Business Services Authority NHSBSA Business Plan

Transcription

1 Business Services Authority NHSBSA Business Plan 2016/17 NHSBSA Business Plan 2016/17 (V1)

2 Contents 1. About us 3 2. Introduction 6 Context 7 Our strategy /17 Business Plan 8 3. Deliverables and milestones 9 4. Our strategic goals Finance 21 Financial planning our approach 23 Operating expenditure 23 Transition requirements 23 Capital charges 24 External development funding 25 Capital funding Governance and performance monitoring Appendices 29 Appendix 1 - Operational KPIs 30 Appendix 2 - Risks and issues 37 Appendix 3 - Investment funding for capital projects 2016/17 40 Appendix 4 - NHSBSA Procurement Pipeline

3 1. About us 3

4 The NHS Business Services Authority (NHSBSA) is a Special Health Authority and an Arm s Length Body (ALB) of the Department of Health (DH). We provide a range of critical central services to NHS organisations, NHS contractors, patients and the public. The NHSBSA was created in 2006 by bringing together a number of previously separate NHS organisations. We still deliver the core range of services we started with and have taken on additional services as our stakeholders needs have evolved (see figure 1). Appendix 1 summarises our services and their key performance indicators (KPIs). Figure 1: Our journey 4

5 Figure 2: Our vision Our strategic goals have been developed to ensure we can continue to meet our purpose and address threats and opportunities identified in the longer term. Our purpose: We are a business services organisation. We use insight to deliver improvements that matter Our goals: 1 We will collaborate to create 1 billion for patients 2 We will reduce our unit costs by 50% 3 We will always improve service and deliver great results for customers 4 We will digitise 80% of customer and supplier interactions 5 We will derive insight from data to drive change 6 We will invest time in our people, and we will recognise them for their commitment, contribution and passion Our values: Ambition Integrity Innovation Respect Teamwork Quality Accountability 5

6 2. Introduction 6

7 Context We monitor UK and global trends on an ongoing basis to ensure our strategy and business plan address key threats and opportunities for our business (further details can be found in our Good Business - Corporate Responsibility strategy found at Our organisation continues to operate in an environment dominated by growing demand for our services, coupled with ongoing financial pressure. This is particularly relevant as the Government is continuing its austerity programme following the 2015 general election, setting a financial challenge for all central government departments and their ALBs, etc. The 2015 Government Spending Review has prompted us to revisit our financial planning and given us an objective to save 30% of our costs in real terms by 2018/19. The review also said that the Government will replace direct funding with loans for new students, the finer details of which aren t fully agreed yet. We re awaiting the outcome of the Government consultation on bursaries to determine how they will affect our Student Services operations. We re also continuing to align our strategy to the NHS Five Year Forward View, focusing on making significant transformational changes to achieve annual efficiencies. Along with this, as an ALB, we align our strategy and business plan to the DH priorities and shared delivery plan. Although we don t deliver health and care services directly, we believe that our purpose We are a business services organisation. We use insight to deliver improvements that matter supports the wider system to deliver its health and care priorities. Our key risks and issues (see appendix 2) also inform our approach to business planning. Moving into 2016/17, these are themed around: continued pressure on funding, increased demand for our services and delivering savings across the wider system security of our data and systems end of life IT hardware and software ensuring we have the organisational capability to deliver our evolving business needs. Our strategy Our updated strategy (found at gives details of the work we ve done so far towards each of our strategic goals. For instance, during 2015/16 we: successfully launched the 2015 Pension Scheme extended the NHS Supply Chain contract with an improved savings target of 300 million established our digital delivery team, which is working across the organisation to deliver our service visions 7

8 supported the further roll-out of the Electronic Prescription Service (EPS), use of which has increased to over 39% of prescriptions compared to just 3% two years ago extended our scanning capabilities and started scanning work for other organisations. Our strategy also describes how each goal has been developed to align with the broader health and care environment in which we work, and how we intend to use the data we collect to provide insight to support the wider NHS. 2016/17 Business Plan This business plan focuses on how we re going to deliver our key strategic goals (figure 2). Section 4 pulls together our key activities against the goal they support. We can t deliver these activities without sound financial management within our financial limits and section 5 details our financial plan for 2016/17. This was created to support both the continued delivery of our services for our customers and clients, and the delivery of our strategic goals. Our people are key to achieving our plans, so we also need to support them and ensure robust governance arrangements are in place. Section 6 gives a summary of our approach. 8

