- What is Integrated Care?
- Why Integrate Care?
- Delegated Purchasing
- The Health Sector Environment and "Integrated Care"
- Examples of Developments of Maori Integrated Care Initiatives
- The Crown Objective for Maori Health
- Policy for Maori Health – Whaia te Ora mo te Iwi (Strive for the Good Health of the People)
- HFA Treaty of Waitangi Policy Development
- A Proposed Framework
- Maori Aspirations for Integrated Care
- Criteria for Integrated Care Initiatives
- References
What is Integrated Care?
For the purposes of this paper, integrated care is defined simply as:
A model of healthcare where a defined range of services is provided to a defined population within a defined budget. 1
Integrated care can refer to the co-ordination of primary and secondary services; it can mean placing the responsibility for provision of several services with a single agency; or placing the responsibility for provision of services with many agencies to co-ordinate their decisions. There are certain key features common to all integrated care models. These are: 1
- improved communication between providers
- easier access to treatment for consumers
- clearer flows of information
- clearer accountability for service quality and health outcomes
- a key person organising care
- more convenience for consumers
- more co-ordinated clinical and financial management.
An integrated care model may or may not involve the financial management of services. It may simply involve a group of providers with common service interests or common clients coming together and better co-ordinating their services OR it may extend to an agency holding the funds for a very wide range of services for a defined geographical area and funding co-ordinated services (such as a Health Funding Authority (HFA) regional office). An integrated model may involve providers of one service, or providers of many services. In its broadest sense, it may even involve integration of non-health services to integrate wider social services for the benefit of consumers.
Thus, there can be many forms of integrated care depending on the motives and desires of providers and funders, and the needs of consumers. In New Zealand, it is apparent that many forms of integration already exist but it is also clear that many providers and other organisations are still contemplating how they might participate in integrated care models.
The most important thing to realise is that integrated care means changing the way that patient care is delivered. This mere fact of change is fundamental to Maori aspirations as it is clear from Maori mortality and morbidity statistics alone, that the current methods of Maori patient care are not working for Maori.
Why Integrate Care?
One of best ways to improve service delivery to consumers is by New Zealand providers working more closely together to align their services, making the services easier for consumers to use and access. If services are working well, it is possible for illness to be prevented in many cases, thus making savings which can be reallocated to more preventative health care. Integrated Care Organisations (ICOs) can place more focus on wellness rather than illness through co-ordinated strategies, closing gaps in services, reduction of duplications, better provision of and quality of information to consumers, and better referral practices between providers.
For Maori providers, the goal is to reverse the trend of increasing numbers of Maori entering hospital for complex illnesses, by focussing more on whanau health education and early treatment. Hospitalisation incurs high costs and uses a lot of the health resource; if hospitalisations can be reduced, freed resources can be used for education and preventative health care.
Delegated Purchasing
One way of integrating care is delegating the decision-making role from the HFA to providers or ICOs who know more about effectiveness of services “on the ground†and what their local community’s and consumers’ needs are. Such decision-making would involve a provider prioritising and making planning decisions based on what they think is important and where funding should be targeted.
These organisations, both providers and ICOs, can also focus on achieving health outcomes for their populations, rather than health outputs. The HFA would measure improvements (or declines) in health status across the community rather than how many interventions, consultations or programmes were provided by individual providers.
Iwi and Maori health care organisations are particularly interested in the ability to be delegated purchasers , a role which would allow them to plan services and make decisions about what their Maori community health needs are. This approach aligns with increasing Maori participation in decision-making about their health needs and where health resources should be used.
The Health Sector Environment and "Integrated Care"
Since the 1993 health reforms, there have been many forms of integrated care (although they may not have been labelled as such) but these developments have occurred primarily in the mainstream provider sector (rather than the Maori provider sector).
Examples include:
- the maternity services model in the Wellington region
- Independent Practitioner Association (IPA) budget-holding for GMS, pharmaceuticals and laboratory to integrate the provision of these three services
- alcohol and drug (A&D) services (former Central region of the HFA) where A&D residential providers allocate limited residential funding and use savings to put into other A&D services. This is integration across a spectrum of A&D services
- the Facilitated Access to Co-ordinated Services (FACS) service which manages the budget for disability clients, determines eligibility, conducts needs assessment and pays providers to provide allocated hours of care. This integrates care across needs and co-ordinated service provision.
There are many other examples across New Zealand and, whilst savings have been made in some areas, there is yet to be a full evaluation of the effectiveness of some of these models in terms of improved quality of care, co-ordination of provider services and consumer satisfaction. For this reason, the HFA is testing several demonstration models of integrated care initiatives from 1998, in order to evaluate the effectiveness of such initiatives.
While these types of funding arrangements have been made in recent years, there has been a parallel development of new Maori providers the health sector. Many of these providers are iwi (tribally) based but many are pan-tribal organisations (eg, the Maori Women’s Welfare league) or are independent trusts and societies. As the number of these organisations has grown to around 240 nationally, there has been an increasing need to encourage the integration of these providers and services in order to provide a more seamless range of care for Maori. Many Maori providers have increasingly wished to work more closely together, to network and share experiences and to collaborate in the interests of providing a more seamless range of services. This trend will give rise to greater opportunities for formal and informal integration with mainstream services.
