Latest / The SME Stream / Margie Apa: Health NZ CEO on the $934 million deficit for the financial year

Transcript

Margie Apa: Health NZ CEO on the $934 million deficit for the financial year · The SME Stream

• 0:00
  Speaker 1: It's the dire state of House New Zealand's books has
• 0:02
  Speaker 1: been laid bare. It turns out the deficit is near
• 0:05
  Speaker 1: a billion dollars and that is worse than expecting with
• 0:07
  Speaker 1: us now is House New Zealand's chief executive Margi.
• 0:09
  Speaker 2: Upper Hey, Marjie, Oh, good morning.
• 0:12
  Speaker 1: How did you guys go from expecting a surplus of
• 0:14
  Speaker 1: about five hundred million bucks in March to then a
• 0:17
  Speaker 1: deficit of nearly a billion dollars in June?
• 0:21
  Speaker 2: Probably three key drivers a comment on Heather. We certainly
• 0:27
  Speaker 2: recruited a head of budget, so we have ended the
• 0:30
  Speaker 2: year with over four thousand more chlinical staff, of which
• 0:34
  Speaker 2: half a round and budget. We did have someone off
• 0:38
  Speaker 2: that landed in Q four which on refection we really
• 0:41
  Speaker 2: should have smoothed junior year, which would have made our
• 0:44
  Speaker 2: monthly financial show that we weren't as in as positive
• 0:47
  Speaker 2: a position as we were. We made different decisions and
• 0:51
  Speaker 2: of timing the we got. We ended a period of
• 0:56
  Speaker 2: gene still then into yet about four hundred nineteen million
• 1:00
  Speaker 2: pay investment, which has sim receive we've gotten at last week, mister.
• 1:07
  Speaker 1: Keep So if we take take out the one offs,
• 1:10
  Speaker 1: take out their pay equity and take out the staff
• 1:14
  Speaker 1: that you recruited early. Does that mean that next year,
• 1:17
  Speaker 1: next financial year, the one that we're in at the moment,
• 1:19
  Speaker 1: we won't have a deficit.
• 1:22
  Speaker 2: We're working to try to get back to budget, but
• 1:25
  Speaker 2: we don't want to. You know, we've got good clinical
• 1:28
  Speaker 2: staff and play, so we want to make sure that
• 1:30
  Speaker 2: we're getting really big value out of the time of
• 1:33
  Speaker 2: our clinical frontline people and in particular achieving targets because
• 1:37
  Speaker 2: that's that's the big delivery priority for Health New Zealands
• 1:40
  Speaker 2: to meet those short wait times.
• 1:42
  Speaker 1: That didn't sound like you're super confident you're going to
• 1:44
  Speaker 1: be able to get back into surplus.
• 1:47
  Speaker 2: We're we're tattoed. So we've managed to stop our cost growth,
• 1:53
  Speaker 2: particularly in this past quarter, so we're ta title stabilized
• 1:57
  Speaker 2: in this quarter. The rest of the year, we do
• 1:59
  Speaker 2: need to take out some costs. We've got to also
• 2:02
  Speaker 2: balance that with making sure we deliver on the targets
• 2:05
  Speaker 2: and use the kind of cool workforce that we've got.
• 2:06
  Speaker 1: Mardia, you guys still losing more than one hundred million
• 2:09
  Speaker 1: bucks a month.
• 2:11
  Speaker 2: We're spending at a rate of more than one hundred
• 2:13
  Speaker 2: million a month. Yes, and there's some that hasn't changed
• 2:15
  Speaker 2: the initiatives we've got underway. It's plateaued over the last
• 2:19
  Speaker 2: this quarter.
• 2:20
  Speaker 1: Okay, so yeah, okay, so it was growing beforehand, it's
• 2:24
  Speaker 1: now not growing now, it's just sitting at that level.
• 2:26
  Speaker 1: But you've got to bring that down, don't you.
• 2:28
  Speaker 2: Yes, yes, we need to reduce our call all right here.
• 2:30
  Speaker 1: On the bright side on the targets, you have managed
• 2:32
  Speaker 1: to hit four of the five targets now not by
• 2:34
  Speaker 1: a lot, right, So is that just because it's over
• 2:37
  Speaker 1: only a three month period. It'll just keep keep adding
• 2:39
  Speaker 1: all the little increments together and at the end of
• 2:41
  Speaker 1: the year looks bigger.
• 2:43
  Speaker 2: Yeah. And we also Q four is also our winter season,
• 2:47
  Speaker 2: so we do tend to see it's a passion of
• 2:51
  Speaker 2: not seeing the kind of growth of improvement over this period.
• 2:54
  Speaker 2: And there'll be a little bit of the keep day
• 2:56
  Speaker 2: of the July August. Yeah, we're still seeing some winter
• 2:58
  Speaker 2: volume through hospitals in particular.
• 3:01
  Speaker 1: Okay, Maggie, thanks very much appreciate. Magie Apper Health New
• 3:03
  Speaker 1: Zealand Chief Executive