9 3. Deliverables and milestones 9

10 Our Change Roadmap gives an overall picture of what we plan to achieve in 2016/17 and beyond. It shows all of our business change activity across the portfolio. This includes a programme of digitisation and sourcing activity across multiple NHSBSA services, with the dual aim of digitising services and reducing our operating costs. It also includes a programme of technological improvements that will enable our retendering projects and the digitisation programme. Major milestones 2016/17 Our detailed Change Roadmap is available on request. In summary, our major milestones for 2016/17 are shown in Table 1 below. Table 1: Major milestones Key deliverable Outline business case for NHS Pensions reprocurement programme approved NHS Pensions reprocurement programme - facilities and estates service Target delivery date Apr 2016 Jul 2016 Digitisation maternity exemption certificates (Matex) Nov 2016 Digitisation Low Income Scheme (LIS) Nov 2016 Digitisation NHS Dental Services Dec 2016 Digitisation prescription digital submissions Dec 2016 Digitisation electronic receipt of payments Jan 2017 Digitisation complementary Intelligent Character Recognition (ICR) for prescription processing Mar 2017 Pacific programme recurring savings target of c. 500m Mar 2017 Digitisation Electronic Prescription Service (EPS) Mar 2017 Facilities and estates service (remaining sites) Mar 2017 Digitisation - prescription prepayment certificates (PPC) Mar 2017 Details of our external development and capital funding for projects can be found at appendix 3. 10

11 4. Our strategic goals 11

12 1 We will collaborate to create 1 billion for patients Building on our work throughout 2015/16, we ll continue to identify and deliver savings from the financial flows administered by the NHSBSA. We re also identifying savings in the wider health and care system as we continue to talk to and work with key external DH and NHS stakeholders. We ll deliver this goal mainly through our Pacific Programme, with input and involvement from colleagues across the organisation and particularly from Information Services and the Data Analytics Learning Laboratory (DALL). We ll also work with external DH and NHS stakeholders and have early discussions around existing proposals, as well as using those conversations as an opportunity to identify new initiatives. The programme s 25 projects will be delivered through 2016/17 and beyond and could potentially realise 1 billion of financial benefits. These will focus on reducing loss through fraud and error, making more effective use of our data, managing the performance of clinical contractors who work in partnership with NHS England and developing and implementing policies on expenditure management and charge recovery. We ll continue to align with and contribute to national change initiatives (e.g. NHS RightCare, the New Models of Care programme, and the Medicines Digitisation Strategy) as we support delivery of the Five Year Forward View. This includes both the way we deliver our routine services, as well as our proposals to enhance value throughout the health and care system. Examples of projects we ll deliver during 2016/17: Increasing the level of prescription and dental charge exemption checking, recovering overdue patient charges and deterring those who are not exempt from claiming incorrectly in future. Reviewing processes and procedures that support clinical provider contract management, working with NHS England colleagues and dental and pharmacy professionals. Supporting our DH colleagues to manage claims for the healthcare treatment of UK citizens abroad and explore opportunities to recover patient charges from overseas visitors who aren t entitled to free NHS care. 12

13 Helping NHS England colleagues to implement a strategic approach to Point of Care Testing and facilitating the roll-out of recommended tests across the NHS. Continuing to identify prescribing efficiencies and supporting the Medicines Optimisation approach to help reduce waste further. Supporting DH and Public Health England (PHE) to review how travel vaccines are delivered within the NHS, including a review of policy and processes. Reconfiguring NHSBSA service delivery to implement policy changes by DH and other ALBs. In 2015 we announced that the current NHS Supply Chain service contract had been extended with DHL by two years from 2016 until Revised terms for the contract started from 1 October 2015 and will operate for three years until 30 September They include a revised reward structure where DHL will be incentivised to deliver more value to NHS customers and cost savings to the tax payer. A cash-releasing savings target of 150 million has been agreed for delivery by October 2018 in addition to the 150 million target already achieved by March We ll work closely with NHS Supply Chain and their customers and suppliers to deliver these combined savings through various initiatives. 13

14 2 We will reduce our unit costs by 50% Through our digitisation and sourcing programme, we ll transform our services to become digital by default. Each of our services will maximise end to end efficiency and put user needs at the heart of the process. Where a transaction takes place this will primarily be through a digital interaction. Collaborative working solutions will enable colleagues to work remotely as virtual teams, and we expect our travel costs to reduce even further as all of our sites now have video conferencing facilities. We are considering options to improve the accuracy of our prescription processing system. This will increase the number of prescriptions processed automatically, without intervention or validation from operators. We re investigating ways to improve the way we recover outstanding debt. We ll create a single point of contact in one dedicated team that will liaise with a debt collection agent, making the process more efficient and increasing the debts we recover. NHS Pensions staff are now using the new Compendia system which was launched in 2015 which, along with new workflow management and improved system functionality, is increasing automated calculations and outputs. Introducing the new Pensions operating model, re-engineering business processes, increasing customer self-serve options and decommissioning legacy systems will help us to save over 1 million in 2016/17. The IT Infrastructure and Sourcing (ITIS) programme will ensure our IT needs are provided for when the current outsourced contracts expire. ITIS will transition us to a multi-sourced Information Communications and Technology (ICT) infrastructure, making service provision more effective and efficient ICT service provision. The new arrangements will also help us to deliver our digitisation and sourcing programme. To use our people s skills and talents more effectively and efficiently, we re proactively implementing agile ways of working with the aim to become a centre of excellence in this approach. We re also cross-skilling our staff so they can help to deliver a wider range of activities across our evolving service portfolio. We ll continue to reduce costs and increase sustainability through our Environmental Management System and Strategy. This includes addressing our significant environmental impacts and delivering the revised Greening Government Commitments and targets in areas such as carbon emissions, water use and waste reduction and recovery. 14

