Health NZ admits errors led to claimed deficit – Labour

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Health New Zealand has exaggerated its deficit to justify job cuts.

The agency today revealed โ€œaccounting judgement errorsโ€ that have led to a deficit that has been used to justify wide-ranging cuts to staff and services.

โ€œThe anticipated redundancies and holiday pay were used to exaggerate the deficit, which is in turn used to justify wide-ranging jobs cuts,โ€ Labour health spokesperson Ayesha Verrall said.

โ€œHealth NZ was forced to correct their accounts by the Auditor-General, their Chief Financial Officer has left, and their finance team has been tied up in non-disclosure agreements. This is all highly unusual.

โ€œDecisions about which jobs will be cut havenโ€™t even been made yet, so what justification can the Government have for trying to lump those costs in a year early?

โ€œThe Government has manufactured a crisis to justify cuts to the health system, and New Zealanders are feeling it on a daily basis.

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โ€œWeโ€™re hearing constantly from people who canโ€™t get the care they need and staff tell us theyโ€™re blocked from hiring to meet patient needs.

โ€œJust on Monday the Government showed they have made no progress on their targets to reduce wait times for emergency departments and elective surgeries.

โ€œToday, the government-appointed Health NZ Commissioner Dr Lester Levy also told select committee there were no cuts to services.

โ€œItโ€™s astounding that the person appointed to steer Health New Zealand is so out of touch with whatโ€™s happening inside the health system,โ€ Ayesha Verrall said.