Budget 2024 recalls data and digital health funding

eHealthNews.nz: National Systems & Strategy

Budget 2024 recalls data and digital health funding

Thursday, 30 May 2024

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NEWS - eHealthNews.nz editor Rebecca McBeth

More than $330 million earmarked for data and digital health initiatives at Health NZ Te Whatu Ora over the next four to five years will be returned as part of today’s budget.

More than $186 million dedicated to ‘Data and Digital Foundations and Innovation’ and $144 million for ‘Data and Digital Infrastructure and Capability – Enabling Health System Transformation’ up until 2027/ 2028, has been identified as part of savings initiatives.

However, the Budget Summary of Initiatives says funding will be returned pending work to prepare “investment-ready business cases for future investment”.

Health Minister Shane Reti tells eHealthNews that data and digital funding is being returned from contingencies where there was no certainty the funding would be used within the upcoming financial year.

“The new 10-year Infrastructure and Investment Plan will be available at the end of the year and will guide further digital investment,” he says.

He adds that Health NZ will continue with its data and digital program including priority projects such as cybersecurity, payroll/rostering and the Auckland Hospital patient administration system.

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The $330m in savings comes from funding established in Budgets 2021 and 2022.

The 2022 budget included funding for Hira tranche two as well as data and intelligence, digital enablement and innovation, and data and digital foundations

Remaining operating funding of $186 million and capital of $50 million will now be returned, pending future business cases, the Budget documents say.

The ‘Data and Digital Infrastructure and Capability – Enabling Health System Transformation’ funding was established in Budget 2021 to “enable investment in data and digital infrastructure and capability needed to implement health system reforms and improve health system performance”.

The 2021 Budget promised $400 million investment in data and digital, including up to $116 million over the next four years to transform the Ministry's Health Sector Agreements and Payments systems.

Funding for tranche three of this programme of work has now been “reprioritised”, returning around $50 million over the next four years.

Funding has also been taken from the Health NZ payroll system remediation and stabilisation programme and a new IT platform to support the assisted dying service.

Digital Health Association chief executive Ryl Jensen says the decision is concerning and she will be discussing the details and implications with Health NZ.

“We need to better understand the context to that funding decision and what it means for the sector,” she says.

Reti says that overall health will get a significant funding boost of more than $16 billion across three Budgets, directed at frontline services such as emergency departments, primary care, medicines and public health.

“Our Government has set ambitious targets for the health sector. We are committed to improving the frontline health services that New Zealanders rely on, with shorter wait times for assessment and treatment,” he says.