Health New Zealand outsources radiology to meet soaring demand
WELLINGTON, NEW ZEALAND — Health New Zealand Te Whatu Ora (HNZ) is turning to outsourcing to address the overwhelming demand for radiology services in the country’s Southern Health District.
This decision comes as the district faces an unprecedented need for radiology procedures, with HNZ planning to outsource 89,589 procedures, more than any other region in New Zealand.
Rachel Haggerty, HNZ’s Director of Strategy and Planning, emphasized that this move is essential to meet “all available demand” in the district.
“We are seeking to get better value for our patients across the country,” she stated, highlighting the historical differences in service levels across former health board districts as a contributing factor to the current situation.
Nationwide tender to address workforce shortages
This marks the first time HNZ issued a tender for radiology services on a national scale. Hamish Brown, HNZ Southern Operations Director, pointed out that the global shortage of healthcare workers is impacting both public and private radiology providers in New Zealand.
“While we do have vacancies within our radiology workforce, we are mitigating the impact through a number of outsourcing arrangements across the district,” Brown explained.
This approach aims to ensure the continued delivery of radiology services to patients despite workforce challenges.
Balancing public and private sector involvement
The outsourcing strategy aligns with a broader trend observed over the past three years, as the demand for radiology services has doubled globally over the past decade.
Haggerty noted that the private sector has been able to invest more rapidly than the public system, making outsourcing a viable option.
“We’re working on keeping a balanced system. We want to build constructive relationships between the public and private sector,” she added.
HNZ is considering applications from a variety of private radiology providers in New Zealand and Australia to ensure a competitive and open tender process. Digital technology also allows for some radiology procedures, such as reading X-rays, to be conducted remotely, further broadening the scope of outsourcing.
Ensuring access and quality in healthcare
Despite the necessity of outsourcing, Haggerty stressed the importance of equitable access to healthcare.
“Certainly, radiology is one of those areas that is identified where there was a difference, and this approach is part of addressing it,” she remarked.
The ultimate goal is to provide a high-quality service that offers good value for money while prioritizing the needs of communities and patients.
The decision to outsource comes in the wake of a high-risk score given to Dunedin Hospital’s radiology department by International Accreditation New Zealand last year.