On the other hand, many Maori providers have become frustrated with the decision-making process about where funds are allocated (ie, that not enough funds are allocated to Maori health thus impeding their growth potential). They have also become increasingly anxious about the growing number of mainstream fund-holding arrangements and the likely detrimental impact these will have on Maori providers’ ability to attract more funding for future growth.
Some iwi can see themselves becoming delegated purchasers, having the responsibility of managing resources, planning services, and making decisions about what services are funded and the quality of care provided for their own people.
These issues have led Maori health care organisations to take a more proactive interest in integrated care as a more formal model and, in the last 12–18 months, many organisations have grasped the idea of integrated care and made significant steps towards making it a reality.
Examples of Developments of Maori Integrated Care Initiatives
The following are examples of growing initiatives in New Zealand.
- Te Roopu Huihuinga Hauora (Hawke’s Bay and Wairarapa) – a collective of Maori health providers
- Bestcare Whakapai Hauora (Manawatu) – an iwi based ICO
- Taumata Hauora (Wanganui) – an iwi based ICO
- Tui Ora - an iwi based ICO at Taranaki
- Te Punga o nga Waka (Greater Wellington) – an iwi and Taura Here ICO
- Te Poumanawa Oranga (Nelson Marlborough) – a mix of iwi, Marae, provider and other Maori organisations.
Each of these organisations has been or is in consultation with their communities and providers, and is undertaking in strategic planning with a view to becoming an operational ICO. Some of the groups have established small business teams who are preparing more comprehensive integrated care proposals arising from the strategic plans. The providers are required to produce proposals that define their population, their service range, the budget(s), their medium-term vision and their ability to achieve health gain. They must also demonstrate their ability to meet other criteria as defined by the HFA.
These initiatives, if and when progressed, will enable the HFA and Maori to test a key integrated care hypothesis:
That integrated service networks run by Maori for Maori are more effective and efficient in contributing to improved health outcomes than mainstream integrated service networks.
It would be fair to say that the approaches of the former RHA regions in respect of Maori health development had common elements:
- Maori governance over and management of funding decisions through increased participation
- co-ordination of services
- focus on health gain for Maori
- improving quality of services through monitoring
- contribution to service design.
The Crown Objective for Maori Health
The current Crown objective for Maori health, as stated in the government policy for Maori health contained in “Whaia te Ora mo te Iwiâ€: 2
To improve Maori health so that Maori have the opportunity to enjoy the same level of health as non-Maori.
The objective states that Maori have the “opportunity†to enjoy the same health status – the Crown cannot guarantee health status, it can only provide the opportunities for Maori themselves to achieve good health status, analogous to “you can lead a horse to water, but you cannot make it drinkâ€. However the Crown has an obligation to provide the opportunities even though it cannot directly change the health status of individuals, only they themselves can choose to.
The objective, however, relates to both improvement in health status and the reduction or elimination of disparities between Maori and non-Maori – the former is a process to achieve the latter. This is important given that improvements may not necessarily reduce disparities if the gap in status continues to widen. Hence, Maori health is stated to be a “Policy Priority Area†by government, and a focus on Maori health is a specific response to s8(e)(I) of the Health and Disability Services Act 1993, which requires that the “special needs of Maori are addressedâ€.
Policy for Maori Health – Whaia te Ora mo te Iwi (Strive for the Good Health of the People)
The 1992 policy statement “Whaia te ora mo te iwi†outlined policy directions for Maori and these are still current. Major directives in the policy statement include greater participation by Maori people at all levels in the health sector; priorities for resource allocation which take account of Maori needs and aspirations; and development of culturally appropriate practices and procedures as integral requirements in the purchase and provision of health services.
Additionally, policy guidelines and accountability requirements set by the Minister of Health through the funding agreement with the HFA require purchasers to address the following purchasing principles:
- equity – to increase access to services for Maori
- effectiveness – to identify and address cultural expectations of consumers and reflect these in the design, planning, purchase, monitoring and evaluation of services (focus on preventative care)
- efficiency – to purchase innovative Maori health initiatives
- safety – to ensure systems and responses are in place to eliminate or reduce risks
- acceptability – to consult with, involve and be responsive to the health services needs of Maori, and recognise Maori needs and aspirations for self management and preference for services delivered by Maori
- risk management – to ensure fiscal risks associated with poor Maori health status are identified and addressed.
HFA Treaty of Waitangi Policy Development
A key statement is made in the Treaty policy development paper prepared by the National Director for Maori Health, HFA:
It could be argued that Maori health status, pathology and acuity in general, as reflected in a host of mortality and morbidity data, provide compelling evidence for the application of the Treaty principles of proportional compensation regardless of Treaty rights and obligations. 3 , 5
The paper further states that it would be impossible to “redeem history†in terms of accepting liability for Maori health status. What can be done is to utilise the power and influence of the “price-maker†to intervene on behalf of Maori. Effective intervention, however, requires voluntary and intelligent Maori participation in the areas of policy development, decision-making and resource allocation.