15 3 We will always improve service and deliver great results for customers We ll continue to invest in our technology and processes to meet the needs of our customers. As well as focusing on digitising our services, we ll also protect against end of life hardware and software issues that would affect service delivery. As part of our change process, we ve been undertaking discovery reviews for our services. This includes running focus groups and discussions with our customers, and wider research that takes our customer needs and views into account. The reviews will continue as part of our digitisation programme while the delivery teams continue work throughout 2016/17. We re continuing our extensive customer research and insight programmes and we re adding to our annual customer satisfaction surveys with new quarterly customer research. This explores current or planned changes in more depth. Our survey activity helps us to transform our services so they meet customer needs more closely, and the feedback we ve received so far has led to a number of service improvements. We re also committed to improving the quality and accessibility of our customer communications. Working with the DH Behavioural Insights Team we re working hard to improve our patient charge exemption checking communications to make the message more effective and increase customer satisfaction. As part of their Total Reward Statement (TRS), medical and dental practitioners will receive an online dynamisation sheet from 2016/17 which will provide a year by year breakdown of their pension value, so they no longer need to request this on paper. We ll grow our Prescription Exemption Checking Service in 2016/17, with the aim of doubling the volume of claims checked and penalty notices issued. This will have a major influence on the fight against fraud and error as well as releasing funds back into the NHS. Dental benefits eligibility checking will increase to 100% coverage, building on our success in recovering patient charge revenue for the NHS. Collaborating with DH colleagues, we re supporting the delivery of the Community Pharmacy Review (CPR) Project, which aims to rationalise payments to pharmacies and make it easier to commission clinical services from their dispensaries. To improve public oral health, we re also working with DH colleagues to pilot a new national dental contract in England. This will help the DH to make decisions about individual NHS dental contracts. 15

16 Our scanning project has given us more scanning infrastructure that complements our existing prescription scanners, which already scan around 400 million prescription forms every year. Our new scanning capability means we can offer a low cost, centralised scanning service to the wider NHS improving customer service, reducing costs of outsourcing to a private sector provider and bringing in revenue to the NHSBSA. Increasing automation and standardisation in NHS Pensions administration processes will improve accuracy of calculations, reduce customer waiting times, reduce operating costs and gather meaningful insight. The extended NHS Supply Chain contract, as well as delivering the cash-releasing target highlighted under goal 1, aims to deliver further service improvements for customers. These include providing greater transparency, giving customers more flexibility and choice, and maximising benefits to the NHS as part of the terms of the contract extension. 16

17 4. We will digitise 80% of customer and supplier interactions All public sector services, including the NHSBSA, need to be digital by default. We will therefore develop and redevelop our services so digital becomes our customers preferred way of interacting with us, whilst ensuring accessibility for those who need to use other channels. Our digitisation and sourcing programme has now started and will transform our services to become digital by default. To achieve this we re transforming both the internal organisational capability from a people, technology and process perspective to move towards a digital and agile focused organisation, while in parallel also transforming our business services around the needs of our users. To support the digitisation programme we re upgrading our web platform, aligning our technology to gov.uk and initiating major improvements to our website. The changes are based on substantial customer and user feedback collected from the discovery phase of this project and will enhance the customer s experience from their first point of digital contact with our organisation. To help us deliver services which meet digital by default standards we ve created Digital Delivery Hubs in two of our offices. These provide an environment for colleagues from cross-functional digital delivery teams to work together, following agile practices where they can create services which are built around user needs. The services we re beginning to digitise are: Maternity exemption We completed discovery activities and prototyping for the maternity exemption process in 2015/16. We re now looking to provide users with access to the service through a digital channel, reducing paper application processes, speeding up applications and improving customer service. NHS Low Income Scheme We ll provide an electronic portal for customers to access and apply for help with their health costs through the NHS Low Income Scheme. This will speed up the process and reduce the need for users to complete a lengthy paper application form. NHS Prescription Services We re taking a more active role in encouraging GPs and pharmacies to use the Electronic Prescription Service (EPS). We ll actively engage these stakeholders and members of the general public to identify why the system isn t being used fully and actively support them to overcome any barriers. We ll also develop digital alternatives to current paper-based processes, such as moving referred back and disallowed prescription resubmissions to an online process. NHS Pensions We ll initiate a project to make NHS Pensions member services digital by default, starting in early 2016/17. We ll design the new service around user needs to transform the way members interact with us and improve how we deal with their requests. 17

