The government is funding 50 new senior doctors, and more nurses, to fix critical shortages in rural, mental health, maternity and critical care specialities.
Health New Zealand estimated the new frontline doctors would cost $20 million, depending on the specialities of the doctors and their experience.
Funding of $10m will be made available for new nurses.
Speaking at the beleaguered Whangārei Hospital, Health Minister Shane Reti announced on Tuesday the investment would reduce wait times, improve patient safety and support vulnerable specialities like dermatology that needed more clinical staff.
"This funding will help fill critical workforce gaps and support the health workforce to deliver on the Government's health targets, particularly in regional or provincial hospitals.
Health Minister Shane Reti says the investment will reduce wait times, improve patient safety and support vulnerable specialities Photo: RNZ/Nick Monro
"While Health New Zealand has made significant progress recruiting nurses in the last 12 months, there are critical shortages.
"Setting aside funding specifically to employ senior specialist nurses and allied health professionals will help sustain services that are struggling because of a lack of specialist skills," Reti said.
A separate $12m fund was being set up to pay for minor repairs, replacement appliances, and new books and toys for children undergoing treatment.
Reti said it would be up to each region to decide how to spend the money, "but I expect them to be able to access it quickly and easily, so they can get recruitment and minor repairs underway", Reti said.
Joining Reti was Health NZ commissioner Lester Levy, who was appointed in July to solve an estimated $1.4 billion overspend in the health budget.
Levy said the announcement would funnel more nurses into regional hospitals and reduce patient waiting times.
Today's plan were designed to devolve decision making closer to the ground, and clinicians would have more influence in this, he said.
Health NZ wanted to break down bureaucracy, where it was taking so long to get something fixed, he added.
Asked how Health NZ would recruit in regional areas, where they were already struggling to fill existing vacancies, Levy said they were looking at different and new ways of employing people, and already turnover was down because salaries had increased "significantly".
Asked whether Taupō would be a priority for the new staff, he said regional hospitals would need to make a case for where vacancies would be filled, and any new positions needed to have a direct impact on reduced waiting times and improved patient safety.
"We'll see where the best cases can be made."
Applications for new staff could be submitted from Wednesday, he said.
Asked where the staff would come from, he said this would be a mixture of overseas clinicians and returning Kiwis.
Reti added they were looking at the visa approvals process to expedite the arrival of overseas doctors and nurses.
Asked about the budget blowout and how the recruitment of new nurses would make that worse, Levy said it was not a matter of "having it both ways", rather providing accessible, quality services that were affordable.
New Zealand was performing well considering its per capita expenditure on health, Levy said.
Asked about the Dunedin Hospital roof collapse, Reti said the funds for its repair had already been approved by the commissioner.
RNZ reported on Monday that patients who need hospital treatment are increasingly not even making waiting lists. An excerpt of a letter to a GP from Palmerston North Hospital's orthopaedic clinic earlier this year - obtained by RNZ - confirmed some referrals are being knocked back due to "lack of resources".
Meanwhile Te Whatu Ora accepted more than 400 voluntary redundancies in October, as part of efforts to cut costs to ease a huge deficit. On Monday, staff in its IT department were told of a new proposal to disestablish more roles at the agency.
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