Released on January 10, 2017
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:
A reduction in salary expenses for senior executive level positions across RHAs is also anticipated. An estimated dollar value will be determined as transition planning develops a new Provincial Health Authority structure.
- 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.
“We are in the beginning stages of the transition process, so the potential cost savings range is a very early estimate,” Reiter said. “There will be costs associated with implementation in the first year, including some severance, with savings anticipated to begin in 2018."
“While cost savings will be the product of improved co-ordination and integration of health care services, it is not the primary objective. The move to a single Provincial Health Authority is being driven by our government’s continued commitment to improving front-line patient care for people across the province.”
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