DHB Collective Procurement programme

Background

 

DHBs are significant purchasers of goods and services with annual non-payroll expenditure for Provider arms of approximately $2B. DHBs have signalled the importance of reviewing current procurement practices to identify the potential for generating cost savings and better health outcomes, and have established Procurement as one of the six priority areas in the DHBNZ Strategic plan. The Minister of Health is also seeking visible progress on DHB collective procurement activity.
In November 2006 DHB CEOs agreed to the principles, structure and key activities for the DHB Collective Procurement Programme. This programme is managed by DHBNZ and is governed by the CEO Group via the lead CEO and Procurement Steering Group.

The philosophy behind the approach to the programme is based on a network of DHB collective procurement activity.

The objectives of the programme are to:

• maintain quality and high clinical practice;
• reduce variation;
• ensure the best price possible for the tax payer; and
• achieve the best possible outcome for the total cost of ownership.

 

Scope

 

Provider Arm purchasing
Whilst ‘procurement’ entails much more than the purchasing function, the scope of the DHB collective procurement activity is restricted to provider arm purchasing at this stage. This therefore excludes contracts for health services (Planning & Funding activities). The intention though is to include a ‘funder’ perspective in the programme, and Planning & Funding teams will be included for communications and sector development aspects.

 

Principles

 

The principles for DHB collective procurement activity are:

1. Collective behaviour. DHBs to work collectively to reach an agreed, tenable national position.
2. Gain exceeding inconvenience. DHBs may experience some inconvenience if the overall gain from the collective activity is agreed to be of greater significance than their own initiatives or supply deals.
3. Recognition of local DHB responsibilities. The approach will ensure no ‘surprises’ to local DHB accountability under the Act, with decision making placed at the appropriate level.
4. Building on existing structures, activities and best practice. There are already strong, well established regional procurement groups and agency roles and activity. The strategy and programme will build on these existing structures.
5. Realising the benefits of competitive markets. Procurement initiatives will ensure competitive prices and quality for funders and/or consumers, and incentives for innovation.

 

Areas of activity

 

Projects currently in progress are:

• Insurance
• Oral health
• Equipment
• Mobile Dental Units
• Fixed Facility Designs
• Vehicles
• Fuel
• Orthopaedic Prostheses
• Wound Care
• Cardiac Stents & related devices
• Capital – Syringe Drivers

Other areas of activity identified for the future are:

• Theatre
• Laboratory consumables
• Major capital purchases
• Minor capital purchases
• IT hardware, software & telecommunications
• Energy

 

Health Procurement Custom gOOGLE Search

 

This custom search from Google (free to use) is a combination of resources from international procurement programmes and medical device suppliers. This search doesn't exclude other web content but preferentially orders the results for these websites. If you would like to add a site to this search engine please contact procurement@dhbnz.org.nz

 

Click here to enter the Health Procurement custom Google search.

 

Steering Group

Phil Cammish	Chairperson / Lead CEO (Bay of Plenty DHB)
Chris Morgan	Northern region (Auckland DHB)
Lloyd Nunns	Midland region (Waikato DHB)
Maree Hodgson	Central region (MidCentral DHB)
Derek Milton	Southern region (Nelson Marlborough DHB)
Brent Wiseman	CFO (Waikato DHB)
Ron Dunham	COO (Counties Manukau DHB)

 

PROGRAMME TEAM

 

GENERIC ENQUIRIES	procurement@dhbnz.org.nz
Support Coordinator	Christine Poole	(04) 803 5807
Acting Programme Manager	Don Shewan	(07) 576 8896
Insurance	Don Shewan	(07) 576 8896
Oral Health	Jon Herries	(04) 803 5813
Vehicles	Jon Herries	(04) 803 5813
Fuel	Jon Herries	(04) 803 5813
Cardiac Stents & related devices	Garth Blake	(03) 470 9470
Orthopaedic Prostheses	Garth Blake	(03) 470 9470
Wound Care	Garth Blake	(03) 470 9470
National Procurement Strategy	Garth Blake	(03) 470 9470
Road Show	Garth Blake	(03) 470 9470
Syringe Drivers	Garth Blake	(03) 470 9470