New Health Commissioner Prioritises Reduced Wait Times and Compassion

• Professor Lester Levy appointed as Health NZ Commissioner, focusing on reducing waiting times.
• Health Minister Shane Reti addresses financial concerns and oversight issues in the health sector.
• Health New Zealand restructuring aims to devolve decision-making and improve regional healthcare.

Professor Lester Levy has been appointed as the new Commissioner of Health NZ, with a focus on reducing waiting times, boosting productivity, and fostering compassion in the healthcare system. The announcement, made by the government on Monday, marks a significant shift in leadership and strategy for the organisation.

Health Minister Shane Reti highlighted serious concerns about financial oversight and budget management within Health NZ. The organisation is currently spending $130 million over its budget monthly, which could result in a $1.3 billion deficit by the financial year’s end. This situation prompted the government to restructure Health NZ, including appointing Levy as Commissioner and adding four regional deputy chief executives to localise decision-making.

Levy emphasised that his top priorities are to reduce waiting times, increase productivity, and ensure compassionate care across the healthcare system. He stressed the need for efficient use of resources, noting that “productivity is not an economic or financial construct … productivity is a clinical construct.”

The $1.3 billion deficit, according to Levy, is “entirely unacceptable” given the significant investment in healthcare and staffing levels. He described Health NZ as “totally bloated” with bureaucracy and committed to addressing these issues to refocus on patient care.

Health NZ was created by merging 20 District Health Boards under the previous Labour government, aiming to cut costs and reduce inconsistent care across regions. Current chief executive Margie Apa noted that while the merger’s full benefits were still being realised, particularly with the challenges posed by Covid-19, the organisation now had more resources to enhance regional healthcare delivery.

The appointment and restructuring have sparked a political debate over the management and accountability of Health NZ’s budget and staffing. Prime Minister Christopher Luxon and Labour leader Chris Hipkins exchanged views on the financial and organisational performance of Health NZ, with Luxon pointing to excessive bureaucracy and Hipkins criticising the government’s centralisation of power.

Health Minister Reti attributed the overspending to back-office staffing, poor procurement processes, and a lack of oversight. He noted that the addition of 2,500 administrative staff since 2018 had not led to improvements in health metrics.

The debate also extends to the adequacy of funding in the health sector. Sarah Dalton, executive director of the Association of Senior Medical Specialists, argued that the system is underfunded and lacks sufficient staffing to meet public needs. Former Health NZ chair Rob Campbell supported this view, suggesting that broader issues of management and funding need addressing.