9:05 am today

How will Health NZ find $500m in "efficiencies"?

From Nine To Noon, 9:05 am today
BUDGET DAY 2025

Photo: RNZ

Hospitals and public health services across the country are now looking for more than half-a-billion dollars in so called "efficiencies" they've been told to find, to re-invest in patient care.

In a response to written parliamentary questions from Labour's health spokesperson, Dr Ayesha Verrall, just before Christmas, Health Minister Simeon Brown confirmed Health NZ's four regions had been set "efficiency targets" of between 2 to 4.9 percent.

He said reducing waste in back-office and procurement functions could free up up about $510 million, which could be re-invested back into patient care and government health targets, without reducing clinical staff.

The call for further savings follows cutbacks that started in 2024.

The Public Service Association put out new analysis last month that indicated Government funding cuts have forced Health NZ to run more than 30 restructures over the past two years, resulting in nearly 3 thousand workers leaving.

The union for senior doctors, the Association of Salaried Medical Specialists, is concerned about the new round of so-called efficiencies, while the effects of cutbacks of 2024 are still being felt.

The Association's President Katie Ben joins Kathryn to talk about her concerns.