17 Jul 2024

Changes to Health NZ governance and structure underway, Seymour says

6:45 pm on 17 July 2024
David Seymour talks to media following the Government's release of their budget

Photo: RNZ/Samuel Rillstone

The governance of Health New Zealand is set for a refresh, with Acting Prime Minister David Seymour calling its board "quite chaotic."

Seymour - who is also Associate Health Minister - said Health New Zealand had "serious challenges," and clinicians were upset about the circumstances.

"I don't think they were left in a good shape by the previous government. And I don't think the board that they have has been doing a good job of managing their costs, or managing the sector," he said.

The board has rapidly shrunk from seven members to two, with two members resigning and three others opting not to serve another term.

One of those who decided not to continue was former National cabinet minister Amy Adams.

"I made the decision earlier this year as it had become clear to me that I was not able to advance the changes that I believe need to be made," Adams posted on Facebook last month.

Ministry of Health deputy director of general governance and executive services Sarah Turner confirmed Adams' term expired at the end of June, along with the Vanessa Stoddart and Dr Curtis Walker.

Naomi Ferguson and Dr Jeff Lowe have chosen to depart the board early, more than a year before their terms were set to expire.

It leaves just Roger Jarrold and new chairperson Professor Lester Levy left on the board.

Seymour said Health Minister Dr Shane Reti would have more to say about Health New Zealand's governance and structure "very soon".

He said the government was not considering breaking Health New Zealand up in any way, but changes to its governance and structure were underway.

A spokesperson from Reti's office said since the appointment of Levy in May, the minister had had a number of discussions around the performance of Health New Zealand.

"As he said at the time of Professor Levy's appointment, the challenges Health NZ has faced are a result of the poorly planned health reforms of the last government and highlighted to the minister the urgent need for transformation," the spokesperson said.

"It's also significant to point out that the appointment of a new chair was in addition to the previous appointment of a Crown observer and a new board member with specialist financial expertise. All these measures have been part of the government's plan to put Health NZ on a better footing."

The spokesperson said Reti was considering a range of further options to refresh the board.

Turner said the process to refresh board governance had started in May, with Levy's appointment.

She said the next board meeting was scheduled for August, and efforts were well underway to implement the new governance before then.

Labour's health spokesperson Dr Ayesha Verrall said it was an "uprecedented" change, and to lose all but two board members in such a short space of time showed a lack of confidence in the government.

"I really feel for those members of the board, who are incredibly professional and committed. But the government's pulled the rug out from underneath them by not keeping up the funding for Health New Zealand with inflation and population growth," she said.

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