Improved management helps KZN Health save big

Savings of more than half-a-billion rand through improved management across various operational areas at the KwaZulu-Natal Department of Health (DoH) could signal that the department is turning a corner in financial management, the KwaZulu-Natal provincial Treasury said this week. The KZN Department of Health had saved about R587 million by the end of the third quarter of the 2025/26 financial year, Treasury said. Treasury spokesperson Nkosikhona Duma said the figures, while preliminary and subject to verification and auditing processes, illustrate what the provincial financial recovery plan can achieve.

Duma said a dedicated workstream had been established at the health department to help achieve the objectives of the recovery plan. “With the assistance of the provincial Treasury, the department has developed a financial recovery plan that identifies key areas for potential savings, associated implementation timeframes and responsible officials,” Duma said. He added that provincial Treasury has been assisting critical departments, such as the DoH, to improve their financial management.

Provincial Treasury utilises a monthly in-year monitoring (IYM) system to track departmental expenditure, assess spending trends and identify emerging budgetary pressures. “This enables Treasury to engage with departments proactively and provide support where financial risks are identified,” he said. Duma said that, according to information provided by the DoH, the bulk of the savings — about R354 million — resulted from improved management of pharmaceutical inventory. “These efficiencies were achieved through better stock management practices, including the optimisation of stock levels and improved utilisation of medicines across healthcare facilities,” he said.