Health negotiates single national Microsoft contract

eHealthNews.nz: Infrastructure

Health negotiates single national Microsoft contract

Thursday, 9 December 2021

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NEWS - eHealthNews.nz editor Rebecca McBeth

The Ministry of Health will manage a new national contract for Microsoft services for the sector, with expected savings of $27 million over the first three years.

The Ministry has contracted Spark Health as the local service provider for the Microsoft agreement.

Group manager digital strategy and investment data and digital, Darren Douglass, says the deal will support reform of the health and disability system and deliver improvements in the health system’s cyber-security protection and resilience.

The Microsoft agreement, worth an estimated $45 million annually, will cover the Ministry, Health NZ, Māori Health Authority, and district health boards (DHBs) and their shared service agencies.

From 12 November 2021, the Ministry will manage both the Microsoft and the Spark Health LSP contracts on behalf of the health sector.

“It makes sense to take a more strategic approach across health agencies as we move to a new operating model for the health and disability system,” says Douglass.
“That way we can get the most value from our investment for the benefit of health care for New Zealanders. Technology is a key enabler for the reforms and these arrangements give Health NZ and the Māori Health Authority the tools they need right from the start.”

Government agencies typically contract individually with Microsoft under a single All-of-Government Head Agreement negotiated by the Department of Internal Affairs every three years.

This agreement was due for renewal this year and as part of the renewal process a health sector-specific variation was negotiated to provide the health sector with additional concessions.

During those negotiations the Ministry of Health and DHB CIOs decided to consolidate Microsoft licence arrangements as part of the renewal process and develop a shared strategic roadmap to maximise value from the investment and ensure consistency in the use of Microsoft technology across health agencies.

“The new contract offers the public greater confidence in the technology systems and services being used across the health and disability system,” Douglass says.

“A lot of this technology underpins the digital services provided to primary and community health organisations, so it makes sense to be consistent.”

The agreement also includes the increased deployment of Microsoft cyber security technology across health agencies which will improve protection and resilience to cyberattacks on health systems and services.

Spark Health chief executive Will Reedy says the organisation was already LSP for 16 of the country’s 20 DHBs and going to a national construct will drive significant cost savings for the sector.

Spark Health’s national team of experts in Microsoft licensing will also be encouraging DHBs and other health organisations to move onto the Microsoft Azure Cloud, first to data centres in Australia, then to New Zealand when these are built.