- Health New Zealand’s finances are being tracked with Excel
- The body operates 6,000 apps and 100 digital networks
- No immediate plans to modernize its systems
A recently published report has revealed Health New Zealand (HNZ) has been relying on a single Microsoft Excel spreadsheet as its primary financial management tool.
Established in 2022, HNZ was designed to replace 20 district health boards in the name of cost efficiency and service consistency, but until now, the body has been relying on basic spreadsheet software that has been deemed unsuitable for purpose.
A Deloitte report found HNZ lost control of “critical levers that drive financial outcomes,” which it blamed primarily on “the inability to identify and respond to the disconnect between expenditure and revenue” among other factors.
New Zealand’s healthcare was run off an Excel spreadsheet
HNZ reported a $1.013bn deficit against a breakeven budget in 2022/23, and by 2023/24, Doilette says financial challenges were “increasingly evident.”
Overall, the report specified five major issues with the Excel-based system: hard-coded financial data made updates and source tracing difficult; errors such as incorrectly released accruals were not picked up until later; changes to prior periods would not flow into consolidated data; limited tracking allows for easy data manipulation; and input and changes are prone to simple human errors, such as typos or missing zeroes.
“The use of an Excel spreadsheet file to track and report financial performance for a $28bn expenditure organisation raises significant concerns,” Deloitte summarized.
Separately, Health Minister Simeon Brown recently revealed in a speech that HNZ operates an estimated 6,000 applications and 100 digital networks – he described the healthcare system’s digital infrastructure as “fragmented.”
Despite the damming report, the Health Minister has not revealed any immediate plans to replace Excel. A potential Health Infrastructure Entity is being considered for managing physical and digital assets, but no timeline has been set. TechRadar Pro has contacted Health New Zealand for a comment.
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