Digital cuts threaten patient care – HiNZ report

NEWS - eHealthNews.nz editor Rebecca McBeth 

A HiNZ special report details the potential impact of proposed funding cuts to digital health services, with respondents warning of significant consequences for patient care and the healthcare workforce.

The future of digital health in Aotearoa New Zealand – voice of the workforce, is the result of a survey of more than 350 experts in digital health and frontline clinicians, and found that 97.5 percent believe budget cuts will negatively impact or delay improvements in patient care.

The report also identifies opportunities for targeted digital investment that could improve efficiency while reducing costs.

HiNZ conducted the survey in December 2024 in response to a proposal by Health New Zealand | Te Whatu Ora, which would cut $100 million annually from digital services and reduce the organisation’s workforce by nearly half. 

These cuts follow an earlier $380 million budget recall and leave only 2.2 percent of Health NZ’s operational spending allocated to digital health, a figure that falls well below international benchmarks.

Respondents expressed concern that reducing digital investment will lead to system failures that could slow down access to critical care, increase the risk of outdated and unreliable technology, and place additional administrative burdens on clinicians already struggling with inefficiencies.

They reported that these cuts will likely result in longer wait times for both urgent and routine care, with 72.6 percent of respondents predicting delays in services. 

There are also concerns about the potential for increased health inequities, as Māori, Pacific peoples, and disabled communities may be disproportionately affected by the loss of digital tools designed to improve access to care. 

Health professionals warn that reducing investment in digital infrastructure could lead to higher rates of medical errors due to poor data-sharin and more than 90 percent of those surveyed believe digital budget cuts will lead to more frontline workforce leaving the profession or heading overseas.

Respondents were also asked to identify opportunities for targeted digital investment that could improve efficiency while reducing costs. 

Among the key recommendations are the development of a national shared health record to enhance care coordination, the use of artificial intelligence in diagnostics to improve accuracy and speed up treatment, and the expansion of telehealth and remote monitoring services to improve access for rural and high-needs populations. 

Also, the potential benefits of predictive analytics to anticipate demand and improve resource allocation, as well as the implementation of smarter patient flow systems to reduce hospital wait times.

HiNZ chief executive Scott Arrol says international evidence shows that digital transformation in healthcare can lead to significant cost savings and better patient outcomes. 

However, sustained investment is needed and a long-term commitment to integrating digital solutions into the healthcare system.

“There is a growing concern amongst the digital health community that short-term budget reductions could create long-term challenges, ultimately making the system less efficient and placing greater strain on both clinicians and patients,” Arrol says.

Read the full report online.

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