Wellington, July 7 NZPA - The Government has confirmed that a shared services agency will be established to harness the power of bulk purchasing for the public health service.
Health Minister Tony Ryall said today getting better value from smarter purchasing was one of the key recommendations from the ministerial review group's report on minimising administrative costs and bureaucracy.
It has been estimated that up to $700 million can be saved over several years.
Former managing director of Progressive Enterprises, Ted van Arkel, has been appointed to chair the new shared services agency.
Mr Ryall said the money saved would be crucial to helping maintain and improve frontline health services.
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