Government Prioritises Digital Health Infrastructure After A Year Of Setbacks

The Government has finally acknowledged the urgent need to modernise New Zealand’s crumbling digital health infrastructure, a move welcomed by the Digital Health Association (DHA).

"It’s encouraging to see the Government recognise that digital infrastructure is not just a ‘nice to have’ but an essential pillar of a functioning health system," says DHA chief executive Ryl Jensen.

However, she says this long-overdue commitment follows a year of deprioritisation, which saw close to half a billion dollars stripped from digital health, reversing momentum gained between 2021 and 2023 when the sector finally started to see real investment.

"We had a window where digital health was getting the attention and funding it needed, and we were making progress. But in the past year, much of that has been undone. Funding was pulled, key projects stalled, and the sector was left in limbo—right when we needed to accelerate change," says Jensen.

The impact of these funding cuts has been significant. "Frontline healthcare workers are still dealing with outdated, fragmented systems that make their jobs harder, while patients face delays and inefficiencies that could be avoided with the right technology in place. Meanwhile, other countries are moving forward, and New Zealand is falling behind."

Jensen says reinvesting in digital health will deliver tangible benefits—cost reductions, system efficiencies, and better patient outcomes.

"We have world-leading digital health innovators in New Zealand ready to work with the Government to create solutions that will future-proof our health system. But without long-term investment, we risk more stop-start efforts that don’t deliver the transformation we need."

The announcement follows news that Health New Zealand will outsource some services to the private sector, with Health Minister Simeon Brown emphasising the need for smarter, more efficient healthcare delivery models. Jensen says while details of the outsourcing strategy remain unclear, digital solutions must be at the centre of any modernisation effort.

"Technology-driven transformation should be at the heart of these reforms. A properly executed long-term digital health infrastructure plan will provide much-needed certainty to the sector, driving innovation and ensuring our system is fit for purpose in the 21st century."

The DHA, which represents New Zealand’s digital health industry, has long advocated for a strategic, well-funded approach to digital infrastructure. Jensen says this renewed focus is promising but must translate into decisive action.

"We can’t afford more delays or short-term fixes. The past year has already cost us momentum, and we are seeing the impact as other countries pull ahead in digital health innovation. If we don’t act now, we risk falling even further behind."

She says the digital health sector is ready to engage with the Government on the next steps and ensure that technology is leveraged to its full potential.

"This is a pivotal moment. If we get it right, New Zealand can be a global leader in digital health innovation. But we need a clear plan, strong investment, and a genuine commitment to progress."

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