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DHBs Endorse Strategic Approach To Procurement

Contributor:
Fuseworks Media
Fuseworks Media
DHBs Endorse Strategic Approach To Procurement

The 20 District Health Boards (DHBs) welcome the OAG report on procurement presented to Parliament today.

20 DHBs' spokesperson Peter Glensor says the report was developed over the three years 2006 to 2009 and includes information from a sample of DHBs. The 20 DHBs provided comment on an earlier draft. The report recommends a coordinated approach to procurement activity as well as the need for appropriate procurement skills and resources in the sector.

"DHBs absolutely endorse these recommendations and have been active in these areas," he says. "DHBs have done considerable work in the past few years to strengthen the way procurement is carried out in the health sector.

"We have developed a Health Procurement Strategy, a network of health procurement specialists, a number of significant savings projects across 20 DHBs, action on infrastructure, definitions and IT, and we have agreed on a methodology to record procurement savings which is now being used by all of the DHBs. We have also engaged with whole-of-government procurement activity.

"We're already seeing results from that work. In the past year the 20 DHBs saved $53.1 million on health procurement, exceeding the year's target of $45 million in savings, standardisation and capability improvements by 18 percent.

"This work is being taken forward by the Government's new shared services agency, Health Benefits Limited. DHBs have established a close working relationship with HBL and this will be very useful in helping us to focus effort and manage risks around all aspects of health procurement activity.

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