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16 July 2021

Aggregation delivers $400,000 benefits to two DHBs

NZ Health Partnerships (NZHP) helped negotiate a joint procurement and maintenance contract for medical imaging equipment for the Whanganui and Taranaki District Health Boards – delivering $400,000 in benefits to the DHBs.

Anil Sharma, NZHP
Anil Sharma, NZHP

The opportunity to secure the joint contract arose when Whanganui DHB approached NZHP for advice with its procurement process for new medical imaging equipment – at the same time, NZHP was assisting Taranaki DHB with negotiations to procure similar equipment.

“This created an opportunity for our team to work on behalf of both DHBs – for Whanganui we achieved savings of over $100,000, while for Taranaki, we managed to save over $300,000,” says Procurement Category Manager, Anil Sharma.

These outcomes demonstrate the value that can be realised by aggregating procurement needs across different DHBs.

“Although aggregation is already happening between DHBs – neighbouring health boards regularly work together on procurement opportunities – there is opportunity to do more,” he says.

“The real opportunity lies in scaling up such regional arrangements to the national level, which is where the greatest benefits by DHBs working together on procurement can be achieved for our healthcare sector.” tional