Health New Zealand has proposed a restructure of hospitals across the Central North Island that the Public Service Association (PSA) says will result in a net loss of 17 positions. The plan involves disestablishing 96 active roles and 30 vacant ones, while creating 108 new positions across Waikato, Tairāwhiti, Taranaki, and the Bay of Plenty.
How the restructure impacts hospital staff
The proposed changes target operational and clinical leadership roles, affecting psychologists, counsellors, physiotherapists, social workers, administrators, and cancer support staff. According to the PSA, employees will be required to reapply for the newly created roles with no guarantee of success, raising the possibility that some staff could be placed into lower-paid positions. PSA national secretary Fleur Fitzsimons stated that the move would force more work onto fewer people and destabilize local health teams. Health NZ executive regional director for midland, Cath Cronin, maintains that patient-facing clinical staff will not be impacted, noting that the changes are intended to strengthen clinical coordination and quality of care.

Disputed figures on role numbers
There is a notable divide between the union’s assessment of the proposal and that of Health New Zealand. While the PSA cites a net loss of 17 jobs, Cath Cronin stated that the region currently has 3,152 operational and leadership roles and that the “future state” would involve 3,192 positions. Cronin described this as a “net increase in roles,” asserting that the proposal focuses on creating a consistent leadership design rather than a reduction in capacity.
What happens next in the consultation process
A four-week consultation period is currently underway, though the PSA has formally objected to this timeframe, labeling it insufficient for a project of this magnitude. The union has requested more detailed information and an extension of the consultation period from Health New Zealand. As a possible next step, the PSA is seeking legal advice and has not ruled out potential litigation to stop the proposed dismissals. Health NZ officials have stated they are committed to ongoing communication and will use feedback from staff and unions to inform the final model before any decisions are finalized.
Affected locations
The proposal impacts services across the following facilities:
- Tauranga Hospital
- Whakatāne Hospital
- Gisborne Hospital
- Hāwera Hospital
- Taranaki Base Hospital
- Rhoda Read Continuing Care
- Taumaranui Hospital
- Te Kuiti Hospital
- Thames Hospital
- Tokoroa Hospital
- Waikato Hospital
