Private provider Fertility Associates has been named preferred provider for the Otago Fertility Service in a joint South Island service.
The Southern District Health Board last year announced it was outsourcing the service, as it was too small to stay in-house.
Other boards have almost entirely outsourced their fertility services to the private sector.
Health board patient services medical director Dick Bunton said the South Island-wide service ensured patients could access a locally-based public service in the South.
''The current service is unsustainable in its current form, as it is the smallest in the country. Other South Island DHBs already outsource fertility services to a single provider and we will now be part of a new South Island-wide contract.
''The new service will continue to be provided from Dunedin and the successful provider is required to maintain a relationship and training opportunities with the University of Otago and [the medical school],'' he said.
A process would be worked through to ensure the transition to the new provider was as smooth as possible.
