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

The Digital Health Association (DHA) believes Budget 2025 is a missed opportunity for digital health. “It offers small 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”, says CEO, Ryl Jensen.

While we welcome targeted funding for 24/7 telehealth services, mental health response tools, upgrades to 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 and funding that is sustained.

“Digital health is no longer a future aspiration—it’s the foundation of modern care,” says Jensen. “We’re encouraged by some of the budget commitments, but now is the time to be bold. Our health system is at a crossroads—we can either keep making incremental, patchwork changes or take a decisive 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 and triggered a long and complicated restructure. But the sector remains committed to being part of the solution.

“This is 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 can make a palpable difference to productivity, efficiency, and continuity of care right across the health system.”

Other countries are showing what’s possible. Australia continues to invest strategically and scale its digital investments. The UK has allocated 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.”

As the peak body for New Zealand’s digital health sector, the DHA plays a critical role in connecting government and industry. In a recent briefing to Minister Brown, the DHA outlined five key recommendations to strengthen digital health across the system. “We understand the pressure points—we see them from the inside,” says Jensen. “We’re ready to work alongside the Government to help shape a clear, future-focused path forward.”

“The message is simple: we’re not just calling for change—the sector is ready to help lead it,” says Jensen. “What was once urgent is now critical. It’s time to move beyond patchwork fixes and invest in a digital health system that truly transforms how care is delivered.”

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