18 5 We will derive insight from data to drive change We ll continue to build on work carried out during 2015/16 to put information at the heart of our organisation. Digitising our services will give us access to even more information and a richer data set, which will help us to identify opportunities across the wider health sector. Data analytics will continue to provide insight that helps to identify wider savings, reduce fraud and error, improve our services and explain how they re being used. We ll continue to build on the progress we ve made in improving our data governance and we ll find more opportunities to effectively share our data and information to support the wider NHS. We ll continue to improve our externally facing information services so that the NHS has access to the information it needs to make effective decisions and ensure patients are receiving safe, high quality care. We ll monitor trends in our contact centre to identify the strengths and weaknesses of our information and communications. Similarly, we ll collate management information and use the data to streamline processes and prioritise change. We ll continue to carry out customer satisfaction surveys across all of our service streams and corporate work areas and we ll continue to support our digitisation projects by conducting user research. This ensures that our services will be shaped around our customers needs and that new processes and digital solutions will be developed using meaningful insight from our users and key stakeholders. 18

19 6 We will invest time in our people, and we will recognise them for their commitment, contribution and passion As we work towards our strategic goals, the environment we work in and the ways in which we work are changing, which will impact on our people. We ve identified four key factors to ensure change is delivered in a people-centric way: Clear vision and strategy One voice leadership Commitment to change Portfolio management Our Learning and Organisational Development (L&OD) team will work to ensure that these four aspects are addressed in all organisational changes, producing detailed plans to underpin portfolio / digitisation programmes in support of delivering service visions. We will prepare our people for a changing environment and ensure that they continue to deliver through a robust Core Capabilities Framework. This will support honest conversations about performance and development and will be closely mapped to our strategic goals, as well as informing our maximising potential approach to performance and talent management. A new tool will help managers to rate performance fairly and consistently, using both objectives and core capability indicators to achieve a more rounded, robust understanding of how our people are performing and to identify the people we need for our future. We ll continue to embed our L&OD Strategy for Change to ensure we have the right capacity and capability to deliver our strategic goals. Each business change programme will add to the way our future capabilities are defined, effectively developed and sourced. As the way we work changes it s likely there ll be an increased need for particular skills and capabilities. The strategy will also ensure that change programmes led by the Heads of Service / Function within their own business areas improve whole organisational effectiveness. We ll engage all of our people by ensuring they know their voices are heard. They ll recognise the value of their work and contribution they make towards achieving our strategic goals through the Ongoing Review and Objectives (ORO) appraisal process. Our most recent survey results (December 2015) show that NHSBSA employee engagement level is at 80%. We ll continue to run employee surveys to understand how engaged our people are and act on the results to improve. 19

20 We ll invest in and enhance our Learning Management System, which increases access to digital learning for our people. Based on requirements scoped from our ORO appraisal process in 2014/2015, we ll build a core learning curriculum by providing a series of interactive and engaging e-learning modules. These can be developed and built into an integrated, scalable learning solution for the organisation over time. We ll also transform the way HR services are delivered both within our organisation and for our clients, to increase efficiency while providing a great customer experience. We ll increase self-service capability for employees and managers, providing easier access to information and direct access to systems. We ll implement a supporting platform to manage the way in which the service is accessed, building a better understanding of service demand to help us be more proactive. 20

21 5. Finance 21

22 The scale of the financial challenge facing the NHS was set out in the HM Treasury Spending Review (SR) The Government directed the DH to model two scenarios of reductions of 25% and 40% by 2019/20 covering all areas of the DH Revenue Departmental Expenditure Limit (DEL) outside the NHS England mandate. This included all ALBs and central DH expenditure for both programme and administration costs. For the NHSBSA, this translated into an indicative savings target of between 32 million and 48 million in real terms by 2019/20. Our initial proposals were submitted to the DH in August 2015 and included savings opportunities totalling circa 48 million over the SR period. These were underpinned by some key assumptions: recognising that our digitisation and sourcing plans will be the key driver in reducing our real terms unit costs by 50%, and that savings from this programme of activity will come on stream in years 3 and 4 of the SR period that HM Treasury would agree a transfer of the costs associated with the administration of NHS Pensions from the NHSBSA revenue budget to the NHS Pensions Scheme (circa 25 million) that use of the Electronic Prescription Service will increase in line with projections made by the Health and Social Care Information Centre (HSCIC), which will enable us to reduce the operating cost of NHS Prescription Services. After allowing for volume growth in services, the cost of pay and National insurance (NI) increases, inflation, and unavoidable cost pressures, our proposals would lead to a cash reduction of circa 36 million (35%) in our funding by 2019/20 before taking into account new baseline services. The NHSBSA SR 2015 revenue submission is summarised in Table 2 below: Table 2: NHSBSA revenue funding requirements to 2019/ /17 m 2017/18 m 2018/19 m 2019/20 m Revenue DEL before new services Add: New baseline services Tax Credit Exemption Certificates Pensions recurring expenditure Revenue DEL (after savings) The Chancellor s Spending Review and Autumn Statement on 25 November 2015 confirmed the financial settlement for the NHS to 2019/20, and this was followed in early December by the release of our provisional revenue funding position for the next 4 years. In essence, the DH accepted the proposals put forward on the final phasing of savings, however the allocations need to be agreed. 22