To be effective, the HFA’s Treaty policies must concentrate on applying funding practices which enable and support Maori participation in the sector, Maori provider development and enhancement of mainstream service for Maori.
Increased Maori participation will be demonstrated through: provision of choice and access to services; Maori provider participation in the sector to enable them to reach a point of full participation as independent providers; and the building of relationships.
The HFA’s Treaty policies will therefore encompass a vast array of internal and externally focussed strategies and will involve human resource/personnel policies; explicit identification of resource distribution and allocation of HFA funding toward Maori health gain; improving the collection and analysis of Maori health information; and operationalising the Treaty through all of the HFA’s contracts with providers.
A Proposed Framework
A suggested framework for encompassing all the elements of the Treaty of Waitangi, as well as Government policy, 2 is described in the diagram below.

Maori Aspirations for Integrated Care
A Maori Viewpoint of Integrated Care – Broader than Just Health
The agreed holistic view of health adopted by Maori includes four components:
- Taha wairua – spiritual wellness
- Taha hinengaro – mental wellness
- Taha tinana – physical wellness
- Taha whanau – family wellness.
Maori have always recognised the need to co-ordinate a range of services, and to deliver services, in a way which meets these four cornerstones of health. So in one sense, integrated care could be viewed from a Maori perspective as one way of trying to work towards a model of “holistic healthâ€.
In addition to the concept of integrated care proposing the co-ordination of health services for people, the truly holistic model proposes that other services are also integrated eg, social, housing, justice, education. Only when integration occurs at this level will all the dimensions of wellness, as viewed by Maori, be truly in place. For instance, whanau wellness cannot be achieved through health initiatives alone – families need incomes, jobs, a home and good education.
Aspiring Maori ICOs are already signalling through their strategic plans the integration of these other services with health services, once they have established the range of health and disability services.
Maori organisations who integrate this range of services for people, are more likely to achieve results based on locally developed solutions rather than nationally developed solutions. The one thing they have in their favour is a clear and shared vision for all the people – each arm of the service will not have a different vision than any other, unlike many government agencies.
The Maori aspiration for integrated care makes a number of assumptions. Firstly, that Maori/iwi organisations which can demonstrate that they meet required criteria, will negotiate with the funder to budget-hold for either their enrolled, or an identified population. Secondly, that Maori will have opportunity to budget-hold and on-buy services (from Maori and mainstream providers where appropriate) for their population. Thirdly, that Maori will budget-hold for a wide range of services (including some secondary) to encompass a holistic and comprehensive range of services for Maori. Fourthly, that they will be contracted to produce a range of health outcomes rather than a series of outputs or volumes to provide them with the flexibility to provide healthcare in the manner they see fit.
The Maori policy framework will need to address a number of issues which the HFA is still working through:
- risk management and risk sharing arrangements
- cream skimming (due to a high health risk population of Maori)
- funding arrangements and formulae
- enrolment
- evaluation criteria.
Possibly the single most critical issue is that of risk. A risk transfer arrangement depends on two factors – the type of risk the HFA passes on and to whom it is passed. There are also two types of risk – service risk and the risk holding concerns of an ICO. The latter relates to responsibility for risk of over expenditure or increasing costs where a fixed budget has been set. Some Maori contend that the Crown should cover losses, monitoring in a manner that allows them to bear that risk, given the poor state of health of Maori today. Much of the work to be done will centre on risk management.
Criteria for Integrated Care Initiatives
The HFA produced the document “Service Integration†4 which outlines five key components of integrated care initiatives:
- Health Priorities and Health Gain Targets – agreeing and assessing costs, benefits and risks to show whether integration is cost effective and ensures high quality health services measurably improves health
- Linkages and Interfaces – information networks between providers, evidence-based decisions, resource management, improving access, reducing duplication, improving information
- Alignment – alignment with government and HFA Treaty policies; alignment with Crown objectives for health
- Incentives – clearly aligned social, financial and clinical objectives between funders and providers
- Performance – measuring and evaluating the impact of integration to inform future decisions.
Development guidelines highlight the fact that priority populations include children, Maori, young people, women, and people with chronic illness or mental illness. It also proposes a set of hypotheses to be tested and the one most relevant to this paper is:
That integrated service networks run by Maori for Maori are more effective and efficient in contributing to improved health outcomes than mainstream integrated service networks.
The HFA must have some Maori integrated networks to evaluate if it is to test this hypothesis properly; however, each of these must meet the required criteria. It will be interesting to see how Maori integration impacts on the status of Maori health, and we can only “watch this space†to see what occurs in the future.
References
- A beginners’ guide to integrated care. Central RHA, Wellington: 1997.
- Department of Health. Whaia te ora mo te iwi: strive for the good health of the people. Wellington; 1992.
- Cooper R. Treaty of Waitangi policy development. April 1998.
- Health Funding Authority. Service integration: guidelines for development of integration demonstration projects. Wellington: April 1998.
- Health Funding Authority. Maori health policy. Health Funding Authority Board minute. Wellington: May 1998.









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