HBL is a shared services company set up to help DHBs deliver quality healthcare at a lower cost by working smarter and reducing duplication and administrative costs. HBL is owned by the New Zealand Government and is mandated to find ways of delivering greater quality to health delivery through more efficient processes.

What is HBL's role?

HBL's role is to facilitate and lead initiatives that result in savings and efficiencies for District Health Boards (DHBs) on non-clinical initiatives.

The establishment of HBL is a critical development to progress the wider work programme for transformational change in the health sector.

What are HBL's objectives?

HBL's longer-term business objectives are:

• growth in year-on-year savings to the health sector that flow from initiatives developed and implemented by HBL;
• more effective provision of administration and support services;
• and a better level of support to sector decision makers.

More detailed objectives, intentions and performance measures are contained in the company's Statement of Intent. Link to SOI

Where will savings be achieved?

Work so far has highlighted administrative and support services such as finance and accounting, human resource management, procurement of clinical and non-clinical supplies and services, executive and corporate services, and information systems as areas where savings are likely.

Will this affect the number of staff in DHBs?

There are a significant number of people employed in providing administrative and support services to DHBs and so sharing those services is likely to reduce the need for some of those positions. Any change is likely to be managed over several years. If there is an impact on people then unions and other bodies will be involved.

How will these changes affect patients?

These changes are being made to provide better, sooner, more convenient health services to patients. Smarter buying and co-ordination of resources means the cost of buying goods, services and supplies will fall, freeing up resources for frontline health services. In many cases this will mean services will be maintained in the face of increasing costs and tight fiscal conditions.

How is the HBL approaching its work?  

We are working closely with the Ministry of Health, District Health Boards (DHBs) and other stakeholders and we welcome input from the wider health sector. Our current focus is on developing a strategic approach to future shared services work, structures and priorities for consideration by Government.

How does HBL build on the shared services work DHBs and other areas of government already have underway?

This is part of an ambitious process of reform in the health sector and wider government procurement. It means using best practice and, in many cases, doing things differently. The expertise of the DHBs continues to be important and the groundwork they have done is invaluable. While there are some good initiatives in place or under way, a push is needed to accelerate progress and make sure opportunities are seized.

Will health professionals/clinicians be involved in choices of equipment they use?

Yes.  We will design decision-making processes for procurement and selection, to include clinical input. Health professionals and clinicians value the benefits of standardisation and reduced waste, particularly when it frees up resources for frontline services.

What feedback has been received from the sector on potential shared services arrangements?

Engagement with the health sector is a priority for the HBL Team. Feedback from workshops we have held so far supports our company's work.

A summary of workshop feedback is available here: Link to Updates

What happens next?

HBL is developing a series of transformational roadmaps for change and is engaging with the health sector to look at how they will be implemented. We will update our work on this website.