Health NZ finances worse than thought, commissioner says

Tuesday, 6 August 2024

St. John ambulance workers have voted to strike amid ongoing health system issues. The crisis deepens with Health NZ halting early access to a cancer drug, adding to the sector's mounting pressures.

Three weeks into his new role as commissioner of Health New Zealand, Dr Lester Levy says the finances are worse than he thought.

Levy was tasked with solving an estimated $1.4 billion overspend, and fixing a system many have described as broken, when he replaced the board at the end of May.

As well as a massive budget blowout, Te Whatu Ora is facing a shortage of clinicians, overworked and burnt out staff, long waiting lists, and provinces and regions without adequate cover and having to resort to telehealth services.

Levy told RNZ some months the agency's deficit went beyond the estimated $130 million.

Dr Lester Levy has been commissioner of Health NZ for three weeks now.

Change needed to happen quickly, or the agency faced going broke in coming months.

'For us, this is not a marathon, it's a sprint,' he said. 'We have to move really quickly to secure our financial position as quickly as possible to order to overcome this particular cash-flow issue that is hanging over us.'

Health NZ’s Lester Levy, who has been appointed as commissioner of the agency on a 12-month basis, says he's committed to finding savings and improving outcomes.

It would need to be solved before Christmas, he said.

But while financial issues were critical, 'that's not the main show in town,' Levy said - rather, 'reducing waiting times, because New Zealanders are waiting too long'.

But three weeks in, he could not put a number on the shortage of health staff.

He said he had launched a review to determine where staff shortages were most severe.

'I have a review being undertaken right at the moment to determine if there are any areas that are potentially unsafe or challenging,' he said.

'As soon as I have that, I'll have a clearer view of whether there are any critical issues in relation to staff shortages.'

He said they should know more in the next month or two.