‘Shocking’ scale of data and digital cuts will impact patient care - PSA

NEWS - eHealthNews editor Rebecca McBeth

A plan to slash nearly half of all data and digital roles at Health New Zealand | Te Whatu Ora will directly impact patient safety, make the jobs of frontline staff harder, and increase the system’s vulnerability to attack, the country’s largest trade union says.

Health NZ has this week released consultation documents for four business units; data and digital; the national public health service; hauora Māori health service; and Pacific health, with more to come in the New Year.

The national organisation’s savings target has risen to $2 billion for the next financial year, as outlined in the most recent quarterly report, with around $100 million of that due to come from data and digital services.

The data and digital consultation document details plans to slash 1120 net roles from the directorate, which equates to 47 percent of the current workforce.

eHealthNews understands 470 roles are already vacant in data and digital that will not be filled. Current FTE is 2400 and the aim is to get to 1285.

Public Service Association (PSA) Te Pūkenga Here Tikanga Mahi national health sector lead Ashok Shankar describes the unbelievable scale of the proposed cuts as shocking and shameful, saying they will have an enormous impact on the frontline.

“Healthcare these days is very dependent upon IT systems: if the IT systems do not function well, then having a lot of clinicians will not make much difference,” he says.

“We will have huge gaps in information and it will make the lives of clinicians very difficult. It will also increase patient risk, because without data and information, good decisions cannot be made.

The latest proposed cuts are on top of the $380 million earmarked for data and digital health initiatives over the next five years that was recalled in the 2024 budget.

"We already spend far less than other countries on public health IT systems,” Shankar says.

"These cuts mean Te Whatu Ora will only do the bare minimum, putting band-aids on an already failing system and not proceeding with planned upgrades.”

He says the PSA has serious concerns about the system’s ongoing ability to run its “antiquated” IT systems with increasing potential for cyberattacks and data breaches, similar to the costly Waikato DHB cyberattack.

“This is just about saving money,” says Shankar.

"When the union deals with changes there is always a vision of what an employer wants to achieve, so while you may not agree with it, you can see that somebody has a plan. At the moment there is no plan, this is just about how can we save $100 million and the easiest thing to do is slash and burn.”

Health NZ chief executive Margie Apa says the proposed changes involve devolving more functions to regions, “to strengthen frontline clinical delivery to patients and communities”.

She says feedback is being sought from staff on “how we reset our functions to get back to budget while also taking opportunities to strengthen how we work in regions.

“We know working through these changes will be unsettling for affected staff and acknowledge a large number of positions are proposed to be removed,” says Apa.

She adds that Health NZ will also continue to invest in IT systems and data and digital services.

Apa announced the role of chief data and digital was being disestablished in October and Leigh Donoghue departed the organisation in November.

Donoghue tells eHealthNews, “I wish Health New Zealand every success in a tough fiscal environment but this is not digital modernisation.

“The focus here is on cutting IT spend and support staff rather than investing to improve healthcare productivity and performance. I feel for the people impacted - consumers, clinicians and committed IT staff who need and deserve better data and digital systems,” he says.

“Hopefully this focus re-emerges in time lest we fall further behind.”

The consultation document, obtained by eHealthNews, says that at the core of the new structure are four regional directors who will manage digital services in their respective areas and report to the deputy chief executives, with a dotted line to the chief information technology officer.

Some capabilities will remain at a national level including; cybersecurity, investment strategy and planning, asset management, digital identity and national products, platforms and channels.

The document says the organisation proposes to disestablish many more roles than it needs to reduce in order to allow kaimahi a fair chance to reapply for newly created roles.

Shankar says, “we just feel so upset and sorry for what people are going through individually during a time like this.

“The impact on staff is devastating. The only solution for many IT workers will be to leave the country,” he says.

Minister of Health Shane Reti says he “remains committed to data and digital technologies that support improved frontline services and new models of care.”

Health NZ says no final decisions will be made this side of Christmas.

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