Tenders for metro hospital catering services to be called

1/12/95

Tenders will be called over the next few months to provide catering and other support services in metropolitan public hospitals, Health Minister Graham Kierath said today.

The decision to call tenders followed recent reviews which indicated that competition could achieve significant savings and improve the quality of caring and maintenance services.

Mr Kierath said the Government would ensure the quality of any services contracted out was maintained or improved and would regard the ability to offer work to current staff as a priority when assessing tenders.

Savings from the process would be put back into the health system and used to improve health care services for patients.

"It is critical that as much of the health budget as possible is used to provide actual health services," Mr Kierath said.

"The more efficient support services such as catering and cleaning are the greater the proportion of the budget we can put back into patient care.

"The review shows that private sector expertise can help us achieve that goal.

"However, for a tender to be successful the services offered by the private sector must be equal to, or better and cheaper, than the existing service.

"The opportunity also exists for staff to tender to buy out the operations in which they currently work."

Mr Kierath said the need for change was driven by increasing costs and demands on the health budget and the Government had no choice but to seek ways to improve efficiency.

Health costs already consumed a quarter of the State Budget and it was imperative that taxpayers received the best possible value for their money.

Metropolitan hospitals, for example, served the equivalent of 5.35 million meals a year at a cost of about $32 million.

It was likely that private sector expertise and economies of scale could provide high quality food services at better value for money, and that there would be similar advantages in cleaning and other building-related services.

"The decision to seek the involvement of the private sector is not a reflection on the work done by hospital staff," Mr Kierath said.

"Rather, it is a recognition that public sector practices are not always the most efficient way of doing things.

"We want to ensure staff are looked after and the ability to offer on-going employment to staff will be a priority when tenders are evaluated.

Staff who do not obtain work with successful tenderers will be found alternative positions in the public sector.  Voluntary severance will be available on a restricted basis only."

Mr Kierath said an expression of interest (EOI) would be advertised in the weekend press for people interested in tendering for contracts to provide cleaning and other building-related services.

EOIs had already been called for catering services, and these tenders would be limited to those organisations which had responded, or any employee buy-out groups who wished to compete for contracts on their site.

The first round of tenders would be for catering services at several metropolitan hospitals and would include the sale of Healthcare Foods, the facility which prepares meals for a number of WA public hospitals.

Tenders would also be called to provide maintenance services, gardening, security, cleaning and other 'hotel' services at metropolitan public hospitals.

Media contact:  Caroline Lacy 222 9595 or 481 2133