Michael Cashin

Wellington, Nov 20 NZPA - A collection of high-powered people have been appointed to a board aimed at saving District Health Boards (DHBs) millions by consolidating backroom functions.

The board was among a swathe of changes Health Minister Tony Ryall announced in October as part of health reforms.

The shared services establishment board would consolidate DHB backroom functions such as payroll and purchasing; strengthen regional cooperation in service planning and delivery and see $2.5 billion devolve from the Health Ministry to DHBs.

Mr Ryall expected a one-off cost of $5 million to $10 million to make the changes, but up to $700m to be saved in the first five years from coordinating procurement and logistics.

Mr Ryall today said the board would be chaired by Michael Cashin, the chairman of Wellington Waterfront Ltd and former chairman of Housing New Zealand, and the former state-owned enterprise, At Work Insurance Limited.

The other members of the board were:

* Paula Rebstock, deputy chairwoman of NZ Railways Corporation, former chairwoman of the Commerce Commission;

* Dr Lester Levy, chair of Waitemata DHB with medical practitioner with management and governance experience;

* Brent Esler, chief executive of Combined Rural Traders Society Christchurch;

* Chris Lowry, who has nurse and hospital general manager experience.

"This is a strong board containing real expertise and experience in improving back office efficiency, such as in payroll systems and procurement," Mr Ryall said.

"The members will be focusing on stopping duplication and waste caused by DHBs reinventing the wheel 21 times. All savings will go back into frontline health services."