Health Minister Tony Ryall says it's unacceptable that the financial situation of district health boards continues to worsen.
The Crown Health Financing Agency told the Health Select Committee at Parliament on Wednesday that the combined deficits of the 21 boards will be $200 million by the end of the next financial year.
That's $40 million more than the figure the minister gave Parliament last week.
The agency says 15 DHBs are currently operating in deficit: seven are considered to be "at risk".
Mr Ryall told Morning Report a number of DHBs are going to have to work together and amalgamate some back office functions to make savings.