The Government is investing $14 million over seven years into a $37.8 million public-provider research partnership to promote the new area of "precision-driven" healthcare, building on New Zealand's expertise in the health IT sector.

Listed software developer Orion Health and the Waitemata District Health Board, in collaboration with the University of Auckland, are the initial partners with others expected to follow in coming months.

Precision medicine is where all information relating to a person's health and well-being - clinical, genetic, devices, environmental and lifestyle factors - are combined and made available to the patient and health professionals to improve the level of personalised care.

Science and Innovation Minister Steven Joyce and Health Minister Jonathan Coleman jointly announced the new funding, saying the research will help to deliver more proactive and timely personalised care as well as reduce health system costs.

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Health research and health IT are strengths for New Zealand, and Coleman said the investment is aimed at producing innovations that can be commercialised globally, capitalising on the international growth in health IT and data analytics.

"Precision medicine is the future of health," said Orion Health chief executive Ian McCrae. "New Zealand can lead the world in this area."

Existing medical data sources don't enable personalised care because what's happened in the past is not the sole predictor of someone's future health, he said.

Other factors such as genetics, social circumstances, behaviour, and environmental exposure also come into play.

McCrae said he expects the results of the research to feed directly into the company's product range in time.

The $14 million in government funding comes through the Ministry of Business, Innovation and Employment's research partnerships programme, along with $23.8 million in industry and end-user funding, including a personal contribution from McCrae.

That's despite MBIE's partnership programme being suspended while a "focused review" is under way to check alignment with the strategic direction of the new National Statement of Science Investment and other current funding mechanisms. The review is expected to be completed by mid-year.

- BusinessDesk