WellSouth Primary Health Network chief executive Andrew Swanson-Dobbs said the funding was a step in the right direction, but fell well short of achieving pay parity between hospital workers and healthcare workers employed elsewhere.
Health Minister Andrew Little announced the funding on Monday.
Healthcare organisations found it "very hard" to keep staff because they could not afford to pay as much as Te Whatu Ora Health New Zealand (HNZ), he said.
The Government would provide $40 million for the remainder of this financial year, and $200 million a year after that, he said.
This included aged-care centres, hospices, mental health and addiction services, Maori and Pacific healthcare organisations, and residential care for disabled people.
However nurses in general practice clinics were not included in the funding, Mr Little citing a lack of evidence of pay disparity.
“The funding is ongoing, though, and that decision could change if evidence of disparity emerges in the future.”
Mr Swanson-Dobbs said the omission of GP nurses was frustrating as there was clear evidence they were underpaid.
WellSouth was working with other primary health organisations throughout the country to ensure the Government had evidence of the pay disparity.
It needed to be be resolved quickly, he said.
"Leaving general practice nurses out of this new agreement undervalues their significant contribution to the health system, to the health of our communities, and this decision cannot be justified," he said.
Strong general practice services were the first point of contact for health advice and support.
Almost 350 nurses working in general practice in Otago and Southland had stepped up to the demands of Covid in addition to delivering routine care, he said.
It was excellent news that nurses working for various community providers were set to receive a much-deserved pay rise.
"General practice nurses deserve the same."
