The chief executive of budget-challenged Health NZ Te Whatu Ora has resigned. 

Fepulea’I Margie Apa will be replaced from today by national director of the planning, funding and outcomes business unit, Dr Dale Bramley, as interim chief executive. 

Her term was to end in June, but she wanted to “make space” for a new leader to continue the work begun as part of Health NZ’s reset, Apa said. 

“Health New Zealand is at a point in the reset where a different leadership approach is required to take us forward, and I would like to make space for that now.” 

Apa and Health New Zealand Commissioner Professor Lester Levy - appointed by former Health Minister Shane Reti in July last year over governance and spending concerns - had planned a two-year “reset” of the organisation, aiming to be within budget by mid-2026. 

That was later pushed to mid-2027. 

The reset of Health NZ involved bringing spending under control and devolving some responsibilities to a regional level. 

Apa was named Health NZ’s interim chief executive three years ago this month, before taking a fixed-term role in July 2022 ahead of the move from the former district health boards system to a unified healthcare system. 

They “mutually agreed” on Apa’s decision to resign, Levy said this morning, acknowledging her contribution on behalf of himself and the three deputy commissioners. 

“I would like to thank Fepulea’I Margie Apa very much for her service to Health New Zealand. Margie has an extraordinary work ethic and from the day of my appointment she has worked extremely hard to support the new work programme. 

“The reset is a significant change in direction from where Health NZ was heading but she realigned entirely to the programme.” 

Collaborating to “join up and improve the care New Zealanders experience” was an ambition worth working for, Apa said. 

“All of us can make so much more of a difference if we can work together better. 

“I am pleased to have played a part in that shift. There is progress we have made – we are delivering more care than before to more people both in our hospitals and in our community and primary care sector.” 

Professor Lester Levy was brought in as Health NZ Commissioner last July amid ongoing budget issues at the national health authority. Photo / Mark Mitchell 

Health NZ has come under the microscope for budget challenges, including Levy’s appointment last July out of concern about its governance and over-spending. 

At the time, Health NZ was running monthly deficits of $130 million. 

Prime Minister Christopher Luxon sacked Reti last month, with Simeon Brown appointed the new Health Minister. 

In December, Health NZ extended its cost-cutting drive by another year, saying it was not realistic to hit its initial target in 2026. 

The centralised health organisation confirmed a deficit of $722 million for the 2023/24 year today, compared to a target surplus of $54m. It is also projecting a $1.1 billion loss for the 2024/24 year.