The Government wants DHBs to collaborate and leverage their combined strength. In line with this the DHB Procurement Strategy was approved by DHB Chief Executives in May 2016.
The Strategy focuses on reducing complexity, and leveraging the capability of DHBs, PHARMAC and the Ministry of Business Innovation and Employment (MBIE), to increase real return on DHB investment in procurement.
This is a major step forward in delivering greater value for the health sector and patients.
The Strategy is being implemented through aligned annual planning and the implementation of the procurement operating model. Both under the guidance of sector’s first ever collective governance model, led by the Joint Procurement Authority.
A major milestone was achieved early March 2017 when the DHB Chief Executives unanimously approved the health sector’s new Procurement Operating Model.
The National Procurement Service is now operational at NZ Health Partnerships. This is the first step in the implementation of the procurement operating model and there remains much to do in the coming months.
Suppliers have been notified of the novation of contracts by healthAlliance (FPSC), thank you to those who have already returned a signed copy. If you have any queries please contact us via the email below.
NZ Health Partnerships will contact suppliers to finalise contract novation and progress inflight procurement projects.
NZ Health Partnerships continues to manage queries through the suppliers’ email Supplier.Queries@nzhealthpartnerships.co.nz.
Within the Operating Model, procurement activity is split into the following broad categories:
MBIE – syndicated sourcing, rules of sourcing and government direction provided by MBIE
PHARMAC – pharmaceutical and medical device procurement managed by PHARMAC on behalf of the sector (increasing over time)
National – procurement categories/opportunities and activities identified by the Joint Procurement Authority for a national approach and published in the Aligned Annual Procurement Plan. Undertaken initially by NZ Health Partnerships but over time may devolve to the most appropriate location (a centre of excellence type approach). Also includes the ongoing governance, planning and systems support for DHB Procurement.
Collaborative – procurement categories / opportunities and activities that are not classed as MBIE, PHARMAC or National. Groups of DHBs carry out the activity – working together for the common good. Collaborative procurement is governed by the Joint Procurement Authority and coordinated nationally by NZ Health Partnerships
Local – procurement categories / opportunities and activities that do not fit into any of the other classifications. DHBs procure/purchase for their individual use.
Have a question about national procurement or the operating model? Suppliers can submit a query by emailing Supplier.Queries@nzhealthpartnerships.co.nz. The FAQs on this page will be regularly updated based on the queries we receive.
National Procurement Service
The health sector’s new Procurement Operating Model (which supports the DHB Procurement Strategy) included responsibility for the national procurement service move from hA (FPSC) to NZHP from 1 May 2017. National contracts are now managed by NZHP.
Work in progress has transitioned from hA (FPSC) to NZHP. This work is now managed by NZHP.
hA (FPSC) continues to provide procurement services for the Northern Region DHBs but no longer manages national contracts.
DHBs will follow the existing process if they have a problem/question relating to a contract. Since 1 May 17 these questions have been managed by NZHP who will contact a supplier if necessary.
For most contracts a simple novation agreement has been put in place. However, some contracts are more complex or have multiple parties and these have been managed on a case by case basis.
If suppliers have not been contacted to date they should contact NZHP directly through the supplier mail box.
To contact NZHP the email address is Supplier.Queries@nzhealthpartnerships.co.nz
Electronic Data Interchange (EDI)
EDI is the electronic interchange of business information using a standardised format; a process which allows one company to send information to another company electronically and automatically rather than with paper. Web services can also be utilised as a method of communication between two electronic devices to exchange data over the internet and /or the Connected Health Network.
Delivers improved efficiency by reducing time and processing cost for supply chain related transactions such as ordering, invoicing, receipting and reduces the payment processing timeframes.
Delivers improved efficiency by reducing time and processing cost for supply chain related transactions such as ordering, receipting, invoices and payments. EDI also improves data accuracy and can reduce re-work rates.
Initial engagement with identified suppliers is forecast for late 2017. Engagement will be based on suppliers’ current EDI capability, compatibility and criteria yet to be agreed with DHBs.
Implementation will be rolled out in waves based on volume and capacity. With the HealthBiz Group (Waikato, Canterbury, Bay of Plenty and West Coast DHBs) the first wave of implementation.
Connection will be via Value Added Networks (VANs) and will utilise Web XML / SFTP.
Initially a panel of VANs will be established from which suppliers may select. In some instances other VANs may be considered subject to technical assessments and the volume of supplier transactions.
It is important for e-business systems to be fully protected against unauthorised access risks, therefore, sustainable electronic business requires, strong authentication, and privacy controls. Secure access via the Connected Health Network is one option for users and NZHP will provide more detail for users in the coming months.
Implementation will require suppliers to complete a range of data related assessments including data cleansing and alignment.
NZ Health Partnerships will provide guidance and an implementation pack of on boarding information. Costs associated with integration are borne by the supplier.
To achieve EDI integration the anticipated timeframe (including assessment and testing) is 3-6 months.
If you have a question about EDI implementation submit your query via Supplier.Queries@nzhealthpartnerships.co.nz
Alternately you can register your interest via the following link EDI and will be added to the EDI database and contacted nearer to the relevant wave of implementation.
GS1 data is used to enrich data (UOM, descriptions, GTIN etc.) when building the DHB National Catalogue.
Although it is not mandatory, GS1 data facilitates key input field matching and reduces transaction rejections.