Article by Phil Pennington of RNZ
Health New Zealand spent a staggering $72 million on contractors and consultants for a single IT project, despite planning to cut over 1000 positions for IT employees. Robert Walters, a recruitment company, received $17 million alone in the last two years for the project, but declined to comment on the matter.
Although Health NZ anticipates hiring more staff, the substantial spending on external hires is expected to continue into the next year. The cost-cutting plan to eliminate hundreds of positions aims to save approximately $13 million annually, as per Te Whatu Ora Health NZ’s consultation document released recently.
The plan to reduce costs by shedding staff has raised concerns about the future of a groundbreaking new AI app that could revolutionize the assessment process for mental health patients. Despite the potential benefits of the app, the cost-cutting measures have put its development in jeopardy.
An Official Information Act request revealed the $72 million spent on contractors and consultants for the project. The project, known as the Health Sector Agreements and Payments Programme (HSAAP), has faced delays and budget increases, with only four percent of the necessary billing processing capability achieved so far.
HNZ has defended its use of contractors and consultants, stating that engaging with consultancies is only done when the benefits outweigh the costs. The project’s top-paid consultants include Deloitte, Infosys, and Circini, while Robert Walters and Presto Resourcing are among the highest-paid contractors.
Despite the ongoing concerns about the project’s progress and budget, HNZ remains committed to its development and plans to potentially hire more permanent employees next year.
One specific area of concern is the potential impact on the Tuhi AI app, which has shown promising results in trials. However, the future of the app remains uncertain due to the cost-cutting measures and restructuring within Health NZ’s IT department.
The future of the program will not be decided until the evaluation is finished.
The union delegates pointed out that the program did not require special hardware, was developed locally, and was culturally sensitive. They also noted that it did not encounter any data jurisdiction issues.
Source: RNZ
