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How does the operation of PHARMAC's 'Community Exceptional ...

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distorted <strong>the</strong> outcomes <strong>of</strong> <strong>the</strong> research and invalidated <strong>the</strong> findings. Naturally<br />

Wilkinson and Pickett dispute this and have subsequently defended <strong>the</strong>ir data.<br />

The New Zealand Medical Association developed a ‘Health Equity Position<br />

Statement’ in which <strong>the</strong> differentiation is made between equity and equality.<br />

This position statement uses <strong>the</strong> term equity in preference to equality<br />

because it better recognises that people differ in <strong>the</strong>ir capacity for health<br />

and <strong>the</strong>ir ability to attain or maintain health. Consequently, equitable<br />

outcomes in health may require different (i.e., unequal) inputs to achieve<br />

<strong>the</strong> same result. This is <strong>the</strong> concept <strong>of</strong> vertical equity (unequal, or<br />

preferential, treatment for unequals) in contrast to horizontal equity<br />

(equal treatment for equals).<br />

(New Zealand Medical Association, 2010)<br />

The statement described <strong>the</strong> link between income inequality, social deprivation<br />

and heath inequity. The statement called on <strong>the</strong> government to give doctors<br />

adequate information, time and resources (including finances) to work<br />

innovatively and collaboratively to develop systems to reduce health inequities<br />

(New Zealand Medical Association, 2010).<br />

Successive New Zealand governments have been aware <strong>of</strong> <strong>the</strong> widening gap<br />

between <strong>the</strong> highest and lowest income families. The Minister <strong>of</strong> Health in 2000<br />

introduced legislation, <strong>the</strong> NZPHDA 2000, with <strong>the</strong> express purpose <strong>of</strong> reducing<br />

what she described as shameful inequalities (King, 2000a), particularly in<br />

relation to <strong>the</strong> health status <strong>of</strong> Maori and Pacific people. PHARMAC was<br />

established under this Act and has included <strong>the</strong> improvement <strong>of</strong> health status <strong>of</strong><br />

Maori and Pacific people as one <strong>of</strong> its decision making criteria.<br />

Wilkinson and Picket (2007) thus posed a fascinating question when <strong>the</strong>y<br />

asserted that increasing health status might be more driven by societies<br />

achieving greater income equality than striving to achieve ever higher access to<br />

increasing volumes <strong>of</strong> costly health services. The example <strong>of</strong> <strong>the</strong> USA shown in<br />

<strong>the</strong> Commonwealth Fund study (discussed on p.32) showed that highest<br />

investment in health care <strong>of</strong> all <strong>the</strong> countries provided <strong>the</strong> lowest equitable<br />

distribution.<br />

The New Zealand Medical Association has proposed that influencing social<br />

determinants <strong>of</strong> health lies beyond <strong>the</strong> mandate <strong>of</strong> <strong>the</strong> health workforce. If<br />

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