Budget 2026 commits $450 million to digital health

NEWS  - eHealthNews editor Rebecca McBeth

Budget 2026 commits more than $450 million to digital health, including $153.6 million in funding for cybersecurity over the next four years and $300 million to deliver the first three years of the Health Digital Investment Plan.

The $300 million in funding for the Health Digital Investment Plan (HDIP) will support work such as replacing ageing devices, modernising radiology systems, and upgrading core IT platforms.

The 10-year plan was announced by Health Minister Simeon Brown at Digital Health Week 2025 along with the creation of a new Centre for Digital Modernisation of Health to deliver it.

Budget documents say $100 million in funding for each of the next three years has been reprioritised from capital to operating funding for the HDIP.

Funding for cybersecurity is set aside at $34.2m in 2026/2027 then $39.8m annually for each of the following three years, “to address Health NZ’s cyber security risk profile by maintaining current protections and providing resources and specialist skills to address threats and vulnerabilities”.

The cybersecurity funding includes support for primary care and comes following a series of high profile patient data breaches over the past six months, including at digital medication management platform MediMap and at Manage My Health (MMH).

The Privacy Commissioner this week said both the patient portal provider and Health NZ have breached the Privacy Act in the case of the MMH breach.

Health Minister Simeon Brown says the government is, “taking decisive action to strengthen cyber security, safeguard patient data, and ensure frontline services can continue operating without disruption.”

The extra $153.6 million investment includes; strengthening 24/7 cyber security monitoring and response capability; expanding specialist cyber security expertise; delivering critical security upgrades across health systems; and strengthening cyber security oversight in primary care.

“This is about protecting patients and maintaining trust in our health system. New Zealanders should feel confident their health information is secure and that frontline services are resilient against cyber threats that could otherwise disrupt care,” he says.

HiNZ chief executive Alex Kemp says it is encouraging to see the government making a substantial commitment to digital health, which reflects the shift towards digital being a core enabler of care.

“The focus on both digital infrastructure and cybersecurity shows an understanding that these areas are fundamental to a modern, resilient health system,” she says.

"The key now will be the delivery to ensure this investment has real impact for those on the frontline. We have seen too many well-intentioned initiatives fall short because the implementation did not translate into practical, meaningful improvements for healthcare workers and patients.”

Chief executive of the Digital Health Association Stella Ward says the $300 million funding for HDIP is the kind of sustained commitment a 10-year programme requires. 

“A modern, connected health system can't be built on one-year allocations – and today's Budget acknowledges that. Replacing aging devices, modernising systems, and upgrading core IT platforms all support the health workforce in their daily mahi supporting patients,” she says.

Chair of General Practice New Zealand (GPNZ), Bryan Betty says the cyber security announcement aligns strongly with GPNZ’s recently released digital security position paper.

“Digital safety is patient safety. With the commitment announced today we expect to see system-wide improvements, strengthening our ability to keep sensitive patient information safe and secure,” he says.

Brown says Budget 2026 provides more than $5.8 billion in new Vote Health operating funding across the forecast period, including a $1.37 billion annual uplift to help meet frontline cost pressures and support growing demand across the health system. 

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