DHA Responds To Latest Health NZ Cuts: More Health New Zealand Funding Cuts Could Cripple The Health System

The Digital Health Association (DHA) has warned that further cuts to Health New Zealand’s data and digital services funding and workforce could have catastrophic consequences for the country’s health system.

DHA chief executive Ryl Jensen expressed significant concern following today’s announcement of 1,120 redundancies within Health New Zealand’s data and digital teams—representing 47 per cent of its workforce.

“Many of these people are responsible for keeping the health system’s aging IT systems operational,” Jensen said.

“These systems need regular maintenance and updates to function effectively. Without this critical support, the health system could face significant disruptions, and front-line clinicians may struggle to deliver timely and efficient patient care without the necessary digital tools.”

Jensen highlighted that New Zealand’s health ecosystem currently relies on more than 6,000 IT applications, many of which need urgent attention.

“The team had made good progress over the past two years on systems poised to transform how our health system is connected,” she said. “However, the legacy of 20 different DHB systems has created significant challenges, perpetuating a postcode lottery for healthcare delivery and outcomes. These cuts risk undoing that progress.

“The cuts don’t just impact the present—they stall the future,” she added. “Numerous transformative IT projects designed to bring the health system into the 21st century have already been mothballed following over $380 million in cuts to data and digital programmes in Budget 2024.”

The DHA recently presented a report to the Chair of the Health Select Committee, Sam Uffindell, warning that these funding cuts pose a dire threat to the sustainability and progress of New Zealand’s health system.

Jensen pointed out that the Government’s own Policy Statement on Health emphasised the critical role of data and digital platforms in supporting the health workforce and infrastructure.

“Digital health technologies are a priority investment if we want to improve productivity and transform our health system,” Jensen said.

However, she noted, “With the mixed messaging from the Government, it’s increasingly unclear what the Minister wants to achieve with this portfolio. The disconnect between stated priorities and actual actions only adds to the uncertainty and challenges facing the health system.”

As a solution, Jensen urged the Government to consider public-private partnerships (PPPs) as a way to fill the void that will be left.

“The sector has the expertise, the innovation, and the motivation to work with Government on affordable, achievable solutions that can rapidly transform New Zealand’s health system into something we can all have confidence in,” she said.

“All we need is for someone in Government to listen.”

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