Risks to patients of health IT cuts laid bare in explosive report ignored by Govt.
The Government ploughed ahead with slashing Health NZ's IT workforce, despite being told of the risks to patient care, an explosive internal report reveals.
The report – 'End user impact of digital change - consequences' was obtained by the PSA under the OIA and was prepared around March 2025 as Health NZ Te Whatu Ora refined proposals to almost halve its IT workforce.
"The report is a crystal-clear warning that cutting the jobs of IT experts will increase risks to patients - and that was ignored by Health NZ in the headlong rush to make cuts ordered by the Government," said Public Service Association Te Pūkenga Here Tikanga Mahi National Secretary Fleur Fitzsimons.
The Digital Services workforce has been reduced by nearly 1000 roles by the Coalition Government.
The report, prepared by Health NZ's Clinical Quality and Safety Committee, assesses the impacts of the of the original November 2024 proposal to cut the Digital Services workforce by 44% from 2400 to 1285. In April 2025 a new Digital Services structure was confirmed with 1460 roles, a reduction of 940 roles, a 39% cut.
It found that the proposed cuts would increase 'overall clinical and operational risks' that 'will materially impact patient care'.
"This is an explosive document that should ring alarm bells across the health sector. It shows that the risks to patient care from cuts to Health NZ's digital services team were known and expected.
"IT plays a critical role across every aspect of health care, from operating theatres to referrals, clinical test results and payroll, yet the Government was prepared to gamble with patient care, all to save money."
IT outages are now ever present in our health system - the risks were sharply highlighted in January when clinicians across hospitals in Auckland and Northland were forced to use paper-based systems and whiteboards overnight and again last week when Waikato Hospital staff were unpaid for 24 hours.
"The buck stops with Health Minister Simeon Brown. He must take urgent action to invest in IT upgrades and IT specialists, or the impacts will be tragic. The underfunding of public health has to stop."
In light of the report the PSA is renewing its call for the Government to:
- Immediately review funding for health digital services and IT infrastructure
- Admit its mistakes in cutting digital services expertise
- Commit to properly resourcing IT system upgrades and maintenance