A committee is being set up by the South Australian Government to help overhaul the health sector.

It is to include the chief executive of the Department of Premier and Cabinet, Jim Hallion, under treasurer Brett Rowse and Health Department CEO David Swan.

SA Health Minister Jack Snelling said SA Health wanted to achieve $949 million of savings over the next four years.

He told Parliament the committee would operate for at least a year.

"In recent years the activity in the health system has grown by about 2 per cent every year but the amount that we spend has grown by around 8 per cent and this isn't sustainable," he said.