Health workers say budget cuts are costing the public system even more

The Health Commissioner’s assertion during the parliamentary scrutiny week that “excessive spending” was to blame for Te Whatu Ora’s financial crisis has outraged health professionals and their unions.

Health NZ reported a deficit of $722 million for the 2023-24 year on Tuesday and forecast a loss of $1.1 billion for the current financial year.

During a six-hour marathon hearing of Parliament’s health select committee on WednesdayProfessor Lester Levy told MPs Health New Zealand had hired more staff than necessary but “productivity” had fallen.

“Our system has the elasticity to improve its performance within the resources we already have, and we should make sure we achieve this before seeking additional funds,” he said.

“Because the reality is that additional funds have been provided and the service has not improved.”

Cost cutting adds to costs – union

However, union leader Dr Deborah Powell – who represents resident doctors and allied health, technical and scientific workers – said indiscriminate cost-cutting and layoffs were pushing Health New Zealand further into the red.

“And that’s because the process itself creates more costs. It puts a lot of stress on all of us and doesn’t solve the problem.

“In my opinion he is wrong. We are underfunded and what is happening now is only making the situation worse.”

Many layoffs are not “layoffs” in the true sense of the word because the work still needs to be done, she said.

“For example, we had a clinician, who was in a leadership role one day a week and four days in clinical practice, who took voluntary redundancy.

“So we lost those four days of clinical practice – in a shortage specialty – and they have to bring in a replacement.

“We fired someone and then replaced them with someone at a higher hourly rate.”

The “hiring freeze”, capital spending cuts and voluntary departures have not reduced the deficit – but are making the system less efficient and putting pressure on remaining staff, she continued.

“Because we are sorely understaffed – and this is becoming even more true with cost cutting – annual leave is increasing. So this represents a significant liability on the books which will eventually have to be paid or given to people in some way or form. ‘another one. “

Northland emergency doctor Gary Payinda, speaking in a “personal capacity”, said it was infuriating for health workers to learn the problem was due to overspending.

“If you set a budget that cannot support the needs of doctors in hospitals and that cannot support the needs of nurses with a safe staffing level, then your budget was not a legitimate budget. It was an imaginary budget .”

The $2.1 billion in tax cuts given to homeowners over the next four years could have solved many health problems, he said.

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