Sykehusinnkjøp HF Norwegian Hospital Procurement Trust

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1 Sykehusinnkjøp HF Norwegian Hospital Procurement Trust National Healthcare Procurement Seminar October 8 th 2018 in Helsinki Cathrine M. Fuhre Division Director, South-East region

2 VISION Good purchasing practices, Better healtcare!

3 OBJECTIVS We shall contribute to increased value creation for the specialist healthcare service through national procurements and administration of national agreements.

4 Sykehusinnkjøp Founded December 2015 CEO Kjetil M. Istad Head office Vadsø Strategic and operative responsibility for purchasing in the specialist healthcare service Owned by the four regional health authorities Acquisitions on employees from national/regional/local authorities in 2016/2017

5 Articles of Association Sykehusinnkjøp HF shall actively participate in international networks and strive to participate in international alliances to promote increased coordination of purchasing at international level. The purchasing service shall be professional, specialised and available to the customers. The health authority shall ensure that the procurements are made in a proper and socially responsible manner. The health authority shall be a driver of ethical trading and environmentally friendly purchasing. «We must promote innovation and facilitate the use of new innovative solutions in the specialist healthcare service.

6 Innovation partnership A stroke for future health services Goal: Strengthen the interaction between new technology and organizational innovation in the treatment of patients suffering from stroke Innovation of Norway is funding the innovation partnership project with 1 million Euro C3 Sunnaas sykehus Oslo kommune

7 Innovation partnership A stroke for future health services Centre for Connected Care, Oslo University Hospital - Sunnaas Hospital and Oslo municipality Strengthen the interaction between new technology and organizational innovation in treatment of stroke patients

8 committed partners from hospitals, municipalities, research institutions and the health care industry Core activities include the development and testing of new solutions in collaboration with industry. Vision: C3 will be the catalyst for the positive change in future health care. Objective: To accelerate adoption and diffusion of patient-centric innovations that change patient pathways and delivery systems, empower the users and increases growth in the health care industry. Innovation of Norway founding their innovation partnership project with 1 million Euro C3 Sunnaas sykehus Oslo kommune

9 Currentsituation ofpatientssuffering from stroke Lack of rehabilitation is a big bottleneck in stroke treatment New and holistic interaction models and integrated services needs to be developed National treatment guidelines are difficult to meet There is a great variation in how to follow-up the stroke patients The proportion receiving early rehabilitation in hospitals varies at regional level from 17% to 46% With waiting for specialized rehabilitation, reference is made to easier rehabilitation in the municipalities. C3 Sunnaas sykehus Oslo kommune

10 Innovation partnership A stroke for future health services The future health service is seamless, personal and digital Today's technology enables each and every one of us to take care of our own health, whether it concerns prevention, treatment or rehabilitation in severe chronic conditions Norway needs to use new technology to develop interaction models and integrated services based on patient needs Smarter healthcare requires cultural change Organizational innovation challenges both leadership and interaction C3 Sunnaas sykehus Oslo kommune

11 Innovation partnership A stroke for future health services Centre of connected care has the desire and willingness to challenge this interaction - with patients suffering from stroke as a starting point In Norway, 12,000 people suffer from stroke annually, with an annual cost to society of 7-8 billion NOK The main objective of the project is: 1. Improve the patient's functional level 2. Develop a service concept that can save 1 hospital bed per patient per year compared to today 3. A secondary goal is that this solution also has a potential within treating chronic challenges with the same complexity C3 Sunnaas sykehus Oslo kommune

12 The procurement process: What is innovation partnership? Innovation partnership is a new form of public procurement that was introduced on January 1, The procedure is used in procuring solutions that are not yet available in the market. The scheme will make it easier for public and industry to collaborate on developing new technology and new solutions where companies compete to make the best solutions. Innovation partnerships facilitate product and service development in a collaborative process between the buyer (here Oslo municipality and Sunnaas Hospital) and developer/supplier. There is an intention to acquire the solution. It is possible for other municipalities and hospitals to join the process as so-called follow-up municipalities/hospitals before the tender announcement. The purpose of the innovation partnership is to provide brand new products or services to address a specific need. More information is available at:

13 Innovative partnerships - model (PPI) Mapping of needs, user involvement and project organization. Defining the business case and criteria s of success. Dialogue Competition Offer Offer Offer Negociations Establishing of partnerships Innovative partnership Innovative partnership One contract Buy the solution Innoba

14 The phases of innovation partnership Public procurement of innovative solutions - PPI Need Marked dialgue Competition Develop ment of new solutions Purchase C3 Sunnaas sykehus Oslo kommune

15 Innovation partnership: Development and purchase in one and the same contract vikling og kjøp i en og samme kontrakt Competition to deliver Need for innovativ solution Research and developm ent Purchase of developed product / service One contract C3 Sunnaas sykehus Oslo kommune

16 Innovasjonspartnerskap Development of solution Competition Targets/Secondary objectives Targets/Secondary objectives Targets/Secondary objectives Purchase Innovation Partnerships A Innovation partnership ends Innovation Partnerships B Innovation partnership ends Innovation Partnerships with supplier C Purchase Option / Purchase Conceptualization Prototyping Testing New product / service put into use in the business C3 Sunnaas sykehus Oslo kommune

17 Why this PPI procedure in the STROKE project? Unsolved problem Many are affected Project of common interest Can be solved by publicprivate partnership The solution does not exist in the market

