Regional south-west collaboration a real success story

A decade ago, 11 health services from Victoria’s south-west came together to form a regional supply collaboration – a shared model that provides each health service with increased purchasing power. To commemorate their 10th anniversary the group joined in an event at the South West Healthcare campus in Warrnambool on 10 April, and HSV was delighted to be invited to the celebrations.

The collaboration – between South West Healthcare and Casterton Memorial Hospital, Heywood Rural Health, Moyne Health Services, Portland District Health, Timboon and District Healthcare Service, Terang and Mortlake Health Service, Western District Health Service, Great Ocean Road Health, Colac Area Health and Hesse Rural Health – is a real success story for the region, which benefits from better pricing and a more efficient and stable supply chain.

“We’re so far from Melbourne and Geelong, this self-sufficient shared supply model – the only one of its kind in the state – just made sense,” says South West Healthcare CEO Craig Fraser.

“Working on the principle that every health service involved is a winner from the arrangement, we’ve been able to maximise our resources and personnel and reinvest savings back into the system.”

Nicholas Starkie, Director of Corporate Services at Western District Health Service in Hamilton, says the collaborative model has been a game changer for his health service.

“It’s been incredibly beneficial, whether that’s been from shared access to expert personnel within the model or reduced overheads by saving money on our own warehouses,” he says.

“We’ve greatly increased our purchasing power and been able to get more value from HealthShare Victoria’s contracts.”

The success of the shared supply model has given the Victorian Government confidence to invest in a new purpose-built Regional Logistics Distribution Centre (RLDC) facility for the group.

Located in Warrnambool, the one-year-old RLDC features a robotic retrieval system that sorts and distributes medical supplies in a highly controlled environment, as well as a fully automated laundry. It’s also where the anniversary celebrations were held, and guests were treated to tours of the state-of-the-art facilities on the day.

“We are very proud of our RLDC,” says South West Healthcare’s Chief Operating Officer Andrew Trigg.

“The group was committed to a centralised DC and laundry rather than contracting them out, and as a result we have an innovative, efficient and reliable service that employs 55 people and contributes $5 million annually to the local economy, while benefiting all the health services in the south-west.”

HSV has worked closely with health services in the region, particularly through the regional Chief Procurement Officer committee, and was keen to support the collaborative efforts.

HSV’s new Chief Procurement Officer Sarah Bryant attended the anniversary celebrations, and was impressed both with what the group has accomplished over the past 10 years and what she saw on the RLDC tour.

“It was wonderful to help celebrate this important milestone and see the marvellous facility in action,” Sarah says.

“It was gratifying to hear about the benefits that came out of these 11 health services working together – working together is the ethos behind HSV and how we are able to achieve savings and benefits for the entire Victorian health sector.

“I look forward to working with the south-west Victorian health services – and health services across the entire state – to help achieve savings on the healthcare products and services they need so they can better care for their patients,” Sarah says.

Alongside HSV, partner health services and members of Warrnambool City Council and council staff attended the event.

Above image: (from L to R) Andrew Trigg – South West Healthcare Chief Operating Officer, Craig Fraser -South West Healthcare CEO, Leigh Parker - Heywood Rural Health CEO, Sergio Lacchiana – HSV, Sandy Chamberlin - Great Ocean Road Health CEO, Mike McCrabb – HSV, Katharina Redford - Moyne Health Service CEO, Sarah Bryant – HSV, Aaron Atkinson - HSV

The RLDC in Warrnambool

Guests toured the modern facility

Photos courtesy South West Healthcare