New Zealand Health and Disability (Health NZ) Amendment Bill

1. Title

This Act may be cited as the New Zealand Health and Disability (Health NZ) Amendment Act 2020.

2. Commencement

This Act comes into force on the day after the date of receiving the Royal assent.

3. Purpose

The purpose of this Act is to establish a new oversight agency for the network of District Health Boards.

4. Principal Act amended

This Act amends the New Zealand Health and Disability Act 2000 (the principal Act).

5. New sections and crossheading inserted

Following section 56, insert the following new sections and crossheading:

Health NZ

56A. Health NZ

(1) An organisation called Health NZ is established.

(2) Health NZ is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to Health NZ except to the extent that this Act expressly provides otherwise.

(4) Health NZ is owned by the Crown.

56B. Functions of Health NZ

(1) The functions of Health NZ are—

• (a) to ensure consistent operational policy and lead the delivery of health and disability services across the country through auditing and reporting on the performance of DHBs, in accordance with its statement of intent (including the statement of forecast service performance) and (subject to section 65) any directions given under the Crown Entities Act 2004; and

• (b) to provide binding guidance for the proper functioning of DHBs and efficient financial performance of the DHB system taken together where there is any identifiable operational deficiency; and

• (c) to provide the Minister with information regarding the overall financial performance of DHBs and to be accountable for delivering continuous clinical and financial improvement within the DHB system; and

• (d) to assume, following consultation among and with DHBs, any identified common function which DHBs, prior to delegation, perform individually which Health NZ may perform with greater efficiency; and

• (e) to develop novel clinical and commissioning frameworks, including frameworks for Māori health; and

• (f) to undertake any other functions it is for the time being given by or under any enactment, or authorised to perform by the Minister by written notice to the board of Health NZ after consultation with it, in accordance with its statement of intent (including the statement of forecast service performance) and (subject to section 65) any directions given under the Crown Entities Act 2004.

(2) The Minister must, as soon as practicable after giving a notice under subsection (1), publish in the Gazette, and present to the House of Representatives, a copy of the notice.

56C. Membership of board

(1) The board of Health NZ consists of up to 8 members appointed under section 28 of the Crown Entities Act 2004 and a Chair appointed by the other 8 members of the board.

(2) Except in the case of a single vacancy of a board member to which this subsection applies, 4 of the members of the board appointed by the Minister must be appointed on the advice of the Iwi Chairs Forum.

General policy statement

This bill will implement one of the recent recommendations made by the Simpson review on DHBs, namely to establish a new arms-length agency to act as an umbrella body for the DHB system. This new agency, named Health NZ, will monitor DHBs for financial and clinical performance and will identify system-wide potential for improving efficiency and quality of care. It will take on central functions, such as pay bargaining, should DHBs delegate them and will be an information clearinghouse within the health system. Importantly, Health NZ's board will contain 50-50 Māori-Crown representation and Health NZ will have an important role in driving improvement in Māori health outcomes.

Section by section analysis

Section 1 is the Title section.

Section 2 is the Commencement section.

Section 3 is the Purpose section.

Section 4 identifies the New Zealand Health and Disability Act 2000 as the principal Act.

Section 5 inserts new provisions to establish the Health NZ agency, outline its functions and responsibilities as an over-arching body for the DHB system, and describe the appointment processes for the Health NZ board.

B.327 - New Zealand Health and Disability (Health NZ) Amendment Bill was authored by /u/MCloverz (Labour) and /u/SoSaturnistic (Labour) and is sponsored by the Minister of Health, /u/MCloverz (Labour), on behalf of the government.

Committee will conclude at 6 PM, 24/09/2020.