Life's work to mix business with empathy

By ANGELA GREGORY

In anticipation of his first foray into a health authority leadership role 10 years ago, Graeme Edmond declared he had the ability to ask people what they wanted.

The successful businessman and former director of a billion-dollar worldwide pharmaceutical firm played down his non-medical background when he was appointed to head the Mid North Island Regional Health Authority in 1993. He conceded in a Herald interview that he was a hard-nosed businessman, but believed he could balance that with empathy.

"I may not have the medical background but I certainly have the ability to ask people what they want."

Mr Edmond has a bachelor of commerce and administration degree with first-class honours from Victoria University. He lectured in business administration, and in 1975 moved to England to join SmithKlineBeecham, where by 1984 he was a director and controlled sales and marketing in 54 countries. In 1986, he returned to New Zealand to work for the Woolrest Corporation.

In his role at Midland Health Mr Edmond faced the ongoing difficulties of managing health services under tight financial constraints, and wore the backlash over his axing of Plunket contracts.

When in July 1996 he took up the reins at Auckland Healthcare, he said his combination of private and public health sector skills would help him to successfully manage the underfunded agency.

Later that year he got into a row with the then Health Minister, Jenny Shipley, who accused him of conducting funding negotiations through the news media.

The opposition Labour Party took pot-shots at his salary after a bonus lifted his annual pay above $245,000.

In 1998, Mr Edmond called for urgency to proceed with a major redevelopment of hospital services and facilities, the funding for which was approved a year later.

But the resulting restructuring of central Auckland hospitals unleashed a tide of resentment from medical staff, who felt shut out of the process.

In 2002 the Health Ministry baulked at Auckland District Health Board's proposed $86 million deficit.

Mr Edmond started asking tough questions about how much the country should be paying for the specialisation at Starship, the country's premier children's hospital.

Meanwhile, new chairman Wayne Brown said he was unimpressed with the $400 million strategic plan developed by Mr Edmond and the previous board.

In May, Mr Edmond urged New Zealanders to debate how high tech their hospitals should be and how much they were prepared to pay. With a $55 million deficit forecast this year and a Government directive to end financial losses by July 2006, Mr Edmond said the board had to revise its level of medical specialisation to save money.