{"id":814090,"date":"2026-07-21T09:38:11","date_gmt":"2026-07-21T09:38:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/814090\/"},"modified":"2026-07-21T09:38:11","modified_gmt":"2026-07-21T09:38:11","slug":"health-nz-spend-on-locum-doctors-hits-a-new-high-at-220-million","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/814090\/","title":{"rendered":"Health NZ spend on locum doctors hits a new high, at $220 million"},"content":{"rendered":"<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">The amount of money spent on temporary doctors to plug gaps in the health system has hit a new high, topping $200 million for the third year in a row.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Health NZ says it&#8217;s working hard to recruit permanent specialists and has even cut the budget for locums for the next financial year.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">But, others in the health sector say more drastic action is needed to bring the spend under control and incentivise doctors to stay on our shores.<\/p>\n<p>Locums have a place<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Dr James Irwin recently resigned as the <a href=\"https:\/\/www.rnz.co.nz\/news\/health\/631760\/health-nz-to-front-community-as-palmerston-north-loses-last-gastro-doctor\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">last full-time permanent gastro specialist at Palmerston North Hospital<\/a>, a service now staffed by locums and fill-ins from other districts.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">He&#8217;s seen the positive and negative side of using locums.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;In a a department, where you&#8217;ve got a full department and then someone is sick or goes away for a period of time, getting a locum is great because it helps fill holes and helps get work done.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;You have an expectation that you&#8217;re going to have a full department going forward to deal with all of the long-term stuff and all of the departmental planning, and so forth.&#8221;<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/4JPGLAD_gastro_James_Irwin_JPG.jpeg\"  alt=\"James Irwin.\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>Dr James Irwin.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">RNZ \/ Jimmy Ellingham<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Reliance on them, however, was less satisfactory when it became more of a medium-term arrangement, or longer.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;As a longer-term employee you&#8217;re then the one that&#8217;s dealing with all of the chronic disease management and planning for the department.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">In the 2025-26 financial year, Health NZ spent about $220m on locums, up from about $208m in 2024-25 and $209m in 2023-24. The bill was $168m in 2022-23, Health NZ&#8217;s first year of operation.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Irwin said constantly changing faces had an effect on continuity of care for patients too.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;It&#8217;s a consequence of the transactional model of healthcare.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;If you employ a locum and pay them money to do something for six weeks, they come and do that, but they&#8217;re not going to want to take on additional responsibility that continues after they finish,&#8221; Irwin said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;You need to be employing people in a situation where it&#8217;s clear that they&#8217;re going to be providing long-term care. That requires a long-tern appointment.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">He said that&#8217;s why permanent appointments were needed.<\/p>\n<p>Budget trimmed after spend increases<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Health NZ national director of people, culture, health and safety, Robyn Shearer, said the organisation was recruiting overseas and working with medical schools to get more doctors long term.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;It&#8217;s a global challenge. It is hard to get all the doctors we need,&#8221; she said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;Locums play a really important role for us in maintaining continuity of care and staffing, particularly in specialities and regions which are harder for us to staff.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;They&#8217;re an important part of how we fill and manage short-term gaps in our rosters and provide cover for our permanent doctors, in particular, to take a break.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">New Zealand was competing against other countries for specialists, so Health NZ worked hard to promote the country as a great destination.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;We are in a competitive market, there&#8217;s no doubt about it, and we have to be prudent financially,&#8221; Shearer said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;There is always a balance around what we offer, but we do look at, certainly, what New Zealand has to offer, and you&#8217;ll have probably seen we&#8217;ve had an influx of doctors in the South Island from America who are promoting New Zealand as a great place to work and live.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">She said health authorities had always used locums, but more were required as the demand for health services increased, putting pressure on the workforce.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">However, Health NZ was looking to bring the cost under control, cutting the budget for the 2026-27 year to $179m.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;We are deliberately looking to have a decrease in our spend. What we are supporting districts and regions with is how we can given them information so they have more awareness of locum use and spend.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Shearer said Health NZ regions could look at alternatives, drive recruitment and look at &#8220;alternate workforce ways of working&#8221; such as using nurse practitioners.<\/p>\n<p>Minister orders reliance to end<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Executive director of senior doctors&#8217; union, the Association of Salaried Medical Specialists, Sarah Dalton, said locums did quality work, but permanent staff provided better value.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;When you&#8217;re relying on locums to help run a service, anything from the complete collapse of the gastroenterology service in Palmerston North through to another service in another part of the country that needs locums on a regular basis to fill gaps in rosters, it is a cost to patients and to colleagues.&#8221;<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/4KC50CT_Health_Sarah_Dalton_JPG.jpeg\"  alt=\"Association of Salaried Medical Specialists executive director Sarah Dalton told the meeting about how under pressure the gastroenterology service at Palmerston North Hospital is.\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>Association of Salaried Medical Specialists&#8217; Sarah Dalton.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">RNZ \/ Jimmy Ellingham<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Patient Voice Aotearoa&#8217;s Malcolm Mulholland had another idea to try to hold on to doctors, rather than use more expensive locums.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;I do not for the life of me know what Health NZ aren&#8217;t coming up with a better plan &#8211; something along the lines of getting our best and brightest when they graduate from med school and bonding them in hard-to-staff areas.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;[Health NZ] could say as part of that bonding, &#8216;We&#8217;re also going to take care of your student loan.&#8217;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;To my mind it would still be a cheaper option than looking to employ locums left, right and centre.&#8221;<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/4JNM8YN_Image_3_jpg.jpeg\"  alt=\"Education Minister Erica Stanford, Energy Minister Simeon Brown and Prime Minister Christopher Luxon make an announcement about solar panels in schools on 3 June 2026 in Christchurch.\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>Simeon Brown.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">RNZ \/ Louis Dunham<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Health minister Simeon Brown has written to Health NZ&#8217;s chairperson, saying he expects the organisation to move away from depending on locums.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;As a priority I expect you to monitor and prioritise shifting away from dependence on locums to recruiting permanent senior medical officers to vacancies &#8211; with an initial focus on regions that have high dependency on locums,&#8221; he wrote.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">The minister&#8217;s office told RNZ locums would always play a role, as the minister&#8217;s priority was to make sure patients received the care they needed, when and where they needed it.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;However, the long-term goal is to build a stronger, more stable workforce, with more permanent staff delivering care across the country, and the minister has made that expectation clear to Health New Zealand.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"The amount of money spent on temporary doctors to plug gaps in the health system has hit a&hellip;\n","protected":false},"author":2,"featured_media":814091,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":["post-814090","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-au","tag-australia","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/814090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=814090"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/814090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/814091"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=814090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=814090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=814090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}