News release

Province, District Health Authorities Move Forward on Merged Services

Health and Wellness

The province, the nine district health authorities and the IWK today, March 1, announced the merger of several administrative services that will bring savings of up to $8.8 million, which are needed to protect patient care.

"The merging of these services makes sense -- it will focus resources on patient care by reducing administrative cost and it will help the province get back to balance so that we can protect important public services," said Health and Wellness Minister Maureen MacDonald. "Without change, the system as it exists today is not sustainable. I commend the CEOs and the boards of directors for their leadership on this issue."

The province and the district health authorities and IWK asked Ernst and Young to analyze whether savings could be found by having DHAs and the IWK work together in some areas. After considering the final report, the province and district health authorities agree to merge services in:

  • general administration
  • supply services (purchasing)
  • finance and payroll
  • some laundry consolidation

The province will also look for opportunities in human resources and information technology and telecommunications, although those will take longer because of the complexity of changing IT and the need for stability in human resources to facilitate mergers in the other areas.

"The province won't be acting on all of recommendations, including the option to contract out services to private companies," said Ms. MacDonald. "It would be too disruptive to the health care system and employees."

This initiative builds on work from last year when district health authorities and the province reduced administrative spending as part of annual business planning. These savings allowed government to invest more in programs like home care and funding palliative care drugs for people at home.

Today's announcement will mean a further savings of $7 million to $8.8 million over the next 18 months. These new savings from reduced administration will include a decrease in the number of executive office positions required by DHAs. Over the next 18 months, they will eliminate 11 to 20 vice-president and director positions.

Pat Lee, CEO of Pictou County Health Authority, said Ernst and Young made recommendations based on efficiencies, patient care and service quality as well as the impact on employees and communities.

Based on successes already, the CEOs and province are confident these savings will be achieved.

"This is the right thing to do," said Mr. Lee, the executive sponsor of the merged services project. "Not changing is not an option. Innovation and doing things differently is part of a collective direction for the districts, the IWK, and the province. It is about providing administrative and support services efficiently and this model will do that."