FIX: Farewell to the Transition Unit

“The total cost to fund the Transition Unit was $36.394m”

Today marks the end of the Health and Disability Review Transition Unit, two years after former director-general of health Stephen McKernan was appointed to head the Government’s health reform powerhouse.

But the health reforms are far from complete. The new health agencies have much work ahead to establish their systems, the New Zealand Health Plan and Charter are yet to be released, only nine of the anticipated 60 to 80 localities have been established, and the Government’s thinking on primary care funding remains under wraps.

An EY consultant, Mr McKernan was appointed to the Transition Unit four months after the Government in May 2020 released the final report of the Heather Simpson-led Health and Disability System Review.

The Transition Unit is based in the Department of the Prime Minister and Cabinet (DPMC).

Health minister Andrew Little says in an email response: “The Transition Unit in DPMC will be disestablished at the end of this month and the monitoring function will continue within the Ministry of Health. The total cost for the reform programme was $400m and the total cost to fund the Transition Unit was $36.394m.”

Following the release of the Government’s Budget 2021, New Zealand Doctor reported nearly $500 million had been set aside to implement health reforms.

In 2020, Mr McKernan was initially engaged, along with other EY staff supporting him, in a $2.4 million contract to the end of March 2021. The department later told New Zealand Doctor Rata Aotearoa that $7.07 million would be the maximum cost of the EY contract for the 14 months to last October. Non-EY suppliers of staff to the unit cost $1.284 million to July 2021. At that time the unit had 78 staff from EY, other contractors, government agencies and non-profit organisations.

The Transition Unit attracted several then-PHO chief executives, including Martin Hefford, of Tū Ora Compass, and Helen Parker, of Pinnacle Midlands Health Network.

Mr Hefford went on to be interim chief executive of interim Health New Zealand and the localities and commissioning workstream lead at Te Whatu Ora – Health New Zealand.

His LinkedIn page listed him as a consultant from last month until he updated it today to say, “On a break”.

To New Zealand Doctor, he explained via text message: “Am taking time out for next three months to recharge my batteries. Not looking for any consulting work at the moment. Will pop up again in the new year.”