Newshub can reveal Health New Zealand has told hospitals to look at cutting vacant roles and limiting overtime.
Healthcare unions say the restrictions are tantamount to a hiring freeze and are already impacting frontline health services.
The Government has rolled out a line this month about the public sector cuts.
"As I've said before, I want more medical doctors not more spin doctors," Prime Minister Christopher Luxon said.
Despite that, Newshub can reveal Health New Zealand has told hospitals to restrict staffing.
"You can call it a freeze, you can call it a cap, you can call it a lot of things. But from where we look, it certainly looks like no more additional staff coming on board at a time when our health system's in a serious crisis," said New Zealand Nurses Organisation (NZNO) CEO Paul Goulter.
Newshub has obtained an email from Health NZ to the sector, saying because it's currently operating in a deficit, restrictions are needed including:
- Encouraging staff to take annual leave especially Friday, April 26
- Banning double shifts
- Enforcing lunch breaks to avoid extra payments
- No cover for sick staff, excluding night shifts
"The limits on staffing that seem to be being proposed mean that it will be potentially unsafe in terms of staffing of services," said Association of Salaried Medical Specialists (ASMS) executive director Sarah Dalton.
"We are required to find efficiencies through the system and Health NZ is required to as well. But those efficiencies are turned back into the frontline to deliver safe and satisfactory services for New Zealanders," said Health Minister Dr Shane Reti.
The restrictions also included reviewing whether vacant roles need to be filled or even whether to cut the jobs entirely.
"Just in the past few days, I've heard of the inability to increase medical oncology services that are needed in provincial areas, of a previously approved obstetrics and gynaecology appointment that now may not happen," Dalton said.
Labour says it's a "broken promise".
"National said there'd be no cuts to frontline services, but there were positions with people being lined up and now Te Whatu Ora is being told not to hire," Labour's health spokesperson Dr Ayesha Verrall said.
But Dr Reti denied it's a broken promise.
"No this is not. Services to New Zealanders are protected," he said.
Health NZ told Newshub it's reminding its people of some of the things they need to do to ensure hospitals live within their means and are as efficient as possible.
"I expect Health NZ to manage this operationally and to provide safe and effective services," Dr Reti said.
"If cost savings are being requested that will have a flow-on effect to frontline services," said Dalton.
Services now facing a freeze - right before winter.