QE Health offered clinical services, including rheumatology, physiotherapy, psychology, orthotics, dietetics, and occupational therapy.
Patients expressed worries for their future health after its closure, with one saying there is “nothing like it in New Zealand”.
Wilson told the Rotorua Daily Post he lodged a complaint about Health NZ to the Commerce Commission on November 18.
“This year, QE Health was issued a new contract providing a 3% increase [in funding] just three days before the existing contract expired, and was advised that unless it was signed immediately, payment would not be made the following month.”
In the complaint, sighted by the Rotorua Daily Post, Wilson said the contract, which expired on June 28, was worth more than $300,000 per month.
It said he accepted the 3% increase after speaking with directors.
Without the contract, he would have “needed to close the doors as I could not pay the payroll”.
“We have had eight years of 2% increases and the 3% ‘offered’ this year is not enough to sustain the business.”
Wilson said the commission responded to his complaint on December 18, advising him it would not investigate his concern.
He said this was “quite disappointing” because in his view it seemed like “a clear case of monopoly bullying” and meant the business was in liquidation.
Wilson said QE Health was not considering taking private action or establishing a breach of the Commerce Act 1986 through the courts.
Commission ‘unclear’ on how conduct breached Commerce Act
In a statement, Commerce Commission competition, fair trading, and credit general manager Vanessa Horne said the commission carefully assessed Wilson’s concern and information.
While the commission could not investigate every concern, each one was logged and assessed, she said.
Horne said it considered several factors relating to its enforcement criteria – the extent of detriment, seriousness of conduct, and public interest.
It was also guided by its enforcement priorities when determining whether to take a concern further.
“After completing an assessment of this concern, the commission determined it was unclear how the conduct breached the Commerce Act.
“Therefore, the commission has opted not to take further action at this time.”
Horne said the business’ liquidation factored into its decision.
Health NZ refutes claims
Health NZ refuted Wilson’s claims and reiterated its previous statement by its Midland Te Manawa Taki regional planning, funding and outcomes director Nicola Ehau.
Ehau said Health NZ had been working with QE Health’s previous leadership to address “service sizing and the alignment of existing agreements”.
“Health New Zealand understands that the decision to place QE Health into liquidation was not based on whether service contracts would transfer.
“Matters relating to the closure remain under the liquidator’s control, and it would not be appropriate to comment further.”
Funding increases for community services were set nationally and, since Health NZ was formed, had been “applied consistently across all non-government organisations”, Ehau said.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.