Pacific health provider eyes closure due to funding clawback

A health clinic in South Auckland is considering redundancies or closing down due to a Covid-19 funding clawback.

Ōtara-based South Seas Healthcare has been asked to return more than $15 million, and could face legal proceedings if a recovery agreement was not reached.

It comes after Whatu Ora Health NZ carried out an audit of pandemic-related spending, with particular scrutiny on practices who received higher levels of funding including Etu Pasifika, The Fono and Baderdrive Doctors and the Cause Collective.

South Seas Healthcare Trust chief executive Lemalu Silao Vaisola-Sefo defended the spending as necessary, and said they are working to resolve current disagreements.

Southseas Healthcare was instrumental in vaccination drive through during the pandemic. Photo / RNZ Dom Thomas

“The period covered by Health NZ’s audit reflects the highly unusual operating conditions of the Covid-19 pandemic, during which South Seas and community partners rapidly expanded its operations and delivered an unprecedented response.”

Lemalu defended the use of funding and said their response went beyond what mainstream health providers were able to offer.

“Our team worked 24/7 for three months and had to stand up support with very little notice.

“Testing stations were set up overnight where the local DHB [district health board] did not have capacity, people in lockdown were provided with food and other essentials who would have otherwise gone without … the strain on our staff and on our systems was immense.”

Southseas Healthcare based in Ōtara is under threat of closure due to massive clawbacks. Photo / Ōtara Business Association

South Seas Healthcare tested 100,000 people and went on to provide 115,000 vaccinations, including 54,500 Pacific people, and 70,000 families were supported with well-being packages, Lemalu said.

“People in lockdown were provided with food and other essentials who would have otherwise gone without, and the Samoan Assembly of God outbreak was contained because of the trust South Seas Healthcare has in the community.”

The Health NZ audit found uncontracted spending relating to work such as traffic control and the laundering of scrubs.

However, South Seas has since completed an independent audit which found no misuse of funds, Lemalu said.

Dr Api Talemaitoga was "pissed off" and "disgusted" by the audit. Photo / RNZ

Specialist GP Dr Api Talemaitoga told NZ Doctor he was “pissed off” and “disgusted” by the audit, which applied hindsight to a critical and uncertain time.

“You leaned on these people to look after the most vulnerable communities, and now you are coming at them with a hammer?”

The report by Health NZ made a number of recommendations about the organisation’s administrative systems, which Lemalu said they were implementing, but it would require some cuts.

“We have had to reshape our operations, which will involve a restructure of our workforce and our board, this may result in some redundancies.

“We are unable to make further comment on these matters while employment processes are underway and as we continue our contractual negotiations with Health NZ.”

Local board member Dr Ofa Dewes our Pacific communities need to be supported. Photo / Auckland Council

A lack of trust

Ōtara-Papatoetoe Local Board member and Pacific health professional Dr Ofa Dewes said providers such as South Seas had longstanding relationships with patients and were vital to the community’s health needs.

“They have significant years of experience collectively and are living in the community with our Pacific peoples and supporting them and making sure that we receive the services that we deserve.”

Dewes said the pandemic was a harrowing experience with health providers on the front line, and their expenditure should not be denied retrospectively.

“Pacific peoples and communities took the leadership to ensure that our families, our close connections in the community, received the support they required and the correct messaging around COVID.

“And if clawing back funding will result in a service provider having to shut down, that is going to be detrimental to our Pacific communities.”

Chair of the Ōtara - Papatoetoe local board Apulu Reece Autagavaia says “Our providers know our communities, they need to be supported to ensure our people do not continue to be at the bottom of health statistics.” Photo / File

Chair of the Ōtara-Papatoetoe Local Board Apulu Reece Autagavaia cautioned the government about using a “one-size-fits-all approach” to healthcare.

“During the COVID-19 epidemic, we finally saw our Pacific health providers being given the support necessary, which saw our Pacific people react to messaging and saw immunisation rates increase.

“Our providers know our communities, they need to be supported to ensure our people do not continue to be at the bottom of health statistics.”