There is a highly readable article at Adam Smith which outlines the problem with the NHS (which pretty much reflects New Zealand's public health system). Unusually it also proposes a solution.
According to Doctors for Reform taxation-funded healthcare can never meet demand and compulsory insurance in Europe works much better. “The NHS as we know it has had its day”, said the founder of the group, the oncologist Professor Karol Sikora. He added, tax finance is simply no longer fair because people with a healthy lifestyle have to subsidize people, who knowingly damage their health in a variety of ways. Indeed the NHS provides incentives not to bother about one’s health and even to remain ill in order to get the most out of the NHS. It is another example of the welfare state that actually encourages people to the opposite of what it seeks to achieve.
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Another reason a publicly, i.e government, funded health system doesn't work is that every patient is a cost to the system, while for a private, i.e. user funded, system every patient is a source of revenue.
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