Health NZ makes progress on financial recovery

Health Minister Dr Shane Reti says Health New Zealand is making encouraging progress recovering from a financial shambles left behind by the previous government.

"Health NZ reported today that its revised budget for 2024/25 is a $1.1 billion deficit," Dr Reti says.

"That's significantly lower than the $1.76 billion deficit they were heading towards before our Government had to step in.

"Labour created this crisis for the New Zealand health system through a lack of oversight and governance. As a result, we've been managing the havoc created through their botched reforms.

"Ayesha Verrall is a crisis denier who refuses to accept that she ever made any mistakes. In the Health Select Committee hearing this morning, she launched a pre-prepared diatribe of criticism, which was laughable given Labour's mismanagement is at the centre of health's woes.

"Health NZ and all of the health workforce are making encouraging progress and I will continue to support the hard work of the Commissioner, the Chief Executive and the effort going on to reset the agency.

"Our Government is now spending more on health than any other in New Zealand's history, at around $30 billion a year.

"The lion's share of that $30 billion goes to Health NZ. They too must live within a budget, and ensure money isn't wasted on bureaucracy but instead delivers better health outcomes for New Zealanders.

"Health NZ is currently estimating it will get back to budget by the end of the 2026/27 financial year.

"I look forward to further progress from it in meeting those projections, while continuing clinical safety and good patient outcomes.

"We still have a long way to go in resetting the system so that it is fully functioning and works to deliver for all New Zealanders.

"As Minister, I am committed to supporting Health NZ in delivering on that," Dr Reti says.

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