It has been found by the Auditor-General that district health boards can possibly make a lot of savings, but only given, they bring improvements in the method of purchasing goods and services.

Every year, DHBs invest almost $10 billion and if it does 1% saving on procurement, then possibly, $60 million could be saved each year, as told by the Auditor General.

Tony Ryall, Health Minister said the report depicted the performance of DHBs management of contracts and purchasing operations.

But, at the same time, he said that powers were working on procurement in the last two years.

If methods like supermarkets are used by DHBs, Mr. Ryall said that a lot of money could be saved.

The Auditor General said that with additional money available, it could be used for health and disability services.

"For example, an average 1 percent saving by all DHBs would mean about $60 million each year that could be used for additional health and disability services."

Mr. Ryall said that each and every DHB had their own good and bad points relating to the purchasing processes.