NZ doctors paid 35% less than Aussies

Senior doctors in New Zealand are paid on average 35 per cent less than their Australian counterparts, feel undervalued and are dissatisfied with their working environment, a new report says.

The report on senior medical and dental officers (SMOs) by the Director-General of Health's commission was set up last year to help solve New Zealand's senior healthcare worker shortage following a contentious round of contract negotiations.

Its findings released on Friday show the SMO workforce had a 10 per cent vacancy rate at September 30 last year, while international medical graduates (IMGs) made up 40 per cent of the workforce.

New Zealand is disadvantaged in the international market for senior doctors because of geographical isolation, low remuneration and smaller scale hospitals and communities, the report said.

"Despite this, New Zealand has been reasonably successful in recruiting IMGs."

To address the shortage of SMOs, New Zealand must increase the number of doctors it trains and rectify the "deteriorating" retention among those who are newly qualified.

District Health Boards (DHBs) and the Ministry of Health must draw on the knowledge and expertise of SMOs, provide appropriate space, tools and support, adjust the student intake to align it with future service needs, improve the training and employment experience of doctors and prevent contract negotiations from becoming "difficult and protracted", the report said.

"The negotiations should not be seen as a periodic opportunity to address accumulated claims and frustrations; rather they should be a joint problem-solving exercise."

Health Minister Tony Ryall said the report was a "comprehensive commentary and analysis".

"Senior doctors are vital to the running of our hospitals."

The Ministry of Health has accepted and already begun implementing all 13 recommendations made in the report, Ryall said.

A progress report will be made in December, he said.

"The report is consistent with the government's clinical leadership agenda which requires DHBs to better engage their clinical staff in their organisations."

Association of Salaried Medical Specialists executive director Ian Powell said the report confirmed "how vulnerable this situation is for standards of patient care in New Zealand".

Although the report made no recommendation about how the pay gap with Australia should be rectified it was a "no brainer", Powell said.

"With such a huge pay gap New Zealand can't compete with Australia. For younger doctors in New Zealand looking for their first specialist position, for senior doctors frustrated by disengagement in DHBs and for the specialists we attempt to recruit from overseas."

He said it would take a long time to "turn this shameful situation around".

"We are looking forward to below the radar constructive discussions with the Government and DHBs prior to the start of formal negotiations next year."