Te Whatu Ora (Health New Zealand) has recently announced plans to reduce its workforce in the data and digital department, with approximately 653 full-time-equivalent roles set to be cut. This accounts for 33.7% of the current positions within Digital Services, making it the largest job reduction among services. Additionally, the government is proposing layoffs in other areas, including 49 jobs at Pacific Health, 55 at the National Public Health Service, and around 15 positions at Hauora Māori Services.
This move is part of Te Whatu Ora’s cost-cutting measures that have been implemented since the beginning of the fiscal year. The organization initially recalled up to NZ$330 million in funding for digital health initiatives, including the Hira project, which has been put on hold. Some of the savings from these cuts have been redirected towards upgrading healthcare payroll IT systems, while funding for certain free telehealth services has also been reduced. The government is looking to recall an additional NZ$100 million from digital health to allocate to frontline services.
According to Margie Apa, the chief executive of Te Whatu Ora, these measures are necessary to address the organization’s budgetary constraints. She stated, “Te Whatu Ora has made some good progress towards living within our means, but we are still spending more than we have in our budget. We took immediate steps to stabilize our finances, including working to get the best value for the products we purchase, and pausing or adjusting projects that may not provide immediate benefits.”
However, the Public Service Association, New Zealand’s largest trade union, has raised concerns about the impact of these job cuts and funding recalls. They warn that these actions could hinder progress towards implementing modern IT systems that deliver accurate patient data to clinicians nationwide. Ashok Shankar, the PSA national health sector lead, criticized the cuts as short-sighted and potentially detrimental to the health reforms that were promised.
Last year, Te Whatu Ora revealed plans to scale back ICT expansions due to escalating costs associated with maintaining over 4,000 clinical and business system applications, many of which are either nearing the end of their lifecycle or already obsolete. These cost-saving measures are part of the organization’s efforts to streamline operations and ensure financial sustainability in the long run.
Overall, Te Whatu Ora’s decision to reduce positions in data and digital services is a strategic move aimed at optimizing resources and aligning with budgetary constraints. While these cuts may be necessary in the short term, it is essential for the organization to prioritize investments in critical healthcare infrastructure and technology to support the delivery of quality care to all New Zealanders.
