Te Whatu Ora may further cut digital funding

Te Whatu Ora (Health New Zealand) appears to continuously recall some funding for digital health as it focuses resources back to frontline services. 

Last week, the Digital Health Association commented on unions’ claim that as much as NZ$100 million ($61 million) could be cut from Te Whatu Ora’s data and digital initiatives. The cut, it said, comes on top of the NZ$330 million ($200 million) already taken away from data and digital, which includes the Hira project, and saved for Budget 2024.  

“That’s nearly half a billion dollars slashed from a fund that’s supposed to leverage New Zealand’s innovative digital technology sector and take our health sector into the 21st century,” DHA chief executive Ryl Jensen said in a statement.

“Health New Zealand is undergoing a reset to ensure we get back on budget and live within our means. Part of this process is putting more authority back into the regions, closer to the frontline,” Te Whatu Ora chief executive Margie Apa responded when sought for comment by Healthcare IT News. 

However, Jensen believes the budget cuts would “absolutely affect front-line services.”

“We have important processes to complete which involve talking [to] our people about budgets and then consulting on changes. We won’t comment on any changes until they’re communicated to our people and affected teams and staff have the opportunity to provide input,” Apa further explained. She said they are working closely with their employees and relevant unions to discuss these changes. 

THE LARGER CONTEXT

Before Budget 2024 was announced, it was decided early this year that some contingency funding for digital health projects would be redirected to upgrades in the healthcare payroll systems, particularly those coming close to their end-of-lives. 

Late last year, Te Whatu Ora said it wanted to ease ICT expansions and focus on “fewer, more robust systems” as costs to maintain a “patchwork” of old clinical and business system applications had mounted. 

Funding for free telehealth services was also pulled this year to make budget savings. This comes also as the Health Quality & Safety Commission found that healthcare providers went business as usual in offering in-person services and that uptake of telehealth never took off in New Zealand, even during the recent pandemic.