Health NZ's $220M Spent on Locum Doctors: Crisis or Solution? (2026)

The health sector in New Zealand is facing a critical challenge: the escalating 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 the growing reliance on temporary medical staff to fill gaps in the system. But what does this trend imply, and what are the implications for the country's healthcare? In my opinion, this situation is a wake-up call, revealing the need for a more sustainable and strategic approach to healthcare staffing. Let's delve into the complexities and explore the potential solutions.

The Locum Dilemma

Locums, or temporary doctors, have become a lifeline for many healthcare facilities, especially in specialized fields like gastroenterology. Dr. James Irwin, a former permanent gastro specialist, acknowledges the benefits of locums in filling short-term gaps. However, he also highlights the drawbacks, particularly the impact on long-term care and patient continuity. The transactional nature of locum work, where doctors are hired for specific periods, can lead to a lack of commitment to ongoing responsibilities, which is a critical concern for patients.

The increasing spend on locums is not just a financial burden but also a symptom of deeper issues within the healthcare system. As Health NZ's national director, Robyn Shearer, admits, the organization is struggling to recruit permanent doctors, especially in specialized fields. This global challenge, combined with New Zealand's competitive market, has led to a situation where locums are becoming a more frequent and costly solution.

The Need for Permanent Solutions

The solution, in my view, lies in shifting the focus towards permanent staffing. Health NZ is taking steps in this direction, with plans to recruit overseas and collaborate with medical schools. However, this approach needs to be more proactive and strategic. One innovative idea, proposed by Malcolm Mulholland from Patient Voice Aotearoa, is to bond graduating doctors to hard-to-staff areas, offering to cover their student loans as an incentive. This not only addresses the staffing shortage but also creates a more sustainable and committed workforce.

The Broader Perspective

The reliance on locums is a symptom of a healthcare system that is struggling to keep up with demand. As the health minister, Simeon Brown, has emphasized, the long-term goal is to build a stronger, more stable workforce with more permanent staff. This shift is essential to ensure the continuity and quality of care for patients. However, it also requires a reevaluation of the current system, including the role of locums and the incentives for doctors to stay in New Zealand.

In conclusion, the escalating cost of locums is a critical issue that demands attention and action. By shifting the focus towards permanent staffing and implementing innovative solutions, New Zealand can build a more resilient and sustainable healthcare system. This is not just a financial imperative but also a moral obligation to ensure the well-being of patients and the long-term health of the nation's healthcare sector.

Health NZ's $220M Spent on Locum Doctors: Crisis or Solution? (2026)
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