$98 Million in New Savings Achieved throughout Saskatchewan’s Health Care System

Released on March 24, 2015

Combined purchasing power has resulted in more dollars available to patient-centred care in Saskatchewan.  Resulting in $98 million in cumulative savings, joint contracting allows 3sHealth to contract to purchase services and products in bulk on behalf of health regions and the Saskatchewan Cancer Agency.

This process has reduced the cost of medical surgical supplies, drugs, and services like telecommunications and liability insurance while improving or maintaining quality and safety for patients, families and staff.

“I want to commend the health regions, the Saskatchewan Cancer Agency, and 3sHealth, for collaborating to identify savings which can be redirected to patient care,” Health Minister Dustin Duncan said.  “A high-quality, sustainable health system means care will be here for our children and grandchildren.”

Major cost savings were attained by developing joint contracts for medications ($44 million), surgical supplies ($33 million), dividends and rebates from high-volume orders ($9.0 million), lab supplies ($3.0 million), and utilities ($2.0 million).

The Saskatchewan health system has progressed toward standardizing product purchases across the province.  Joint contracts have also created higher-volume orders, which in some cases have produced the dividends and rebate savings from vendors.

The best product for purchase is identified through a robust process involving frontline staff, clinicians, and other experts across the health system.  All cost-saving initiatives have had to provide at least the same—if not higher—quality of patient care.

“By participating in joint contracts and other shared services projects, the health regions and Cancer Agency have reduced spending and made great strides toward creating a more sustainable healthcare system,” 3sHealth Board of Directors Chair Brian Barber said.

3sHealth (Health Shared Services Saskatchewan), in partnership with the health regions and Saskatchewan Cancer Agency, has surpassed their five-year target to identify $100 million in cost savings for Saskatchewan’s healthcare system.  Together with the system, 3sHealth has saved a total of $110 million as of February 2015.

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For more information, contact:

Tyler McMurchy
Health
Regina
Phone: 306-787-4083
Email: tyler.mcmurchy@health.gov.sk.ca
Cell: 306-537-3594