12 Oct 2015

Auditor General critises Crown company set up to make health savings

6:27 pm on 12 October 2015

The Auditor General has slated the work of a Crown-owned company set up to find $700 million in back-office savings at District Health Boards.

Health Minister Jonathan Coleman wound up HBL late last year, although he said its plans to get public hospitals to buy food and linen from one supplier would still continue.

Labour MP Annette King then asked the Auditor General to look into the company's performance.

A report released today said HBL tried to run an ambitious and complex programme, but its communication with DHBs was inadequate and it had no overall project management.

However, it said it did make some changes from early last year that improved things.