Health NZ's Locum Doctor Costs Hit Record High, But Is It Sustainable? (2026)

The health sector in New Zealand is facing a critical challenge: the rising cost of locum doctors, which has reached a staggering $220 million in the 2025-26 financial year. This figure, a significant increase from previous years, highlights a deeper issue within the healthcare system. In my opinion, this situation is not just about the money; it's about the sustainability and quality of healthcare services in the long term. What makes this particularly fascinating is the tension between the immediate need for healthcare professionals and the long-term implications of relying on locums. From my perspective, the health sector is at a crossroads, and the decisions made now will have far-reaching consequences.

The Locum Dilemma

Locums, or temporary doctors, have become a vital part of the healthcare system, especially in filling gaps left by permanent staff. Dr. James Irwin, a former gastro specialist, highlights the dual nature of this reliance. On one hand, locums are essential for short-term needs, ensuring that departments can function even when a doctor is absent. However, the longer-term implications are less favorable. Irwin's experience shows that locums may not be the best solution for chronic disease management and long-term departmental planning. This raises a deeper question: how can the healthcare system balance the immediate need for locums with the long-term benefits of permanent staff?

The Financial Impact

The financial burden of locums is substantial. Health NZ's spending on locums has been steadily increasing, reaching $220 million in the 2025-26 year. This trend is concerning, especially given the organization's efforts to cut the budget for the 2026-27 year to $179 million. In my view, this financial strain is not just a numbers game; it reflects the underlying challenges in the healthcare system. The question is, how can the sector manage this financial burden while ensuring the quality and continuity of care for patients?

The Need for Permanent Staff

The solution, according to Health NZ's national director, Robyn Shearer, lies in recruiting permanent staff. The organization is working with medical schools and promoting New Zealand as a great destination for doctors. However, the competition for specialists is fierce, and the sector must find innovative ways to attract and retain talent. In my opinion, this is where the real challenge lies. Simply cutting the budget for locums may not be enough. The healthcare system needs to rethink its approach to recruitment and retention, offering incentives that go beyond financial compensation.

The Patient's Perspective

The impact of this locum reliance is felt by patients, too. Patient Voice Aotearoa's Malcolm Mulholland suggests a novel approach: bonding new graduates to hard-to-staff areas with incentives like student loan repayment. This idea, while innovative, raises a deeper question: how can the healthcare system create a more sustainable and attractive environment for doctors, ensuring that they stay and provide long-term care for patients?

The Way Forward

The health sector is at a critical juncture. The reliance on locums is not sustainable, and the financial burden is mounting. In my opinion, the solution lies in a multi-faceted approach. Health NZ must continue to recruit permanent staff, but it also needs to rethink its strategies for retention and incentives. The sector must address the underlying issues that make locums an attractive option, ensuring that the healthcare system is not just about filling gaps but also about building a strong and stable workforce. The challenge is clear, and the time to act is now. The future of healthcare in New Zealand depends on it.

Health NZ's Locum Doctor Costs Hit Record High, But Is It Sustainable? (2026)
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