South Island Alliance working collectively to cut costs

9 December 2014

Alliance working collectively to cut costs

South Island DHBs have saved over $4million through initiatives in facilities and maintenance. By working collaboratively through the South Island Alliance’s Support Services group, DHBs’ facilities and maintenance teams have implemented new technologies and taken advantage of bulk buying contracts to reduce facilities and maintenance costs by $4.32 million.

Initiatives for savings included things like installing new more efficient boilers and light bulbs, renegotiating electricity contracts and collectively using one architectural and drafting contract for building works.

Chair of the Support Services group that undertook the work and Southern DHB Building and Property Manager Warren Taylor said the ability to share ideas was key to the successful cost reductions. “By being able to work alongside counterparts around the South Island we could each clearly see areas where we could find efficiencies and work together to negotiate contracts.”

“To save over $4million was a huge achievement and that money can now be reinvested in patient care and in further building and facilities initiatives. We always have to make careful decisions about how we prioritise maintenance and facilities upgrades, but by working together through the Alliance, we have been able to work more efficiently and stretch the health dollar further than before.”

Case Study: Nelson Marlborough DHB shift to energy efficient lights
One idea that has come into fruition has been Nelson Hospitals replacement of fluorescent lights with energy efficient LED lights. This is a huge job, with around 3600 lights needing to be replaced. However, the time and cost involved in the upgrading the old lights are well worth it when balanced against the benefits:

• Using low energy LED lights will reduce the hospital’s energy consumption by 10 percent
• Lighting quality is better for staff and patients
• LED lights are non-toxic, meaning less dangerous waste going into landfills
• LED lights also emit less heat, meaning a reduction in the level of air conditioning required

By being able to share ideas and develop best practise through the Alliance, South Island DHBs have been able to implement a whole range of initiatives like this one in Nelson Hospital that are improving efficiency in facilities and maintenance.

ENDS

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