23 Financial planning our approach Delivering our services within the financial limits provided to us is of paramount importance. As value for money is central to all of our activities, we ve focused our financial and business planning process on how we can deliver more for less. We ve worked hard to improve value for money in our services by making the best possible use of our limited resources. Our Leadership Team led the development of our Financial Plan for 2016/17 to 2019/20. Building on the content of our SR 2015 submission, each Director carried out a baseline review of the services in their portfolio to identify: efficiencies by adopting the principle of digital by default opportunities to stop non-essential spending and non-value adding activity opportunities to increase income streams by charging for services options for reducing staffing costs through innovative and agile ways of working. The outcome of this activity is a robust cost reduction plan for the business that is aligned with the delivery of our strategic objectives. Operating expenditure 2016/17 We re planning to deliver net efficiency savings of circa 8.4 million in 2016/17. After adjusting for new baseline services and allowing for the cost of volume growth, unavoidable cost pressures, and pay and inflation increases, we ll deliver a cash reduction in our revenue net operating expenditure of 3.2 million (3.2%) compared to 2015/16. Our projected baseline net operating expenditure for 2016/17 is million. Transition requirements The key financial risk facing the organisation is the requirement to deliver savings of circa 48 million in real terms by 2019/20. We estimate that this will require non-recurring transition funding of up to 20 million over the period. In 2016/17, the funding requirement is estimated at 4 million. 23

24 Capital charges The NHSBSA receives funding to meet our capital charges cost. These capital charges are a way of recognising the cost of ownership and use of capital assets. We estimate that we will require 16 million in 2016/17 for such charges. Table 3 below sets out our Revenue Departmental Expenditure Limit (DEL) funding requirements for 2016/17. Table 3: NHSBSA Revenue DEL funding requirement 2016/17 m Total gross revenue operating expenditure before new services (note 1) Total revenue income Total net operating expenditure before new services Add: new baseline services Tax Credit Exemption Certificates 0.80 Pensions recurring expenditure 1.14 Total net operating expenditure - non ring-fenced Revenue DEL (A) Non-recurring/transition costs - non ring-fenced Revenue DEL (B) 4.00 Capital charges - ring-fenced Revenue DEL (C) Total Revenue DEL requirement (A+B+C) Note 1: The Revenue DEL figure includes NHS Protect and does not take into account any potential top-slice of resources for communications campaigns. NB: NHS Supply Chain Future Operating Model additional non-recurring finance will be required - will need to be discussed with DH. 24

25 External development funding The cost of providing our existing service portfolio is funded through our operating expenditure budget. However, when our clients ask us to deliver new services or major changes to our existing services, we require additional development funding. At this stage our external development funding requirement for 2016/17 is 16.9 million. This includes 8.6 million of non-recurring investment in the reprocurement of our NHS Pensions administration services and the IT Infrastructure and Sourcing (ITIS) programme. Table 4 below summarises our non-recurring revenue funding requirement in 2016/17 for external development projects. Table 4: Non-recurring revenue investment requirement 2016/17 m NHS Dental Services Dental contract pilots 1.66 NHS Help with Health Costs Digitisation and sourcing 0.81 NHS Pensions Guaranteed Minimum Pension (GMP) exercise 4.14 Pensions reprocurement (note 2) Pension Scheme 0.26 Pensions Annual Allowance 0.10 Previous public sector membership 0.04 NHS Prescription Services Digitisation and sourcing 0.25 Alignment of prescription charge handling with payments to pharmacies 1.00 Corporate IT Infrastructure and Sourcing (ITIS) 4.59 Digitisation and sourcing 0.17 Total non-recurring revenue investment requirement Note 2: Current estimated revenue requirement for NHS Pensions reprocurement. This represents a reduction of 1 million compared to the draft outline business case (OBC) submitted to DH in early January

26 Capital funding The NHSBSA has identified a potential capital funding requirement for 2016/17 of circa 25.2 million. The final figure will depend on the outcome of discussions with clients on their requirements and whether the business cases for NHS Pensions reprocurement and ITIS are approved. Table 5 below summarises our projected capital funding requirements for 2016/17. Full detail for individual projects is included in Appendix 3. Table 5: Capital investment requirement 2016/17 m Capital funding linked to non-recurring revenue investment Digitisation and sourcing 1.79 NHS Pensions reprocurement 6.70 IT Infrastructure and Sourcing (ITIS) 2.74 Capital programme Maintain service delivery 3.76 Improvements to meet strategic goals 2.45 Client requirements and direction 3.40 Legislation 1.00 NHS Protect 3.42 Total capital investment requirement

