3 Jul 2014

Ebos model could be exported

7:52 am on 3 July 2014

Ebos' 10-year contract to provide the warehousing and distribution of medical and non-medical products to all public hospitals is likely to be exported to Australia, managing director, Mark Waller says.

Mr Waller said district health boards (DHBs) had different IT systems and there was no standard database, so no accurate figures were available on the value of the New Zealand contract.

However, Health Minister Tony Ryall has estimated about $1 billion worth of product will be covered.

Mr Waller said the new contract, which would take effect from the beginning of next year, would mean much greater efficiency and cost savings for the health system.

"Pharmac will eventually go out category by category starting next year to tender for all products.

"Whereas at the moment, a small DHB doesn't get the buying power of the bigger ones, we're going to have a situation where the national volumes will be aggregated and Pharmac will go to tender to get the best prices for the hospitals.

"I think it's really exciting because the model is actually exportable. New Zealand will be leading the world."

Mr Ryall had told New South Wales Health about the model and it had already expressed interest in following a similar model.