THE COLONIST. FRIDAY, FEBRUARY 20, 1920. PURCHASING FOR HOSPITAL BOARDS.

Colonist, Volume LXII, Issue 15306, 20 February 1920, Page 4

THE COLONIST. FRIDAY, FEBRUARY 20, 1920. PURCHASING FOR HOSPITAL BOARDS.

A disquisition on economics finds a place among the reports and tabulations which form the greater part of the contents of the "Journal of Public Health" for January. It is a.present-' ation of the case for a central purchasing organisation for Hospital Boards. A circular, it appears, has been sent to every local board covering schedules of articles most commonly used in hospitals, an attempt having been made in compiling the schedules to achieve something in. the nature of a preliminary standardisation as .regards materials, sizes, qualities, etc.; and boards have been invited to notify the Public Health Department of their requirements in order that a consolidated order may bo i>taccd direct with the lnaivufajoturing houses with a view to bedrock prices being obtained. As tho articles are to be despatched direct from the factory to the hospital store, it is held that considerable overhead charges should be avoided. Further than this, the department will make no administrative charges for undertaking the work. In addition to tho schedules which have been forwarded, other schedules have been prepared of articles of New Zealand production, with 3: view to the obtaining of quotations, of which Hospital Boards can avail themselves. The article in tho department's "Journal" anticipates objections to the action summarised above, and claims that they are unsound. It icitcs the fact that Australian hospitals have combined for the purpose of tho purchase of supplies, and buy direct from the factory through a central board of supplies. Public institutions, it is contended, are entitled to buy in the cheapest market possible, and it is claimed that it is the diaty of the representatives of the public, to protect the interests of the public as a. whole. In the course of an ela-borate argument, the "Journal" says: "So long as business is conducted on the present lines, everyone who can go into the market with an order Targe enough to obtain a wholesale quotation should bo at liberty to do so. Business is business, and sentiment alone will not keep a seller from accepting an order. The buying of hospital supplies is business, and thus comes witliin the clutches of this conscienceless machine ■which is incapable of dealing with sentiment." The "Journal"' justifies the idea that the State itself should net as middleman, and submits that, even in the unlikely contingency of the loss of a hospital contra<jt affecting local retailers, it -would to the same exent benefit the local ratepayers, who would consequently have more money to spend with the local storekeepers. Why, it is asked, should a crude method •of purchasing bo continued when by combin-ation--not only can.better prices be obtained, but also further advantages, such as a reduction in freights and other rebates, such charges being in inverse ratio to the size of the consignment ? It is not anticipated that the boards as a whole will do other than ■welcome the proposal. As a matter of fact, tho Wellington board in 1917 called a conference of other boards which passed a resolution in favour of the initiation by tho- department of a system of Combined purchasing, and the present action, delayed by various causes, is the result of that conference. ; Tho "Journal" says "there sre the [usual hints about moving the Government in the matter; but State business enterprise, such as coalmines, is apparently overlooked by those who tliink the Government would lend an ear to arguments advanced against a. simple business proposition." An undeniably strong argument is found by the department in the increase in the cost of carrying on hospitals. Tho department foresees a great outcry amongst the .'contributory local authorities after j March 31st, when the levies are made for the ensuing year. It considers it is extremely probable that the levies will be heavier than ever, as many will have to add heavy current overdrafts for maintenance expenditure" to their already heavy estimated re-

quirements