The Health Minister believes Health NZ is funded enough, it's just not spending it well. 

Treasury warned that health spending's been increasing rapidly due to demographics, with costs increasing faster than inflation due to an ageing population. 

The total health system's estimated to cost $30 billion this year. 

Documents show Treasury suggested further cost cutting at Health NZ could require changes to services. 

Shane Reti told Mike Hosking there are clearly some vacancies to fill on the front-line, and some back-office positions that may not be needed. 

Health now accounts for 7% of GDP, which Treasury predicts is likely to reach 10% by 2061. 

Reti says they want to be wise users of taxpayers' money. 

He says New Zealand generally sits in the middle of the OECD around its spending compared to GDP. 

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