44554 (2024). Hon Dr Ayesha Verrall to the Minister of Health

Written Question
Published date: 07 Aug 2024
44554 (2024). Hon Dr Ayesha Verrall to the Minister of Health: Does he stand by his statement that he “…got some early signals when I was first appointed to the role at the end of last year…” regarding overspending at Health New Zealand, if so, in what meetings, if any, did he receive these early signals, by date and meeting attendees?
Hon Dr Shane Reti: I met with Health New Zealand on December 12, 2023 to discuss 2023/24 performance, including the delivery of their savings plan in preparation for Budget 2024. In that meeting, I noted the need to meet monthly savings targets to offset their cost pressures. I received written assurance that they could continue to offset cost pressures by planned savings, good budget management and revenue. With this assurance in place, it was extremely concerning when Health New Zealand’s deficit first appeared in February 2024, reported in March 2024. This had grown to over $130 million by May 2024 and forms the basis for ongoing overspend concerns.