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Speaker 1: It's the dire state of House New Zealand's books has

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Speaker 1: been laid there. It turns out the deficit is near

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Speaker 1: a billion dollars and that is worse than expecting with

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Speaker 1: us now is House New Zealand's chief executive Margi Upper Hey, Marjie, Oh,

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Speaker 1: good morning. How did you guys go from expecting a

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Speaker 1: surplus of about five hundred million bucks in March to

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Speaker 1: then a deficit of nearly a billion dollars in June?

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Speaker 2: Probably three key drivers a comment on Heather. We certainly

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Speaker 2: recruited a head of budget, so we have ended the

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Speaker 2: year with over our four thousand more clinical staff of

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Speaker 2: which half a wound and budget. We did have some

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Speaker 2: one off that landed in Q four which on reflection,

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Speaker 2: we really should have smoothed junior year, which would have

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Speaker 2: made our monthly financial show that we weren't as in

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Speaker 2: as positive a position as we were, and we have

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Speaker 2: made different decisions and of timing the we got. We

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Speaker 2: ended a period of gene still and yet about four

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Speaker 2: hundred and nineteen million pay investment which has been received.

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Speaker 2: We've gotten that last week. The mystery for.

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Speaker 1: So if we take take out the one offs, take

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Speaker 1: out their pay equity and take out the staff that

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Speaker 1: you recruited early. Does that mean that next year, next

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Speaker 1: financial year, the one that we're in at the moment,

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Speaker 1: we won't have a deficit.

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Speaker 2: We're working to try to get back to budget, but

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Speaker 2: we don't want to. You know, we've got good clinical

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Speaker 2: staff and place, so we want to make sure that

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Speaker 2: we're getting really big value out of the time of

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Speaker 2: our clinical frontline people and in particular achieving targets because

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Speaker 2: that's that's the big delivery priority for Health New Zealands

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Speaker 2: to meet those short weight times.

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Speaker 1: That doesn't sound like you were super confident you're going

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Speaker 1: to be able to get back into surplus.

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Speaker 2: We're we're tattoed. So we've managed to stop our cost growth,

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Speaker 2: particularly in this past quarter, so we're tatitle stabilized in

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Speaker 2: this quarter. The rest of the year, we do need

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Speaker 2: to take out some costs. We've got to also balance

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Speaker 2: that with making sure we deliver on the targets and

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Speaker 2: use the kind of call workforce that we've gone.

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Speaker 1: Madia, you guys still losing more than one hundred million

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Speaker 1: bucks a month.

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Speaker 2: We're spending at a rate of more than one hundred

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Speaker 2: million a month. Yes, and there's some that hasn't changed

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Speaker 2: the initiatives we've got underway. It's plateaued over the last

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Speaker 2: this quarter.

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Speaker 1: Okay, so yeah, okay, so it was growing beforehand, it's

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Speaker 1: now not growing now, it's just sitting at that level.

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Speaker 1: But you've got to bring that down, don't you.

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Speaker 2: Yes, yes, we need to reduce our call all right

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Speaker 2: here on the.

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Speaker 1: Bright side on the targets, you have managed to hit

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Speaker 1: four of the five targets now not by a lot, right,

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Speaker 1: So is that just because it's over only a three

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Speaker 1: month period. It'll just keep keep adding all the little

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Speaker 1: increments together and at the end of the year looks bigger.

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Speaker 2: Yeah. And we also Q four is also our winter season,

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Speaker 2: so we do tend to see it's a passion of

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Speaker 2: not seeing the kind of growth improvement over this period

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Speaker 2: and there'll be a little bit of the pertectay over

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Speaker 2: the July August. Yeah, we're still seeing some winter volume

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Speaker 2: through yes hospitals in particular.

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Speaker 1: Okay, Margie, thanks very much, appreciate. Maggie upper Health New

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Speaker 1: Zealand Chief Executive. For more from the Mic Asking Breakfast,

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Speaker 1: listen live to news Talks it' B from six am

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