Budget 2025: A Missed Opportunity To Build A Stronger, Smarter Health System

The Digital Health Association (DHA) believes Budget 2025 offers some encouraging steps but falls short of delivering the bold, strategic investment needed to modernise New Zealand’s health system and unlock the full potential of digital innovation.

While we welcome targeted funding for 24/7 telehealth services, mental health response tools, PHARMAC’s digital systems, and digital infrastructure for the new Dunedin Hospital, these initiatives remain isolated. What’s still missing is a joined-up, long-term digital health investment strategy that connects the dots across the system.

“Digital health is no longer a future aspiration—it’s the foundation of modern care,” says Ryl Jensen, CEO of the Digital Health Association. “We’re encouraged by some of the budget commitments, but there’s a real opportunity here to go further. Our health system is at a crossroads. We can either continue to make incremental, patchwork changes, or we can take a bold step toward a connected, responsive health future.”

The DHA has long advocated for a national digital health strategy that ensures sustainable funding, strong system governance, and patient-centred data access. The reprioritisation of $380 million in funding last year—and a further $100 million reduction mid-year—left a significant gap in momentum. But the sector remains committed to being part of the solution.

“This is not about chasing headlines; it’s about doing the groundwork for a safer, smarter health system,” says Jensen. “Digital investment may not always be visible to the public, but its impact is—every time a doctor accesses the right information in time, every time a patient avoids repeating their story, every time care is coordinated across settings.”

Today, the DHA met with Health Minister Simeon Brown to discuss the path ahead. The Minister acknowledged the essential role digital plays in delivering effective care and reaffirmed his commitment to strong digital governance and infrastructure. The Minister also noted the importance of the upcoming Digital Infrastructure Plan and the potential for a new health infrastructure entity—something the DHA believes must have digital embedded from day one.

“Digital and physical infrastructure go hand-in-hand,” Jensen says. “A new hospital building is only as effective as the systems that support it. If we get this right, we’ll build not just for today’s needs—but for tomorrow’s opportunities.”

Other countries are showing what’s possible. Australia continues to scale its digital investments. The UK allocates 8% of its health budget to digital. New Zealand currently sits at just 2.2%.

“We don’t need to reinvent the wheel—we need to be willing to invest in it,” says Jensen. “Young clinicians are telling us they hope to see integrated, supportive systems in their working lifetime. That’s not just a tech challenge—it’s a workforce and wellbeing issue.”

The DHA recently provided Minister Brown with five strategic recommendations to strengthen digital health delivery and outcomes across the system. As the peak body for digital health in New Zealand, the Association is committed to working alongside Government to turn these ideas into action.

“The message is simple: we’re not just calling for change—we’re offering to help build it,” says Jensen. “Let’s move from patching to planning, from delays to delivery. It’s time to design a digital health system that works for everyone—patients, clinicians, and the communities they serve.”

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