The Government has amended protocols for DHBs which allows them to make better and smarter use of private hospitals to get more patients seen.

"For too long Labour's aversion to private health care has meant public hospitals have only turned to the private sector as a last minute, last resort when they realise they are not meeting their surgical targets" says Health Minister Tony Ryall.

"That is a costly, short term and short-sighted way to meet health needs."

The Health Minister says the amended protocols better enable DHBs to enter into longer term arrangements with private hospitals to provide more for the needs of the people in their districts.

"This in no way undermines the public health system. The National Government is committed to a strong public health service. But we also want DHBs to spend public money wisely. So we are telling DHBs they are free to work more cooperatively with the private sector to complement their own services, provided the long term viability of their resource and delivery is not undermined."

A new protocol has been included to make it clear there can be no cross subsidy from public to private.

"In recent years we've seen a gradual increase in hospitals contracting with private health facilities. This often happened near the end of the financial year when DHBs were falling behind in elective surgery.

"Now DHBs can contract with a private provider to deliver a set number of procedures over several years to complement their delivery, and negotiate a better price and more operations for patients."