Health NZ has reduced annual spending on external suppliers within its Data and Digital operations by almost $82 million over two years, although it has cautioned that organisational changes mean expenditure figures are not directly comparable across years.
Indicative external supplier expenditure fell from $462.1 million in 2022/23 to $447.1m in 2023/24 and $380.3m in 2024/25, according to figures released under the Official Information Act.
Total Data and Digital operating expenditure was $750.4m in 2024/25, compared with a budget of $703.6m.
Salary expenditure was $205.3m for the year, compared with a budget of $145.9m, while ICT and telecommunications expenditure was $314.9m against a budget of $305.2m.
Crown-funded project expenditure fell from $124m in 2023/24 to $61.6m in 2024/25, while depreciation and amortisation increased from $102.4m to $164.8m.
Health NZ said budget figures should not be directly compared across years because the scope and structure of Data and Digital has changed since the organisation was established in July 2022.
More than 20 former district health boards and shared service organisations were brought together, with separate data and digital groups progressively consolidated into a single national group.
A new structure took effect from November 2023, while Data Services moved to the Planning, Funding and Outcomes function in late 2024. A further reset took effect from mid-2025 and included additional transfers between Digital and other Health NZ functions.
The figures continue to include Data Services despite it now sitting within Planning, Funding and Outcomes.
Health NZ also said reporting had improved over time, meaning later expenditure data was considered more reliable. It said there were known limitations in the 2022/23 figures due to classification and mapping issues.
The 2022/23 actual expenditure figures have not previously been published.
External supplier expenditure is indicative and was calculated by Health NZ as total expenditure less salary costs and depreciation and amortisation.
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