Waikato University promises planned medical school won't be downsized despite less govt funding

Waikato University is promising its planned new medical school will not need to be downsized, despite the government putting much less money than originally expected into the project.

Opposition parties, however, want the government to show how it arrived at the revised costings.

In 2023, National campaigned on a $380 million school in Waikato, with the Crown putting up $280m and the university raising the remaining $100m.

However, on Monday, the government confirmed it would contribute $85.25m to the school, with the university chipping in $150m, with the help of philanthropists.

The revised numbers came as the result of a business case, which was secured by ACT in coalition talks.

The school, which will start its four-year programme in 2028, will prioritise clinical placements in rural and regional communities.

"The admissions criteria will be around graduate entry, and it will be about ensuring that the people who come forward have demonstrated commitment to rural communities," said Health Minister Simeon Brown.

"That will be a key part of the admissions criteria: to make sure that we are training in place, staying in place. That's a key part of why this government's investing in it."

Rural Health Network pleased at progress, frustrated at time taken

The Rural Health Network said the school was an "exciting opportunity" to boost the much-needed rural workforce.

Dr Fiona Bolden, chair of Hauora Taiwhenua, said rural-origin students, who were trained rurally, and by rural health professionals, were six times more likely to work rurally than otherwise.

"I think that this gives a chance for those people who may be more diverse and done other other degrees, first of all, to find a way to get through medical school," she said.

"The design of the course has been set up to make sure that they are trained in long-term general practice placements, so they get to learn about continuity and the community in which they're placed."

However, with the first graduates not set to enter the workforce until 2032, Dr Bolden expressed frustration it had taken this long.

"We already need these people right now, we're already about 130 full-time equivalent GPs short in rural areas right now, and we only have 500 full-time equivalents in total. What that actually means is a lot more GPs than just the 130, because it's quite unusual now for someone to work a full-time equivalent because of the nature of the job and how the job's changed."

Other medical schools react

Throughout the process, the country's two existing medical schools argued they could train more students at a lower cost.

Reacting to the announcement, the University of Otago said it was confident it could continue to deliver high-quality medical education.

"We are disappointed that government did not follow the alternative and more cost-effective option of further increasing the intakes into the country's existing medical schools," said associate professor Megan Gibbons, Pro-Vice-Chancellor Health Sciences.

"However, any investment that supports growing and sustaining the health workforce is a step toward strengthening care for our communities - particularly in rural and underserved regions."

The University of Auckland currently had 170 medical students at Waikato Hospital and in general practices in the region.

Professor Warwick Bagg, Dean of the Faculty of Medical and Health Sciences, said proceeding with the Waikato school was a positive signal for medical education in New Zealand.

"One hundred and twenty additional doctors will in time contribute to addressing the workforce shortage. They will add to the 360-plus University of Auckland graduate doctors each year," he said.

Opposition parties call for transparency

Labour and the Green Party called on the government to show its working.

Brown confirmed the business case would be proactively released "soon", but would not put a specific timeframe on it.

Labour's health spokeperson Dr Ayesha Verrall said decisions needed to be transparent.

"It's harder and more expensive to see a doctor than ever, and we need to be confident investments in medical training will deliver. It is not clear how this investment is better for New Zealand than the alternatives," she said.

The Greens' tertiary education spokesperson Francisco Hernandez pointed to earlier Treasury advice which had concerns over Waikato's ability to contribute to the costs.

"The government got advice that approving the Waikato medical school would raise the risk profile of Waikato University from medium to high," he said.

Despite the revised costs, Hernandez expressed scepticism the project would not blow its budget.

"The cost estimates have shifted so much, I wouldn't be surprised if there's scope creep down the line, and Waikato Uni ends up having to come back to the government with a begging bowl, because the cost ends up being more than what they thought it would be."

Brown said the Tertiary Education Commission had provided advice to the Universities Minister, Dr Shane Reti, which showed Waikato was in a strong financial position, and could leverage its balance sheet.

He and the Prime Minister were satisfied Waikato could meet its end of the bargain, and if the philanthropists could not come through the university had the "financial firepower" to backstop it.

"They are confident, having reached out to their donors, that they've got really strong pledges to be able to support that, and we have also wanted to be reassured that those pledges are real. That's why the Treasury work happened, and why we've taken a little bit of time to work through it," Christopher Luxon said.

Waikato University says costs were always going to come down

Waikato University said its planned new medical school would not need to be downsized despite the government putting much less money into the project.

University of Waikato Vice-Chancellor Professor Neil Quigley said the initial cost of the project was a high-level estimate of the maximum funding that might be needed.

"It was always going to be the case that as we interrogated the costs in detail, it [the overall cost] would come down.

"The costs that we've now identified are the true costs that reflect the facilities we actually need."

He said the university expected its $150m contribution to be half from operating profits and half from donations.

"We're a long way down the track with commitments to that level of philanthropic support already, and the university is in very good financial shape at the moment.

"We're confident we can make the commitment."

The university's focus would be training students who wanted to work in primary care and outside main centres, where the need was greatest, Quigley said.

"We have a plan to ensure that students spend three of their four years in the medicine programme in clinical placement in rural and provincial areas."

The university'sprogramme had the support of communities, doctors, and other healthcare professionals, he said.

"Where we've got to today has taken a while, but probably was necessary to build the level of support needed."

The university was finalising where students would go for their clinical placements with rural and regional communities.

Quigley said it was about time New Zealand gave those with any undergraduate degree an easier pathway to enter medicine, in line with other countries like Australia.

Seymour says ACT is to thank

ACT leader David Seymour, meanwhile, was taking credit for the money saved from National's original proposal.

The party had secured a commitment in its coalition agreement with National to conduct a business case before the project could go ahead.

"I guess when people come to you and say 'we've figured out how to do it $200m cheaper,' it's kind of hard to say no. I think saving $200m and getting a third medical school, not a bad day," Seymour said.

Luxon, on the other hand, said the decision was made as a Cabinet.

"Success can have many fathers and mothers, and if everyone's feeling good about it in our government, that's fantastic," he said.

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