The Health Minister is standing by a push for hospitals to slash $138 million from their budgets.

Labour says the move will see care rationed out, as DHBs opt not to fill staff vacancies.

But Jonathan Coleman told Mike Hosking the public expects the government to look at what it's spending and re-prioritise that to where it's most needed.

He says $138 million is less than one percent of a $16 billion budget.

LISTEN TO THE FULL INTERVIEW WITH DR COLEMAN ABOVE