March 15, 2026

#hauora: Report Warns Health IT Cuts Could Increase Risks to Patient Care

Matthew Tukaki Posted On March 15, 2026

A newly released report has raised serious concerns about the potential impact of cuts to Health New Zealand’s digital services workforce, warning the reductions could increase risks to patient safety and hospital resilience.

The report, titled End user impact of digital change – consequences, was prepared by Health NZ’s Clinical Quality and Safety Committee and later obtained by the Public Service Association (PSA) through the Official Information Act. The document examined the likely effects of a major restructuring that significantly reduced the organisation’s IT workforce.

According to the report, proposed changes would create higher clinical and operational risks across the health system and could materially affect patient care if not carefully managed. The analysis warned that reducing the number of skilled digital staff would leave systems more vulnerable, particularly as the health sector relies heavily on technology to manage patient records, laboratory results, referrals and hospital operations.

The workforce changes were part of broader public sector cost-saving measures introduced by the Government. The restructuring saw the digital services workforce reduced by hundreds of roles, with the number of positions falling from about 2,000 to around 1,460.

Union representatives say the report shows officials were warned about the risks before the cuts were implemented. The PSA argues the document highlights how critical IT systems are to modern healthcare, from operating theatres to payroll systems, and warns that reducing specialist expertise could have serious consequences for patients and frontline staff.

Recent technical outages across several hospitals have added to the debate. In recent months, significant IT disruptions have forced clinicians in some regions to revert temporarily to manual systems such as paper records and whiteboards when digital systems failed.

The report also noted that regional and smaller hospitals could face greater vulnerability because many staff in those locations perform multiple digital support roles. With fewer staff available, service response times and system recovery could become slower during technical failures.

Health New Zealand says the risks identified in the report were taken into account when final decisions were made about restructuring. Officials say mitigation measures were built into the new digital services structure, including prioritising critical clinical systems, maintaining operational support roles and strengthening regional digital leadership.

However, critics say the findings highlight the importance of continued investment in health technology infrastructure and skilled IT professionals, particularly as the health system becomes increasingly dependent on digital systems to deliver patient care.

The debate comes at a time when the health sector is undergoing significant change, with ongoing pressure to balance cost savings with maintaining reliable and resilient healthcare services for communities across Aotearoa.