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The New Zealand government appears to have made targeted yet limited funding for digital health projects this coming fiscal year.
In an announcement, Health Minister Simeon Brown said Te Whatu Ora Health New Zealand will receive a NZ$1.37 billion ($810 million) per annum increase in budget, bringing its total 2025 budget to NZ$32.7 billion ($19.3 billion).
“This additional investment of 7.4% in total funding represents an increase of 6.2% per capita, which will make a real difference to people’s lives, ensuring timely, high-quality care for patients while supporting our frontline workforce who deliver that care every day,” he explained.
Part of this is NZ$447.6 million ($265 million) in funding over four years to implement Te Whatu Ora’s Primary Care Tactical Action Plan, which includes the earlier announced 24/7 digital primary care access project.
The government also committed to funding mental health and addiction telehealth as part of Health’s transition to a multi-agency response to mental distress calls. NZ$27.6 million ($16.3 million) has been earmarked for this five-year transition over four years.
Moreover, the government tapped savings from the terminated COVID-19 advance purchase agreement budget to allot NZ$7 million ($4.1 million) for the improvement of the data and digital infrastructure of the Pharmaceutical Management Agency (Pharmac).
THE LARGER CONTEXT
The limited data and digital funding comes as Te Whatu Ora prioritises frontline services and expanding access to general practice and specialist care.
“It offers small steps but falls short of delivering the bold, strategic investment needed to modernise New Zealand’s health system and unlock the full potential of digital innovation,” said Digital Health Association CEO Ryl Jensen in a comment.
Te Whatu Ora went through a reset last year, which heavily affected data and digital projects and jobs. It took back four years’ worth of funding (NZ$330 million/$200 million) for projects, including the flagship national health information sharing program, Hira, that is now on pause. It had also proposed letting go of nearly a third of data and digital positions; ultimately, it decided to retain 1,460 out of 1,938 roles nationally.
The organisation said the future of its data and digital projects, both existing and planned, will be guided by a decade-long digital investment plan, which is now underway and expected to be released later this year.
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