Administrative Cost Savings Being Identified
Work is underway to consolidate the 12 existing Regional Health Authorities (RHAs) to a single Provincial Health Authority, anticipated to occur in fall 2017.
“As work begins on the transition, our goal is to ensure implementation occurs seamlessly and that the needs of patients are always our top priority,” Health Minister Jim Reiter said. “This is a significant change and there is a lot of work to be done. Our government is taking a thoughtful and planned approach to ensure this is done right.”
A transition team is being assembled that will include Ministry of Health, clinical and health system leaders. The team is tasked with developing a comprehensive plan to implement the new Provincial Health Authority. Along with a new governance and management structure, the team will be considering the consolidation of health system administration and clinical support services, and the potential savings associated with consolidation. The potential savings associated with consolidation are currently estimated in the range of $10-20 million by 2018-19.
Examples of potential savings include:
- Moving from 12 Boards to a single Board will save approximately $700,000 a year in Board governance costs.
- Approximately $160 million per year is spent on information technology across the health system (RHAs, Saskatchewan Cancer Agency, eHealth Saskatchewan and 3sHealth). Consolidation of information technology for RHAs provides the opportunity to save approximately $9 million per year.