Context of the report
Health New Zealand | Te Whatu Ora is proposing to cut $100 million a year from the budget of digital services and reduce its workforce from 2,400 to 1,285 roles. This is on top of more than $380 million in digital funding recalled as part of Budget 2024.
The new Digital Services budget of $658m annually equates to just 2.2% of the overall operating spend of Health NZ and proposed job losses would mean just 1.4% of the Health NZ workforce is dedicated to this critical area— figures that fall significantly below international benchmarks. The cuts have raised widespread concerns, particularly given Health NZ’s stated commitment to prioritising digital solutions to address the current health crisis. This commitment has been emphasised multiple times by Commissioner Levy and reaffirmed in the most recent Government Policy Statement on Health.
HiNZ ran a Health Funding Impact Survey over two weeks in December 2024 in order to understand the impact of these proposed cuts on frontline care and patient safety, and to understand the opportunities to mitigate these impacts through targeted investments. The survey garnered 358 responses from experts in digital health from across the sector. More than a quarter of respondents were health professionals involved in direct patient care.
HEALTHCARE ANALYTICS IN AOTEAROA NEW ZEALAND | A HINZ SPECIAL REPORT | 2 THE FUTURE OF DIGITAL HEALTH IN AOTEAROA NEW ZEALAND - VOICE OF THE WORKFORCE | A HINZ SPECIAL REPORT | 2
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