The Government will reinstate a board at Health New Zealand following last year’s appointment of Lester Levy as Commissioner and will outsource more elective surgeries to the private sector.
Health Minister Simeon Brown made the announcement in a wide-ranging speech today, saying there would be a transition time as the recruitment process for a board began.
He also revealed a $50 million spend on reducing the backlog of people waiting for elective surgeries by working with the private sector.
Brown said he had directed Levy to “accelerate the shift” to local decision-making and service delivery and set a requirement for local delivery plans to be developed by July.
Health NZ had released its delivery plan to reflect a new letter of expectation from the Government, which Brown said “inherited a health system in a state of turmoil”.
“Now that the plan is set, it is time to begin the process of transitioning to traditional governance. In the coming weeks, nominations open for the new board,” he said.
“I’d like to take this opportunity to thank the commissioners for their work to date and I look forward to working with them as they deliver on their plan and as we transition to a board.”
It follows calls from Labour to bring back a board last week.
Levy’s controversial term as commissioner of Health NZ has been marked by job losses and attempts to balance the health mega-agency’s budget. His term began only seven months ago, and he departs amid a tumultuous time for the health sector.
Last month, chief executive of the agency Margie Apa stepped down several months before her term was due to end.
Director-General of Health Dr Diana Sarfa also resigned from her role in February.
While staff cuts are on the way, the new commissioner of Health NZ is assuring frontline staff that their jobs are safe (Source: TVNZ)
It followed Prime Minister Christopher Luxon’s sacking of his first health minister, Dr Shane Reti, who was then replaced by Brown in January this year.
In a statement, Levy said his agency’s updated reset plan was released earlier today.
“I am committed to rolling out the delivery plan as Health NZ returns to a traditional governance structure,” the Health Commissioner said.
“We welcome the Minister of Health’s plan and have a clear direction for the next 16 months and beyond and a renewed service delivery impetus.
“With the changes we are putting in place we will build on the good progress we have made recently by moving more decision-making and resources closer to communities where they can make the biggest improvements for patients.
“We’re unlocking external system capacity, bringing on new theatres in our hospitals and redirecting funding to increase access to GP services.
“Beyond this, we’re doing more to focus activities on achieving all the health targets and have set clear delivery expectations.
“A new target, focused on primary care, will be created.”
Govt wants more private sector involvement in health
In his speech, Brown also said he expected further outsourcing of elective surgeries to the private sector in a bid to tackle health waitlists.
“Long term, I want as much planned care as possible to be delivered in partnership with the private sector, freeing public hospitals for acute needs,” he said.
“However, this needs to be done in a way which is mutually beneficial for our public health system and our workforce.”
It came after he revealed a $50 million spend to carry out an extra 10,579 elective surgery procedures “between now and the middle of this year”.
The Prime Minister has made several changes to his cabinet, which includes stripping Reti of his health portfolio. (Source: 1News)
The extra surgeries would come from working with the private sector and private hospitals, with “work also underway now to negotiate longer-term agreements.”
Brown said: “At the moment Health NZ undertakes both elective surgery, and also responds to acute need, with planned elective surgery often being disrupted by acute need, leaving patients waiting for treatment and waitlists continuing to grow.
“At the same time, the small amount of planned care that is outsourced to the private sector is often done on an ad hoc basis, meaning Health NZ is paying premium prices.
“This practice must stop. Kiwis waiting in pain for an operation aren’t worried about who is delivering the operation, they just want it done as quickly as possible.
It comes after it was revealed Dunedin Hospital will be downgraded after a budget blowout. (Source: 1News)
“I want to see Health NZ both lifting its own performance on elective surgeries, but also partnering closely with the private sector to ensure we can get on top of the waitlists and get Kiwis the operations they need as quickly as possible.
“By partnering with the private sector, we can ensure people get the care they need, and Health NZ can achieve value for money through long-term contracts with the private sector.”
The Health Minister was speaking to BusinessNZ’s Health Forum in Auckland.
Reaction
Resident Doctors’ Association national secretary Dr Deborah Powell told 1News she felt relief at the news, describing Levy as a “wrecking ball”.
“It’s a complex industry, and you need good people, and it’s really frustrating when you see them go or they are forced out,” she said.
The union official said that cuts to backroom staff, which occurred during Levy’s tenure as commissioner, had impacted on the delivery at the grassroots.
Meanwhile, patient advocate and health campaigner Malcolm Mulholland said the commissioner’s time would be remembered as “absolute havoc and mayhem”.
He welcomed a return to a board and said he understood the need for an increased use of private services in the short-term, but said it couldn’t be a long-term solution in health.