27 6. Governance and performance monitoring 27

28 Our Corporate Governance Framework sets out how we ensure we make the right decisions in the right way and that those decisions are implemented correctly. You can find the Framework here: We use specific service and programme reports to monitor our performance against our stated deliverables: Operational KPIs (Appendix 1) Deliverables and milestones (Section 3) Finance (Section 5) These reports are reviewed by our Leadership Team and Board throughout the year. Performance is also reviewed with the DH at regular Accountability Review Meetings. We publish our Annual Report and Accounts at the end of each financial year: It includes details of our performance, any risks and issues, and our Financial Statements. 28

29 7. Appendices 29

30 Appendix 1 Operational KPIs 30

31 Contact Centre KPI type KPI name Target Service Delivery Average speed of answer 120 seconds NHS Dental Services KPI type KPI name Target % activity reports on first available schedule 99.90% % Clinical Advisor cases completed within 2 months 50.00% % Clinical Advisor cases completed within 3 months 90.00% Service delivery % of Area Teams on target to have a minimum of 2,000 questionnaires sent to patients in England by the end of 2016/17 % of Health Boards on target to have a minimum of 2,000 questionnaires sent to patients in Wales by the end of 2016/17 Carry out no fewer than 20 routine orthodontic performance assessments by end March % % % Carry out no fewer than 330 routine assessments by end March % Carry out no fewer than 83 CA reports by end March % Non-confirmed eligibility checks (England) 130,000 Non-confirmed eligibility checks (Wales) 12,000 Payment transfers in accordance with prescribed dates (all) % Reporting in accordance with publication timetable % Quality of service Accuracy of data capture 99.90% Accuracy of payment - sample based on Pensions Online (POL) data 99.90% Accuracy of published dental reports % Average speed of answer 120 seconds Customer care Clear s within 2 working days of receipt 98.00% Issue final response to customer complaints within 10 working days % Issue initial response to customer complaints within 3 working days % European Health Insurance Card (EHIC) KPI type KPI name Target Service delivery Quality of service Customer care % EHIC applications processed and distributed within target 99.00% % accuracy of processed applications 98.00% Average speed of answer 120 seconds Clear s within 2 working days of receipt 98.00% 31

32 Information Services KPI type KPI name Target % Drug Tariff electronic and paper published within agreed target / schedule % Customer information reports and systems published within target % Information systems (epact) available to external stakeholders 99.50% Information systems (ISP) available to external stakeholders 99.50% Service delivery MI reports published within target deadlines % MPI Freedom of Information requests (FOIs) provided within 20 working days of receipt MPI Subject Access Requests (SARs) provided within 40 calendar days of receipt % % Parliamentary Questions (PQs) answered within deadline % Prescription FOIs provided within 20 working days of receipt % Reporting in accordance with publication timetable % Quality of service % accuracy of drug tariff team workload 99.90% % accuracy of published dental reports % Prescription processing information accuracy 99.00% Low Income Scheme (LIS) KPI type KPI name Target % claims processed within 18 days 99.25% Service delivery % good cause cases processed within target 99.25% % review cases processed within target 99.25% % refunds processed within 5 days 99.25% Quality of service Customer care % accuracy of processed applications 97.00% % accuracy of refunds 97.00% Average speed of answer 120 seconds Clear s within 2 working days of receipt 98.00% 32

33 Prescription prepayment certificates (PPCs) and Maternity, Medical and Tax Credit Exemption certificates KPI type KPI name Target Service delivery Quality of service Customer care PPC service delivery 99.25% PPC quality of service 98.00% Average speed of answer 120 seconds Clear s within 2 working days of receipt 98.00% Prescription Exemption Checking Service (PECS) KPI type KPI name Target Service delivery Quality of service Customer care PCN letters sent against plan % % surcharge letters sent against system generated surcharge % % making payments 7.50% % accuracy of PECS patient data capture 97.50% Average speed of answer 120 seconds % s answered within 2 days 98.00% % letters cleared within 5 days % 33

