Hospitals asked to make more than $80m in savings by July, RNZ understands

By Phil Pennington of RNZ

The central health agency is asking hospitals to save more than $80 million by July as part of a nationwide cost-cutting drive, according to figures sourced by RNZ.

RNZ has asked Te Whatu Ora - Health New Zealand to confirm the figures, which range from a savings goal of $15.5m in Auckland to between $7m and $9m for four other districts and $3m or less in a clutch of smaller districts.

It has told hospitals they must “live within our means” and clamp down on staff costs because other cost-cutting measures have not gone far enough, as RNZ revealed a week ago.

Health Minister Shane Reti has said this will not take away from the front line for medical care.

On Wednesday, a leaked document published by Newsroom showed Canterbury hospitals had been ordered to slash $13.5m in the next two months.

The latest figures cited to RNZ are for savings ordered at another 11 health districts:

· Auckland $15.5m

· Waikato $13m

· Southern $9m

· Counties Manukau just under $8m

· Waitematā just under $8m

· Capital Coast and Hutt Valley $7m

· Hawkes Bay $3m

· Nelson $3m

· South Canterbury $1.2m

· West Coast $980,000

RNZ has asked Health NZ what savings it has ordered at the other eight medium-to-small districts.

Health Minister Dr Shane Reti. Photo / Michael Cunningham

Health NZ received funding of almost $23 billion for 2023-24.

RNZ has contacted Reti for comment.

- RNZ