BUDGET SAVINGS INITIATIVES

47 Dr McFETRIDGE (Morphett) (1 June 2010). How does the State Government expect to achieve the $81 million in savings initiatives (as outlined in the 2008-09 Budget) and which programs and services will be reduced to meet the required savings targets?

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts): I am advised:

The Health Portfolio was required to meet savings as part of the 2008-09 Budget of $81 million over the three years 2009-10 to 2011-12.

The Procurement and Supply Consolidation Project, identified in the 2009-10 Budget is expected to achieve savings of at least $44.1 million over the next four years 2009-10 to 2011-12, with $8.1 million expected in 2009-10.

Through the Procurement and Supply Consolidation Project, SA Health is consolidating warehousing and procurement/purchasing activities and introducing best practice supply chain initiatives. In addition, this project will streamline suppliers, product range and implement a common procurement and supply chain system to increase efficiency and improve the quality and safety of services and supplies.

A range of initiatives are also in the early stages of being developed to ensure improved efficiencies in service delivery across the Health Portfolio to meet required savings targets from the 2006-07, 2007-08, 2008-09 and 2009-10 Budgets.

The savings strategies to achieve SA Health's remaining savings targets include the review of portfolio wide support functions. These strategies will not affect frontline health care services.