Te Whatu Ora could further cut digital financing
Te Whatu Ora (Health New Zealand) seems to be constantly recalling some digital health funding as resources are diverted back to frontline services.
Last week, the Digital Health Association commented on the unions’ claim as much as NZ$100 million ($61 million) could be cut from Te Whatu Ora’s data and digital initiatives. The cut, he said, comes on top of the NZ$330 million ($200 million) has already been taken from data and digital, including the Hira project, and saved for the 2024 budget.
“That’s almost half a billion dollars cut from a fund that is supposed to strengthen New Zealand’s innovative digital technology sector and bring 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 living within our means. Part of this process is putting more authority back in the regions, closer to the front line,” said Te Whatu Ora chief executive Margie Apa when asked for comment by Healthcare IT news.
However, Jensen believes the cuts will “absolutely impact frontline services”.
“We need to complete important processes that involve talking to our people about budgets and then discussing changes. We will not comment on changes until they have been communicated to our people and the affected teams and employees 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 GREATER CONTEXT
Before the 2024 budget was announced, it was decided early this year that part of the emergency funding for digital health projects would be shifted to upgrades in healthcare payroll systems, especially those nearing end of life.
Late last year, Te Whatu Ora said he wanted to to facilitate ICT expansions and focus on “fewer, more robust systems” as the costs of maintaining a “patchwork” of legacy clinical and business systems applications had increased.
Financing for free telehealth services were also discontinued this year to achieve budget savings. This is also because the Health Quality & Safety Commission has found that healthcare providers are continuing to offer in-person services and the introduction of telehealth in New Zealand has never taken off, even during the recent pandemic.