Health NZ said it did not believe its contracting decisions caused QE Health\u2019s closure and it understood that the decision to place QE Health into liquidation was not based on whether service contracts would transfer.<\/p>\n
Health NZ warned QE Health in \u2018crisis\u2019 <\/p>\n
Emails released on March 18 by Health NZ under the Official Information Act showed Wilson sent the government agency a summary and report outlining its \u201ccontract crisis\u201d on September 25.<\/p>\n
The summary, dated August 25, said QE Health was a \u201ccritical provider\u201d of specialist rheumatology and orthopaedic services in Rotorua.<\/p>\n
It said the organisation was facing an \u201curgent financial crisis due to chronic underfunding and rising healthcare costs, threatening its ability to continue operations\u201d.<\/p>\n
The summary said QE Health\u2019s contract funding had increased by \u201conly 2% on average\u201d since 2018, compared with a 27% rise in the Consumer Price Index (CPI) and 5% annual increases in sector cost indices.<\/p>\n
The impacts included bulk-funded contracts no longer covering service delivery costs, \u201climiting patient access despite growing demand\u201d, and orthotic contracts being insufficient to fund essential devices, placing financial strain on patients.<\/p>\n
The inability to match sector wage growth was also causing staff shortages and burnout, it said.<\/p>\n
\u201cQE Health narrowly avoided insolvency two weeks ago, surviving only through deferred loan repayments and a $150,000 interest-free loan from a local businessman,\u201d the summary said.<\/p>\n
The crisis report urged Health NZ to address \u201chistoric shortfalls\u201d and incorporate automatic annual adjustments aligned to CPI and\/or Health Sector Labour Cost Index to ensure contract values remained sustainable.<\/p>\n
The emails showed Health NZ Te Manawa Taki regional planning, funding, and outcomes director Nicola Ehau responded to Wilson on September 25 and said she had requested a meeting with three people in her team \u201cto organise how we will proceed\u201d.<\/p>\n
\u201cI understand we have a number of pieces of work that need tidying up with your organisation …\u201d, she wrote.<\/p>\n
\u201cI will indicate at this stage we have no wriggle room in this financial year to go outside the parameters set by our governance regarding percentage increases agreed for the sector.\u201d<\/p>\n
Health NZ was asked about its response to Wilson\u2019s summary and crisis letter, the status of services previously offered by QE Health, and how many patients had been seen or scheduled.<\/p>\n
Services previously delivered by QE Health are now being provided through a mix of Health NZ teams and contracted providers. Photo \/ Megan Wilson<\/p>\n
In an April 2 statement to the Rotorua Daily Post, Ehau said Health NZ acknowledged QE Health\u2019s September summary and crisis letter at the time and had worked closely with the provider \u201cas issues progressed\u201d.<\/p>\n
This included a senior-level meeting in early October, ongoing audit discussions, service review activity, and contingency planning as the provider\u2019s financial position changed.<\/p>\n
Ehau said Health NZ had ensured patients\u2019 continuity of care, with services previously delivered by QE Health now being provided by Health NZ teams and contracted providers.<\/p>\n
Rheumatology clinics were continuing, orthotics services were being delivered through contracted providers, and fracture liaison services were in place, she said.<\/p>\n
Rehabilitation and chronic pain services were also continuing, with additional physiotherapy and psychology staff expected to expand capacity from May, Ehau said.<\/p>\n
The majority of clinics were delivered from Rotorua Hospital, with some from Taup\u014d Hospital.<\/p>\n
As referrals were now managed across multiple services and providers, it was not possible to provide a consolidated figure for how many patients had been seen or were scheduled, she said.<\/p>\n