New technology is a major factor driving up costs in the health sector, Health Minister Tony Ryall says.
Sector leaders are considering what changes will be needed to ensure the public health system remains sustainable while confronting a growing and ageing population, and workforce and funding constraints.
Mr Ryall says Treasury research has shown that in the past decade, the cost of health rose by 4%.
New technology accounted for health sector cost increases over the period of almost 2% compared to less than 0.5% related to the ageing population.
"What that tells you is we can do all we like about managing the ageing population and moving services into the community, but actually controlling the cost of new technology and the cost of the services that we currently deliver is where the biggest savings can be made in health."
Fisher & Paykel Healthcare, the country's biggest medical technology manufacturer, says new technologies can in fact save large amounts of money in health.
The firm has been developing a humidity therapy for patients with chronic obstructive pulmonary disease who may experience a serious worsening in later stages of the disease.
Chief executive Michael Daniell says huge cost savings are possible if the device helps keep patients out of hospital but in the three years since it was introduced has been used with less than 1% of potential patients.
