NZ health crisis deepens with trio of top-level resignations - The Front Page

Health Minister Shane Reti, flanked by the Director-General of Health Dr Diana Sarfati, left, and Health NZ chief executive Margie Apa, during the Health select committee hearing, Parliament, Wellington, 03 December, 2024. NZME photograph by Mark Mitchell

‘Chaos’, ‘overstretched’, and ‘a bloodbath’ are a few of the words used to describe New Zealand’s health sector.

The sector is facing the third resignation from its top ranks. Director-general of health Diana Sarfati will finish on Friday — ending her term two years earlier than expected.

She highlighted the “challenge of restricting and unifying an entire health system” and how it was “not to be underestimated”.

Her resignation came soon after that of Health New Zealand chief executive Margie Apa and public health director Nicholas Jones.

We are constantly told the health system is at a crisis point, spending beyond its budget, waiting times getting longer and suffering from widespread staff shortages.

University of Otago professor of public health, Peter Crampton told The Front Page our health system is under tremendous stress.

“I’ve been observing this closely for at least 30 years. I don’t think I’ve seen so much pressure and uncertainty in the health system as I see now.”

New Zealand is driven by its ageing population, which drives the cost of healthcare delivery, he said.

“And that’s no one’s fault, it’s not a bad thing, it’s just a fact. What it does mean is that there is pressure on the Government to deliver.”

Over the long term, Crampton said, we have underinvested in primary care.

“I mean nurses, doctors, and all those people in the community who look after us when we get unwell. That’s where the bulk of healthcare is provided.

“We get sicker. We’re not treated early enough. Then we end up in the hospital system, costing the system more, driving up pressures, stresses, and waiting times in hospitals.

The trio of resignations of health’s higher-ups comes after Health NZ commissioner, Lester Levy, was brought on board last July, tasked with solving an estimated $1.4 billion overspend.

Health Minister Simeon Brown has denied the three are connected. “These people have made their own decisions,” he said.

Crampton said the timings of their stepping down is ‘very unusual’ — especially in the case of Sarfati, who leaves seven days after publicly handing in her notice.

“With those senior roles, we expect the resignation to be announced well in advance of it taking effect and then be time for the system to respond, an interim person to be put in place, and ideally, a recruitment process to be under way.

“None of that’s happened this time. So we don’t know what lies behind that, except this is an unusual circumstance,” he said.

Staff shortages have plagued the sector for years. From GPs closing their books with nearly 40% not taking new patients last year, to nurses being tempted across the ditch by better pay packets and added extras.

Health NZ released its Workforce Plan in December, outlining how gaps will be filled over the next three years. The Government’s already made moves to fund more homegrown doctors and midwives.

Crampton said the country’s dwindling health workforce was one of the top issues in the system — and New Zealand is not unique.

“Is the Government doing enough? Well, the answer has to be no, and I say that with some sympathy for the Government.

“The financing situation for GPs is complex and has been neglected for a long time. Work is underway by Te Whatu Ora Health NZ and by the Ministry of Health to fix that. But, it’s a long time coming.

“At the moment, we have a system distracted by its own changes internally and changes at the leadership level, so I fear that these really important strategic or long-term issues like the health workforce are probably being somewhat neglected,” he said.

Listen to the full episode to hear more about how we could get NZ’s health system back on track.

The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.

You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.