Te Whatu Ora has been criticised for telling public hospitals to bring the organisation back to budget, they need to make target savings of $105 million by July.
It said several districts have gone over budget in the past three months.
However, health unions have warned the constraints will impact medical care.
Former Te Whatu Ora chair Rob Campbell says we should be trying to improve our health system - not just saving costs.
"Once you get the emphasis on just saving costs, you end up cutting things that should not be cut."
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