Risks To Patients Of Health IT Cuts Laid Bare In Explosive Report Ignored By Government – PSA
They knew the risks — and they did it anyway.
An internal report warned that cutting Health NZ’s IT workforce would increase risks to patient care. Not might. Would. And yet the cuts went ahead — leaving a health system already under pressure even more exposed.
The Government ploughed ahead with cuts to Health NZ’s IT workforce, despite being told of the risks to patient care, an explosive internal report reveals.
The warning that was ignored
The report – ‘End user impact of digital change – consequences’ was obtained by the PSA under the OIA and was prepared around March 2025 as Health NZ Te Whatu Ora refined proposals to almost halve its IT workforce.
“The report is a crystal-clear warning that cutting the jobs of IT experts will increase risks to patients – and that was ignored by Health NZ in the headlong rush to make cuts ordered by the Government,” said Public Service Association Te Pūkenga Here Tikanga Mahi National Secretary Fleur Fitzsimons.
The Digital Services workforce has been reduced by nearly 1000 roles by the Coalition Government.
The report, prepared by Health NZ’s Clinical Quality and Safety Committee, assesses the impacts of the of the original November 2024 proposal to cut the Digital Services workforce by 44% from 2,400 to 1285. In April 2025 a new Digital Services structure was confirmed with 1,460 roles, a reduction of 940 roles, a 39% cut.
It found that the proposed cuts would increase ‘overall clinical and operational risks’ that ‘will materially impact patient care’.
“This is an explosive document that should ring alarm bells across the health sector. It shows that the risks to patient care from cuts to Health NZ’s digital services team were known and expected.
“IT underpins every part of modern healthcare — from test results to operating theatres, clinical test results and payroll, yet the Government was prepared to gamble with patient care, all to save money.”
When IT fails, patient care fails with it
IT outages are now a constant feature in our health system – the risks were sharply highlighted in January when clinicians across hospitals in Auckland and Northland were forced to use paper-based systems and whiteboards overnight and again last week when Waikato Hospital staff were unpaid for 24 hours.
“The buck stops with Health Minister Simeon Brown. He must take urgent action to invest in IT upgrades and IT specialists, or the impacts will be tragic. The underfunding of public health has to stop.”
In light of the report the PSA is renewing its call for the Government to:
- Immediately review funding for health digital services and IT infrastructure
- Admit its mistakes in cutting digital services expertise
- Commit to properly resourcing IT system upgrades and maintenance
Snapshot report findings
The report found that the proposed cuts would increase “overall clinical and operational risks” that “will materially impact patient care”.
It warns that cutting Digital Services staff who keep IT systems running will “hinder the ability to maintain such critical services effectively,” and will have “a larger impact on the [the Government’s] health targets than initially suggested.”
The report found that cutting digital delivery capability “may negatively impact Health NZ’s ability to implement productivity and cost saving initiatives”, needed to meet the health targets.
It warns that with fewer staff and an ageing IT ecosystem, “the risk rating will almost certainly elevate as technical debt becomes unsustainable.”
The report further warns of longer wait times for clinicians looking for IT support. “Delays in responding to issues and requests may lead to impacts on clinical care time or the ability to provide critical information.”
It states that cuts will hit rural and regional hospitals hardest. Smaller sites including Gisborne, New Plymouth, Whanganui, Masterton, Nelson, Greymouth and Rotorua were already identified as under-resourced and geographically vulnerable. “The impact would be felt more keenly owing to the multiple roles conducted by some staff. A combination of single points of failure and inadequate wrap-around support.”
When IT systems fail, it’s not an inconvenience — it’s a clinical risk. Test results get delayed. Information disappears. Decisions are made without the full picture. The warning was there in black and white. The question now is who takes responsibility when those risks turn into real harm.
