The Prime Minister will speak to Newstalk ZB’s Mike Hosking this morning following the Government’s dramatic move on Monday to take control of Health NZ. 

Listen live: Prime Minister Chris Luxon at 7.35am 

Rob Campbell, the former chair of Health NZ-Te Whatu Ora’s board, is also speaking to Hosking this morning after the remainder of the public health agency’s board was sacked. 

Health Minister Shane Reti yesterday appointed the board’s chair, Professor Lester Levy, as commissioner for a 12-month term. Only one board member was remaining after two others resigned and the rest chose not to serve another term. 

Professor Lester Levy was chair of the Health NZ board and has now been appointed as commissioner. Photo / Supplied 

The health agency was formed in 2022 by the previous Labour government, which merged the country’s 20 district health boards with the intention of creating a more joined-up health system. 

Modelled after the UK’s National Health Service, Health NZ was responsible for running all public hospitals and health services. 

But Health Minister Dr Shane Reti said yesterday he had serious concerns around the agency’s oversight as well as overspending of around $130 million a month. 

He blamed the previous government for mismanaging its health reforms, resulting in “an overly centralised operating model, limited oversight of financial and non-financial performance, and fragmented administrative data systems which were unable to identify risks until it was too late”. 

Levy, as commissioner, would need to “strengthen governance and management” and seek savings of $1.4 billion to ensure “financial balance”, Reti said. 

Reti had opposed the changes while in opposition, calling instead for some DHB functions like asset management to be merged while avoiding over-centralisation of the health system. He warned New Zealand had no idea how expensive or disruptive the process would be. 

Luxon yesterday suggested restructuring parts of the health system to remove layers of bureaucracy could help deliver savings. 

He claimed there could be “up to 14 layers of management” between Health NZ’s chief executive and patients. 

Labour’s health spokesperson Ayesha Verrall hit back yesterday at claims of overspending, saying the problem stemmed from the current Government underfunding health in the 2024 Budget.