Te Whatu Ora (Health New Zealand) is proposing to let go of about a third of positions in data and digital.

It contemplates cutting approximately 653 full-time-equivalent roles – excluding vacancies – from Digital Services, accounting for 33.7% of their current number.

That represents the largest job reduction among services; the government also proposes to lay off 49 jobs at Pacific Health, 55 at the National Public Health Service, and around 15 positions at Hauora Māori Services. 

THE LARGER TREND

Te Whatu Ora has been cost-cutting since the beginning of the fiscal year. It first recalled up to NZ$330 million in funding for digital health initiatives, including the Hira project, which has been paused. Some savings were later revealed to be diverted towards upgrading healthcare payroll IT systems. Funding for some free telehealth services was also cut. Moreover, the government looks to recall NZ$100 million more from digital health to fund frontline services.

"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," chief executive Margie Apa said last week.

"We took immediate steps to stabilise 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."

Public Service Association, New Zealand's largest trade union, warned about "going back to the past" with these proposed job cuts and funding recall. 

"The promise of the health reforms, including a modern fit-for-purpose IT system that delivers accurate data on patients to clinicians no matter where in the country, is being scuttled by these short-sighted cuts," Ashok Shankar, PSA national health sector lead, claimed. 

Late last year, Te Whatu Ora disclosed its plan to east ICT expansions as costs had mounted to maintain over 4,000 clinical and business system applications, with many close or already at their end of life.