Millions saved through South Island Alliance

CIPS 3 October 2013

District health boards in NZ saved nearly $2 million through regional procurement in the last financial year.

District health boards around New Zealand are saving millions of dollars by working together to reduce back office costs, with the savings reinvested back into frontline health services for their communities.

Health Minister Tony Ryall visited the Golden Bay Integrated Family Health Centre today. Their local DHB, Nelson Marlborough, saved nearly $2 million in back office costs through regional procurement in the last financial year.

“By purchasing goods and services together, from medical gases to postage-paid envelopes, DHBs are able to harness the power of bulk purchasing and get the most out of every health dollar,” says Mr Ryall.

“Last financial year, the five South Island DHBs made combined savings of nearly $15 million through the South Island Alliance regional procurement programme.

“The Alliance has also introduced a South Island wide programme for young people with eating disorders. Doctors in Nelson, Blenheim, Greymouth, Christchurch, Timaru, Dunedin and Invercargill are now able to provide effective therapy for young people and their families closer to home.

“The Alliance is currently working on number of IT projects, including a single patient administration system across the South Island. The goal is to give health professionals better access to their patient’s health information to improve patient care and clinical decision making.

“Along with Health Benefits Limited, the South Island Alliance is another good example of how patient care can be improved when DHBs work together,” says Mr Ryall.

The South Island Alliance is made up of representatives from the five South Island DHBs who work collaboratively to develop more innovative and efficient health services.

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