26 Apr 2024

Hospitals asked to make more than $80m in savings by July, RNZ understands

3:01 pm on 26 April 2024
Medical equipment

Te Whatu Ora is reportedly requesting hospitals cut more than $80m from their spending. Photo: RNZ / Samuel Rillstone

The central health agency is asking hospitals to save more than $80m by July as part of a nationwide cost-cutting drive, according to figures sourced by RNZ.

RNZ has asked Te Whatu Ora to confirm the figures, which range from a savings goal of $15.5m at Auckland to between $7m and $9m for four other districts, and a clutch of smaller districts at $3m or less.

It has told hospitals they must "live within our means" and clamp down on staffing costs because other cost-cutting measures have not gone far enough, as RNZ revealed a week ago.

Health Minister Shane Reti has said this would not take away from the front line for medical care.

On Wednesday, a leaked document published by Newsroom showed Canterbury hospitals had been ordered to slash $13.3m in the next two months.

The latest figures cited to RNZ are for savings ordered at another 11 health districts:

  • Auckland $15.5m
  • Waikato $13m
  • Southern $9m
  • Counties Manukau just under $8m
  • Waitematā just under $8m
  • Capital Coast and Hutt Valley $7m
  • Hawkes Bay $3m
  • Nelson $3m
  • South Canterbury $1.2m
  • West Coast $980,000

RNZ has asked Te Whatu Ora what savings it has ordered at the other eight medium-to-small districts.

Health NZ was funded almost $23 billion for 2023-24.

Dr Reti said, in a statement: "Health NZ is not subject to the same government directive for savings as some other departments. These are operational decisions made by Health NZ, not the government.

"What Health NZ is doing is finding ways to reduce spending by making day-to-day operational practices as efficient as possible so they can re-invest in the frontline.

"I have been assured that managing clinical risk and sustaining services is always Health NZ's top priority. None of these cost-saving measures will impact the level of care patients receive."

When asked to supply the document or advice confirming that cost-cutting would not impact patient care, a spokesperson for the minister said: The minister meets with officials often and received this assurance from Health NZ verbally.

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