Health Minister Dr. Shane Reti health minister acknowledged that Health New Zealand’s financial deficit for the year ending June has exceeded expectations.
A preliminary assessment revealed a staggering $934 million deficit, falling almost $1 billion short of the anticipated $54 million surplus.
The recently released quarterly performance report for June highlights several factors contributing to the shortfall, including:
. $529 million of pay equity funding not being received
. A workforce exceeding budget by 4,400 staff, costing $406 million
. $193 million lost to expired COVID-19 stock
. $172 million spent on Holidays Act remediation
. $40 million less in projected savings
Dr. Reti admitted the results were “worse than expected,” attributing some of the financial strain to mismanagement while noting that the pay equity funding will be included in the current year’s budget.
