SBC - Crown Entities

Appointments to Health Statutory Bodies
Information on a Particular Statutory Body

Residual Health Management Unit

The Residual Health Management Unit (RHMU) was established by the Health Sector (Transfers) Act 1993, continues under Section 57 of the New Zealand Public Health and Disability Act 2000 (“the Act”) and operates as a Crown entity for the purposes of the Public Finance Act 1989.

The RHMU was established to assume responsibility for all Area Health Board assets and liabilities that did not vest in Crown Health Enterprises, Regional Health Authorities, the Ministry of Health or other transferees at 1 July 1993 and to provide advice, assistance and some funding of last resort to Crown Health Enterprises and later, Hospital and Health Services when debt financing was required.

The introduction of a new Government policy in 2000 saw the establishment of the Crown Financing Agency (CFA) in June 2001, as the Crown’s lender to the DHB sector. The new policy was designed to transfer DHB debt from the private sector back to the Crown. The CFA is now a fully operational lending organisation. It provides a range of term loan facilities similar to those offered by the private sector banks and has established loan application, credit assessment and monitoring procedures.

The RHMU is also responsible for assisting the DHB sector to dispose of surplus property by either buying surplus DHB property for the purpose of selling it on the open market, providing an expert consultancy service to DHBs who wish to sell surplus property themselves or by holding properties by way of transfer or other means and managing as residual assets until disposal.

Key clients for the RHMU are the Minister of Health as the Responsible Minister for the RHMU, the Minister of Finance as Joint Responsible Minister for the CFA and Property, Ministry of Health, the Treasury, the District Health Boards (together the “key client group”) and others including individuals with unresolved claims against the public health system [from before 1993], some mental health patients and private sector banks.

The board of the RHMU consists of up to 5 members appointed by the Minister of Health. In making appointments to the board, the Minister must ensure that the board has a reasonable mix of expertise in the subject matters to which the functions of RHMU relate.

Board members receive fees of $14,900 per annum. These fees are in line with the Cabinet Fees Framework.