About Us
Savings Methodology
Savings are largely the result of:
- Contracting, which is a collaborative process with the health system that has reduced the cost of medical surgical supplies, drugs, and services while improving or maintaining quality and safety for patients, families, and staff. Running competitive processes and leveraging volume consolidation within the Saskatchewan health system are some key factors in obtaining the best value for the province, including financial savings;
- Implementation of the provincial linen service in 2015, which has produced health system savings of $50 million in capital cost avoidance and an estimated operational savings of $4.2 million annually; and
- Operational savings achieved through the provincial implementation of dictation and transcription services, which reached a "break-even" point in July 2018, at which point initial project investment had been fully recovered. The health system redirected all subsequent savings to 3sHealth's partners and to the deployment of self-edit dictation software.
As of March 31, 2024, 3sHealth has generated 3sHealth has generated $701.43 million in cumulative shared service savings. This figure includes the following:
- $57.22 million in cumulative recurring contract savings from 2010 to 2023;
- $4.21 million in recurring linen operational savings;
- $631.05 million in prior year cumulative savings (this includes the additional $4.21 million in recurring linen operational savings); and
- $8.96 million in net new savings in 2023-24, consisting of:
- $0.86 million in contract savings;
- $7.58 million in contract rebates; and
- $0.52 million in operational savings.
Historically, 3sHealth received its revenue from a combination of fees for services as well as Ministry of Health funding. As of April 1, 2018, 3sHealth no longer receives funding from the Ministry. Instead, 3sHealth implemented a self-sustaining funding model, which allowed 3sHealth to gain revenue through fees for services as well as contract rebates and dividends generated through the provision of provincial contracting and linen services.
Related Files
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Health Shared Services Saskatchewan - Statement of Cumulative Savings
To provide additional assurance to our stakeholders on the savings we report, we engaged MNP to perform an external audit. MNP’s audit opinion and the statement of cumulative savings for the seven-year period ended March 31, 2017 can be accessed here.