34 NHS Pensions KPI type KPI name Target 5-year rejoiner Cash Equivalent Transfer Value (CETV) - within 3 calendar months 99.00% Awards % by one calendar month following due date 99.50% Child allowance % by one calendar month following due date 98.50% Death gratuity - 99% by one calendar month following due date 99.00% GP practice employers and Direction Bodies (Direction Body, independent provider and New Fair Deal) (reported one month in arrears) Main employers, Clinical Commissioning Groups (CCGs) and Clinical Support Groups (CSGs), GP and Dental Staff (reported one month in arrears) 95.00% 98.00% Officer estimate - 95% within 40 working days 95.00% Payments to pensioners (Paymaster contract) % Service delivery Pensions contributions - CCGs and CSGs - by 19th (reported one month in arrears) Pensions contributions - Directions - by 19th (reported one month in arrears) Pensions contributions - GP and dental staff - by 19th (reported one month in arrears) Pensions contributions - GP practices - by 19th (reported one month in arrears) 98.00% 95.00% 95.00% 95.00% Pensions contributions - Independent providers - by 19th 95.00% Pensions contributions - Main employers - by 19th (reported one month in arrears) 98.00% Pensions contributions - New Fair Deal - by 19th 95.00% Pensions on divorce CETV - 95% within 3 calendar months 95.00% Performance of EP - BACS automatic notifications paid within 7 working days Performance of EP - payment issued for printing in voucher cases in 3 working days % % Practitioner estimate % within 40 working days 97.50% Refunds % by one calendar month following date of receiving application 99.95% Sub Awards - 98% by one calendar month following due date 98.00% Transfer Value In - estimate 98% within 2 calendar months 98.00% Transfer Value Out - estimate 95% within 3 calendar months 95.00% Transfer Value Out - payment 99.7% within 6 calendar months 99.70% Widowers pension - 97% by one calendar month following due date 97.00% Quality of service Pensions accuracy (case administration and payments) - pre-release errors 98.50% Performance of EP - all pensions calculations - accuracy 99.90% 34

35 NHS Prescription Services KPI type KPI name Target Service delivery Quality of service Batch retrieval requests within agreed target 85.00% Health benefit requests completed to target 99.00% Prescription search requests completed within agreed target 90.00% Successful payments and file transfers % Absolute cash variance 99.30% Accuracy of payments 99.10% Net cash variance 99.8% % NHS Student Bursaries (SB) KPI type KPI name Target % initial payments to new students within target % % authorised extensions paid within target % Provide quarterly updates to bursary forecasts % Service delivery Provide monthly database and principal reports % Provide reports at intervals during the year in accordance with frameworks and agreed timescales % % subsequent payments to continuing students within target % To ensure delivery against the monthly capacity clearance plan is no greater than a 5% deficit -5.00% % disabled student allowance applications processed within target % % practice placement expenses paid within target % Quality of service Customer care Financial % tuition invoices paid within target % % bursary amendments following withdrawal/suspension processed within target % % payments to resumers within target % % accounts updated within target following change of circumstance % % absolute cash variance (post-payment financial accuracy) 99.00% Average speed of answer 120 seconds % informal complaints resolved within 10 working days % % formal complaints (stage 1) resolved within 25 working days % % formal complaints (stage 2) resolved within 15 working days % To ensure overpayment financial values, as a result of withdrawals, does not exceed 1% of the bursary expenditure 1.00% 35

36 SWB Education Support Grants (ESG) KPI type KPI name Target Service delivery Quality of service Customer care % payments made to new students within target % % net cash variance payment to Higher Education Institutes (HEIs) 99.0% % % informal complaints resolved within 10 working days % % formal complaints (stage 1) resolved within 25 working days % % formal complaints (stage 2) resolved within 15 working days % Social Work Bursaries (SWB) KPI type KPI name Target % bursary amendments following withdrawal/suspension processed within target % % disabled student allowance applications processed within target % Service delivery % invoices processed within 20 working days % % payments made to HEIs within target % % subsequent payments made to students within target % To deliver within a 5% tolerance of the monthly capacity and capability plans -5.00% Quality of service % accuracy of processed applications 97.50% % net cash variance of processed applications 99.0% % % abandoned calls 3.00% % enquiries responded to within 10 working days % % formal complaints (stage 1) resolved within 25 working days % Customer care % formal complaints (stage 2) resolved within 15 working days % % Higher Education Institute (HEI) correspondence responded to within 5 working days % % informal complaints resolved within 10 working days % Average speed of answer 120 seconds Budget % money owed due to change of circumstances 1.00% Provide scheduled reports within target % 36

37 Appendix 2 Risks and issues (Correct as at March 2016) 37

38 The tables below give a collated, high-level description of the key risks and issues faced by the NHSBSA Risks Risk short name Risk description Risk owner Mitigations Funding The ongoing financial pressures faced by government organisations may impact on the NHSBSA s ability to deliver services and a range of critical change projects. Patrick McGahon Director of Finance and Corporate Services Financial negotiations with DH Engagement with key stakeholders Enhanced resource planning at project portfolio level NHS Supply Chain Savings Target A range of factors, including consideration of a future operating model, may impact on the delivery of the 300 million savings target. Steven Pink Director of Change and Commercial Delivery Engagement with DH and other stakeholders Ongoing contract management activity and target monitoring Information and Cyber Security The volumes and sensitivity of data we hold means the Leadership Team and Board have purposefully continued to closely monitor the organisation s approach to information and cyber security. Mark Dibble Corporate Secretary Deliver against Information Governance Toolkit Implement cyber security improvements in line with digitisation agenda Organisational Capability The ongoing evolution of our business needs, aligned to the fast moving environment, means we may not have the skills and knowledge required to deliver our strategic goals. We may not be able to retain key staff, or attract new talent. Steven Pink Director of Change and Commercial Delivery Succession management project Organisational analysis Talent management framework launch Internal audit of organisational effectiveness and capabilities IT End of Life As existing NHSBSA software and hardware is becoming unsupported and contracts and licences are expiring, a risk has arisen around applications becoming unusable or difficult to fix in the event of a failure. This may result in service delivery failures. Patrick McGahon Director of Finance and Corporate Services Rolling modernisation programme Status monitoring of IT end of life systems 38

