Uncertainty surrounds southern Air Ambulance contracts

Regional Air Ambulance service providers are still waiting to find out what the introduction of new contracts will look like, with the Government this year moving to a new system.

Health NZ and ACC are say they are working with the sector to redesign the aeromedical operating model to make the best use of air ambulance resources. 

That includes moving to longer term contract arrangements with providers.

Responding to questions from Crux today about what the new contracts would mean for existing providers, and if the new system could see a national provider replace existing regional providers, Health New Zealand and ACC issued a joint statement.

“Health New Zealand and ACC intend to publicly publish a Registration of Interest (ROI) on the New Zealand Government Electronic Service portal as the first step to contract for future Emergency Air Ambulance Helicopter Services throughout New Zealand,” the statement said.

“Suitably qualified organisations will be able to register their interest.

“The ROI will stipulate what qualifications respondents must have to successfully register their interest, allowing them to move to the next stage of the procurement process.

“While the structure will ultimately be determined by the responses to the ROI, we are not planning to expressly seek a single national provider." 

South Island air ambulance services have been carried out by Helicopter Emergency Medical Services (HEMS), which subcontracts its operational responsibilities to three operators: GCH Aviation, Helicopters Otago, and Southern Lakes Helicopters. 

HEMS and other providers are still waiting to be provided with any details around the new contracts.

“Once the terms of the new contract requirements are published, we will no doubt be constrained by matters of both probity and commercial sensitivity,” HEMS chief executive Ken Franklin said.

“HEMS NZ has been the provider of helicopter air ambulance services across the whole of the South Island since November 1, 2018 and so, clearly, it has an interest in the future form and nature of this service.”

In the last three years, air ambulance use has increased by 21 percent, with the total fleet flying 13,026 hours in the year to October 2023, an average of more than 35 hours every day.

New Zealand’s emergency air ambulance helicopter services are currently provided by Northern Rescue Helicopter Limited (for Auckland and Northland), Central Air Ambulance Rescue Limited (for the Central North Island) and Helicopter Emergency Medical Services (for the South Island). Service providers own or lease the helicopters.

Main image (File Photo): Air Ambulance contracts are changing but details are still to be released.