Four in five private healthcare providers surveyed by BNZ believe significant change is needed to meet New Zealand’s current and future healthcare needs. Just three percent believe the sector is already well placed to meet those needs.

The finding comes from the fifth annual BNZ Healthcare Sector Insights Report, which includes views from healthcare providers and people receiving care.

Patients surveyed also recognise the need for change, although their assessment is less stark. 57% believe the sector is already under pressure or not meeting current and future needs, while 17% consider it well placed to do so.

BNZ Head of Healthcare Sector Thom McKenzie says the findings reflect the scale of the challenge facing providers as demand grows and care becomes increasingly complex.

“Healthcare providers have shown enormous resourcefulness through years of workforce shortages, rising costs and growing demand, while continuing to care for New Zealanders. But the clear message from this year’s research is that adapting around the edges will not be enough to meet the challenges ahead.

“Providers recognise that more fundamental change will be needed, including investing in technology, working more closely across the sector and finding new ways to deliver high-quality care to more people.”

Workforce constraints are providers’ leading concern for the next three to five years, identified by 55% of those surveyed. Increasing complexity of patient needs and expectations follows at 46%, with increasing operational costs at 44%.

For patients, growing demand from an ageing population was the leading future concern at 58%, followed by the increasing cost of care or treatment at 50% and limited capacity for appointments at 47%.

“These issues are putting pressure on the sector from both directions at once,” McKenzie says.

“Providers expect workforce shortages to continue as patients’ needs become more complex, while New Zealand’s ageing population will place further pressure on care.

“The challenge is finding new ways to meet that growing need so people can continue to access high-quality care when and where they need it.”

Providers already making changes

Many providers are already looking beyond immediate pressures and beginning to reshape how they work. Almost half are improving existing processes, while one in four are making more fundamental changes to how care is delivered.

Both providers and patients expect private healthcare businesses to play a leading role in developing new models of care, working alongside technology companies, government and public agencies.

There is also strong support for looking beyond New Zealand for solutions, with nearly three in four patients expecting healthcare professionals to draw on ideas, technology and models of care from overseas.

“New Zealand doesn’t need to develop every solution from scratch,” McKenzie says.

“There is a lot we can learn from countries facing similar pressures, but it isn’t simply a matter of importing another system. The opportunity is to take what works elsewhere and adapt it to the needs of New Zealand patients, healthcare businesses and communities.”

Technology’s importance grows as use levels off

Technology is expected to play an increasingly important role in enabling change, but BNZ’s five years of research show the reported level of digital technology use has plateaued.

Around half of providers say digital technology is well used in their organisation, down from 63% in 2022.

Yet the sector expects technology’s importance to nearly double over the next three to five years, with 35% of healthcare businesses surveyed identifying it as one of the factors likely to have the greatest impact over that period, compared with 18% identifying it as a top five challenge currently.

“Technology use may have dipped, but its importance hasn’t,” McKenzie says.

“Healthcare businesses expect it to play a much bigger role in the coming years, particularly as workforce constraints and increasingly complex patient needs place more pressure on the sector.

“For many, the easier first steps have already been taken. Moving from administrative tools into technology that changes how care is delivered involves bigger decisions around investment, integration, privacy, regulation and clinical risk. That helps explain why use has dipped, even as the need for it is growing.”

Recent adoption has focused on practical tools that save time, including AI scribes, online booking, electronic prescriptions and administrative automation.

Patients are noticing the shift too. Among those who noticed greater use of technology, 42% of respondents said it improved their view of their healthcare provider.

Confidence holds despite sustained pressure

Despite the pressures facing the sector, 62% of providers remain confident about the outlook for their business over the next 12 months. Confidence has remained above 60% in four of the five years BNZ has conducted the survey.

“That confidence doesn’t mean providers underestimate the challenges ahead,” McKenzie says.

“It reflects a sector that knows demand for healthcare will continue to grow and is already preparing for it.

“Businesses that invest early in new ways of delivering care, technology and the right partnerships will be best placed to meet the changing needs of New Zealanders.”

The 2026 Healthcare Sector Insights Report also profiles Australian healthcare provider SmartCare and includes insights from MinterEllisonRuddWatts Special Counsel Liz Rowe on preparing for an ageing population.

The full 2026 BNZ Healthcare Sector Insights Report is available here.