39 Issues Issue short name Issue description Issue owner Mitigations IT Infrastructure and Sourcing Programme The ongoing financial pressures faced by the NHSBSA have led to uncertainty over the funding for this programme, resulting in an impact on progress. Patrick McGahon Director of Finance and Corporate Services Engagement with DH on funding 39

40 Appendix 3 Investment funding for capital projects 2016/17 40

41 Maintain service delivery Contact Centre Capital m Additional required external development funding m Procurement of Contact Centre Telephony Contract IT Desktop refresh IT Infrastructure and Sourcing (ITIS) Replace End of Life prescription processing applications Various IT amendments Laindon Disaster Recovery site relocation - - Disaster Recovery test - - System remediation (legacy systems) Mainframe decommissioning Drug Master Data replacement Organisational Master Data replacement Penetration / security testing to safeguard our systems NHS Pensions Pensions reprocurement Property and Facilities Procurement of Facilities Management - - Bridge House Data Centre Migration Student Services BOSS Components End of Life Totals

42 Improvements to achieve strategic goals Communications and Customer Insight Capital m Additional required external development funding m Website hosting and content Finance Corporate Debt Recovery Solution NHS Help with Health Costs Digitise Low Income Scheme application Digitise maternity exemption certificate application Digitise medical exemption certificate application Digitise prescription prepayment certificate application HR Workflow Management System Information Services Information Services digitisation Part Drug Tariff - - IT Internal staff collaboration tools Upgrade inbound / outbound internet connection Cloud development and test environment NHSmail replacement (NHSmail2) NHS Prescription Services Citizen Access Solution Electronic Prescription Service - - Digital resubmission of prescriptions Digitise return letters to contractors Digitise Medicines and Organisational Data Services Complementary Intelligent Character Recognition (ICR) solution Totals

43 Client requirement and direction NHS Dental Services Capital m Additional required external development funding m Dental contract reform programme NHS Help with Health Costs EHIC online application enhancements Information Services Prescriber ID code format changes Amend the British National Formulary (BNF) code structure Dental prescriptions data Dictionary of Medicines and Devices (dm+d) browser replacement Public Health England (PHE) partnerships (Dental and Prescription data warehouses) NHS Prescription Services Community Pharmacy Review (CPR) project Align prescription charge handling with payments to pharmacies Reform drug reimbursement discount deduction scale Prescription charge changes NHS Pensions Changes to redundancy payments Previous public sector membership Annual Allowance 2015 budget Student Services Tax free childcare checking Totals

44 Legislation NHS Pensions Capital m Additional required external development funding m 2015 Pension Scheme implementation programme Contracting out single tier pensions Property and Facilities Fleetwood floors remediation programme Benton warehouse works Bridge House - basement remediation Minor works programme Totals NHS Protect Capital m Additional required external development funding m SAS Visual Analytics tool IT replacement equipment IT reprocurement programme Bespoke system development IT service improvement / digitisation Forensic Computing Service license renewals GB Data license renewal SAS data mining tool reprocurement Totals Grand total:

45 Appendix 4 NHSBSA Procurement Pipeline 2016/17 45

46 The list below details the NHSBSA procurement pipeline, including all procurement activity that will commence or be completed in 2016/17. This excludes any procurement that falls below the Official Journal of the European Union (OJEU) thresholds. The contract periods quoted are a standard four years, although the actual contract durations may vary dependent upon the final procurement strategy. This information is correct as at March Title of procurement / name of contract Procure 22 (for major and minor construction related works)* Anticipated contract term Contract value over period of contract ( m) 4 years 16.8 Lone Worker Security Service 4 years 16.5 Pensioner payroll 7 years 15.0 Facilities management hard and soft FM* 4 years 14.2 Contingent labour - professional interims* 4 years 6.9 Pensions medical services 7 years 7.7 Contingent labour - admin / clerical staff* 4 years 2.6 Office supplies / stationery* 4 years 0.6 Learning and development* 4 years 0.6 Vehicle insurance* 4 years 0.9 Debt recovery solution* 4 years 1.0 IT managed infrastructure and end user devices 6 years To be confirmed IT - network services 6 years To be confirmed * To be procured through a Crown Commercial Services or any other approved framework. 46