#budget2025 The State of New Zealand’s Health System in 2025: A Sector Under Strain

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19 May 2025

Waatea News

As of mid-2025, New Zealand’s health system is navigating a period of significant upheaval, marked by structural reforms, financial pressures, workforce challenges, and growing concerns over equity and access.

Structural Reforms and Governance Changes

In 2022, the government consolidated 20 District Health Boards into a single entity, Health New Zealand | Te Whatu Ora, aiming to streamline services and improve efficiency. However, by mid-2024, the organization faced a projected deficit of NZ$1.4 billion, leading to the replacement of its board with a sole commissioner, Professor Lester Levy.

In early 2025, Health Minister Simeon Brown announced a shift towards “locally delivered” healthcare, emphasizing regional decision-making to better address community needs.

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Key issues

HEALTH SERVICES AND SYSTEMS

Covering developments in the provision, funding and organisation of health care services.

EQUITY

Exploring the impacts of the health system on minorities within the population, notably including Māori, Pacifica, Asians and LGBTQI.

DRUGS, DEVICE AND DIAGNOSTICS

Covering prescription medicines and medical devices.

PUBLIC HEALTH

Focusing on efforts to promote health and prevent disease through social and economic interventions.

DIGITAL HEALTH

Exploring the potential digital transformation to provide a more connected and accessible health system.

TE TIRITI

Monitoring how the health reforms and the performance of the health sector uphold Te Tiriti obligations.