28 Feb 2024

Te Whatu Ora will need five years to fix outdated hospital HR systems - report

5:30 pm on 28 February 2024
Healthcare people

Fixing the HR systems in NZ's hospitals would take five years at least and was "unfunded", a report has warned. Photo: 123rf

Te Whatu Ora will need a whole lot of extra money over the next five years to fix outdated hospital HR systems, a new assessment warns.

The report - released today - dates from November, and was the first about the progress of the health reforms given to the new Health Minister Shane Reti.

It said the agency had inherited 200 human resources systems for hiring, rostering and paying staff.

"This has created a very high-risk area for the organisation with the risk of one-off failure of one or more payroll or rostering systems (e.g. by a payroll failing to run)," said the 65-page report by an independent committee that advises the minister.

A fix would take at least five years at least and was "unfunded".

"In this assessment interviewees expressed concern on a number of fronts from (among other things), cost pressures... the effects of inflation, unfunded but critical infrastructure investments (e.g. payroll)...

"Amalgamation of the HR system will likely take at least five years and will require new budget support as it is not possible to fund this activity within baselines."

The government would have to increase its investment and support to avoid another major IT debacle like the police INCIS and school Novopay tech failures of past years, it warned.

Te Whatu Ora has one of the largest, most complex workforces in terms of salary, contractual and rostering arrangements, "which means that its HR and payroll solution must be supported appropriately going forward and not be compromised".

An amalgamated HR system/national payroll solution is being designed.

It remains unclear what resources it will take to implement any changes, but it will certainly require a lot of input from IT experts, who are typically engaged by public agencies as contractors and consultants at high cost.

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