, and the community, rely on for the delivery of crucial services.

The image below shows how many DHBs passed on CCP from 2009-2013.

 

  • Information was obtained via providers based on contract increases.
  • Data from the past 5 years was used.
  • Of 100 potential data points (20 DHBs x 5 years for each), 5 data points were not obtained.
  • There was occasional disagreement of numbers – i.e. it seems that some DHBs did not pass on CCP to all providers in some years. In these instances, the higher number was used.
  • One DHB appeared to have combined the CCP for two years into the adjustment for one financial year, this was still considered as passing along CCP for two years.

What needs to happen?

  • DHBs need to commit to increasing funding for NGO mental health and addiction service providers each year, in line with the CCP increase they receive from government. 
  • Funding for NGOs needs to be increased retrospectively for the past five years of CCP increases withheld by DHBs.
  • Government needs to ensure DHBs do not use the CCP intended for NGOs as a mechanism to offset their own costs.