The Director-General of Health is to step down as the head of the Health Ministry, sparking widespread speculation within the sector that he has been forced out.
Stephen McKernan has been the country's top health official and chief executive of the ministry for almost four years.
He moved into the role after heading Counties Manukau District Health Board in Auckland and, before that, Hutt Valley DHB in Wellington.
Mr McKernan says he decided not to seek reappointment when his contract ends in late July, saying it was a decision between him and his employer, the State Services Commission.
He says he made his decision to allow time for a replacement to be found, and will now focus on managing major organisation and system changes that are under way at the ministry.
Radio New Zealand's health correspondent says it is a crucial time for the ministry as it continues reducing overall staff numbers and restructures again to accommodate the new National Health Board established late last year.
Mr McKernan says he is discussing options for his longer term future.
Union reaction
The senior doctors' union says his departure will send shock waves through the health sector.
The Association of Salaried Medical Specialists says Mr McKernan has given the Government advice it may not always have wanted to hear and the sector, which is undergoing restructuring, needs that.
The union says it hopes Mr McKernan's decision is not due to political opposition or negativity.
Its executive director Ian Powell says Mr McKernan has been a remarkable leader.
The Council of Trade Unions says it is not clear why Mr McKernan is leaving and it would be concerned if Health Minister Tony Ryall played any role in suggesting he should not reapply.
Mr McKernan told Radio New Zealand the decision was his and Mr Ryall did not make it for him.
