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29 January 2021

NZHP announces record results for 2020

NZ Health Partnerships (NZHP) achieved a record $26.8m annualised benefits for the 20 District Health Boards (DHBs) for the financial year 2019/20, representing an increase of $10.2m (or 62%) from the previous year.

“NZHP has shifted from being an output-driven company to one that is more customer, value and outcomes focused,” says Chief Executive Steve Fisher.

“While pleased with the results, we are strategically moving towards a model that ensures we deliver both financial and non-financial outcomes to our customers. This includes aligning our own performance goals with DHBs’ strategic objectives, in step with the wider health system’s commitment to broader health outcomes.

“Over the next 12 months, for example, only one of five of our team will be working on ‘traditional’ financially-driven benefits, while the majority will be focused on value-driven results such as risk mitigation and large scale IT and data-driven programmes.”

In 2019, NZHP began its strategic transformational journey, to ensure the organisation has the ability and capability to keep pace with the rapidly-evolving health system landscape, both now and in the future.

“COVID-19 further highlighted how important it was for us to adapt and change to best manage unforeseen demand and circumstances. At the height of the pandemic the critical need for a coordinated national approach across the health system became very evident,” says Steve.

“Like so many of our health colleagues, we had to pivot to adapt as the pandemic rapidly unfolded. Part of this was being more collaborative, innovative and customer focused.

“Fortunately, we had started laying foundations around a more agile, customer focused approach so were able to respond quickly and efficiently. Our National Procurement Team, for example, achieved more than (estimated) $30.0m in cost avoidance for the sector from March to June 2020 by negotiating with suppliers of PPE gear, Intensive Care Unit equipment and community lab testing supplies.”

Key 2020 results include:

  • NZHP’s record performance results equates to a 62% increase in benefits for our customers year-on-year. We delivered annualised benefits of $26.8m (up $16.6m FY 2018/19) to the DHBs.
  • NZHP managed its budget prudently generating a surplus of $0.7m, rather than a budgeted deficit of $2.9m. This was largely due to cost control and timings for our Finance, Procurement and Information Management (FPIM) programme, as well as cost controls for central management and support services.

2020 Highlights include:

  • NZHP strengthened its senior leadership capability and technical and delivery skillset across the organisation. This included appointing Steve Fisher as Chief Executive, rebuilding its Executive Leadership Team and appointing new NZHP Board Directors.
  • The FPIM Oracle Programme and FPIM Operational Service made great strides. The Programme is on time, scope and cost and the Service team is close to full strength.
  • National Procurement achieved annualised predicted benefits of $15.9m (against a target of $14.9m), up nearly 300% on the benefits achieved in the prior year.
  • The Shared Banking Service achieved benefits of $5.1m (up $1.1m for 2018/19).
  • The Collective Insurance Service achieved benefits of $5.8m (against the target of $5.3m).