Wednesday, September 07, 2016

Another failed privatisation effort

This year the government outsourced food at Southern DHB to international tax-cheats Compass. But the food was awful - so awful it endangered the safety of hospital staff. Other DHBs were understandaby reluctant to join the outsourcing deal. And now, the government has been forced to renegotiate it:

The 15-year hospital food service contract with the Compass Group had to be renegotiated because so few DHBs had joined, it has emerged.

Just six of 20 DHBs signed up, and others need to join in order to realise anticipated cost savings.

Official advice released by Dr Jonathan Coleman shows that officials told him earlier this year the deal was being renegotiated.

''Health Partnerships is working with Compass to renegotiate the contract to take a more holistic view of benefits, and derive improved value''.

Its unclear how much money this misguided "cost-saving" measure has lost so far, but its clearly significant. Sadly, the government has retained it rather than just sacking Compass and getting DHBs to do it themselves again. Which shows you that the real point of the policy wasn't cost-savings, but funnelling public money into the private pockets of multinational tax-cheats.