Linen and Laundry savings options to be considered by DHBs

16 April 2013

Linen and Laundry savings options to be considered by DHBs

Government-owned Health Benefits Limited has shared with District Health Boards a proposal that could deliver more than $7 million a year in savings on linen and laundry services.

Any savings from the work HBL does with the sector are available for spending elsewhere in health. The Indicative Case for Change for Linen and Laundry Services includes options for DHBs to consolidate some services and potentially work with commercial service providers. All options would still require services to be provided at a local level.

A significant portion of DHB linen and laundry services are already outsourced, while some DHBs provide their own linen and laundry services. For example, linen and laundry services for Taranaki, Whanganui, MidCentral, Wairarapa and Hawkes Bay are provided by a DHB-owned company that also provides some services to Capital and Coast.

At this time, HBL remains open to how DHB linen and laundry services should be delivered and no decisions have been made.

HBL has shared its indicative findings with DHB staff and unions and over the next few months will consider their feedback in developing a business case with recommendations for change. HBL has an agreed process with the sector, including a process for consultation with staff and unions, to be undertaken before any final decisions are made. This includes processes that recognise the vulnerable worker status that protects staff working in these services.

HBL is also working closely with DHBs and advisory groups to ensure health and safety, infection control, patient satisfaction, and culturally acceptable practices are part of any recommended solutions. Some of the work that is being carried out involves a market process where commercial providers have been asked to submit ideas. Therefore HBL is unable at this stage to disclose further details publicly about potential savings or how services might be provided.

In putting together its case for change, HBL also identified potential savings that can be gained simply by sharing best-practice ideas in the way linen services are currently provided, as well as by standardising and reducing the range of linen items that are used in hospitals.

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