18 Innovation partnership A stroke for future health services Approache of the project Identifying the patient groups suffering from stroke where the gain of new approaches will be greatest in terms of improved functional level. Identify conceptual solutions and estimate benefit realization. Service design approach and carry out a thorough insight phase In order to uncover the needs and opportunities for new solutions, the project must survey the service requirements through both the specialist health care services and the municipality health care services The analysis must include the phase before the stroke to ensure that the needs for preventive services is also taken into the project Discover "pain points" that can be further explored as the source of possible new solutions It is therefore necessary to identify what organizational elements must be in place, how technological solutions can contribute to better patient progress and ultimately how this can be implemented in a pilot C3 Sunnaas sykehus Oslo kommune

19 Innovation partnership Stroke patient Fase 1 Define needs Fase 2 Market dialogue Fase 3 Tender document/conduct competition Fase 4 Solution development Fase 5 Purchase /marked Requirement analysis -userjourny - workshops - intervjues -bottlenecks -gains Knowlegde collections Identify and uncover needs Determining and selecting the problem Specify requirements and wishes for solution Market dialogue and implementation of the project Publication of needs Ensure that the solution does not exist in the market Dialogue with research communities Dialogue provides input to the requirement specification Qualification spesifications Selection of suppliers Negotiations and sub-goals in development Conceptualization / Prototyping / Testing Implementation of one or more innovation processes Testing and verification of solution Bid for the solutions that will be available for purchase Collaboration with follow-up municipalities / hospitals Risk relief / remuneration after milestones in development Solutions that have international competitive potential New Product / New Service - Global Market Decided to purchase a fully developed solution according to purchase option Finish and enter into a purchase agreement Purchase and implementation Spread of the solution C3 Sunnaas sykehus Oslo kommune

20 Time schedule for the project Oppdatert March - June Identify needs September - November Marked dialogue Follow up with «match making» January 2019 August 2019 Q2/Q Starting the Tender process/competition Solution development Purchase/ marked Giga-mapping - Cong, LI, 2016 HIOA C3 Sunnaas sykehus Oslo kommune

21 Method used to identify the needs A strategy sandbox lab where C3 themes are explored together with partners across areas and across partners was developed. The aim was to explore long-term transformative innovations, before projects are formed. Public Private It will be explorative and explore themes such as the five themes of C3: Home hospitals for children, adults and elderly Mental health with new eyes and new technologies Health seekers' premises for their own health needs Safe and accessible ICT supported healthcare Self-health management and care Research + Other themes can be security and coping and responsibility for own health. C3 Sunnaas sykehus Oslo kommune

22 Strategy sandbox lab in the Stroke Project The strategy sandbox lab was a part of definding the needs in the innovation partnership. The results of the sandbox was used as the basis for the needs and the innovation strategy for the project. Public Private It includes spotting goals and hypotheses about relevant issues. The strategy sandbox explored the needs and opportunities for a better future situation for the stroke patient. Research + The strategy sandbox also produced results that goes beyond the innovation framework of the STROKE project, but may be further developed as topics, projects and programs in C3. C3 Sunnaas sykehus Oslo kommune

23 Strategy sandbox lab in the Stroke Project Plan workshops Run workshops and explore Combine ideas, develop strategy Explore service ecology Visualise and communicate Scenario exploration Opportunity + strategy Discover + define Develop + Deliver 1 day, April 1/2 day 19th 1/2 day, May 2 Plan April 5 th workshop Needs Actors + Value Exchange Plan workshop Plan workshop Offering + meaning Strategy + tactics Plan workshop Strategy sandbox Technol ogy C3 Sunnaas sykehus Oslo kommune

24 Market dialogue September 27th Title: New solutions for rehabilitation of stroke patients - Continue to improve after a stroke Goal: To facilitate active interaction with industry to develop new solutions for rehabilitation of stroke patients. What solutions can be possible? What exists? What can we create together? The inputs will help to form the basis for the tender announcement. Target group: Potential suppliers Format: Full day meeting with short presentations and workshop activities This event is part of Oslo Innovation Week 2018, September 24-28! Learn more at #oiw2018

25 The purpose of the marked dialogue Involve potential private partners in exploring early ideas Go into depth on challenges that users are facing Get new perspectives and create an apetite among the suppliers to provide a solution To become more familiar with the perspective of different stakeholders Input from suppliers regarding what they see as opportunities and as realistic solutions that can be achievable through the Innovation Partnership. Uncover what is offered on the market today and what can be expected for commercialization in the foreseeable future The market dialogue will provide input for the direction of the tender competition

26 The purpose of the marked dialogue We encouraged the potential suppliers to: Be curious and open minded! Ask questions to better understand needs! Share your knowledge! Seek partners!

27 Next step The results of the marked dialogue will be ready week Following the market dialogue, there will be a meeting for match making for suppliers in end of November. Competition will be launched in January 2019 to enter into one or more innovation partnerships. NOK 6-7 million is allocated to pay as remuneration during the development process to suppliers who participate in the partnership.

28 Research following studies BI Norwegian Business School is an independent, not-for-profit foundation and the main provider of research based knowledge on business and management disciplines in Norway. BI Norwegian Business School is following the project for researche purposes Two assosiate professors and two PhD studens are involved C3 Sunnaas sykehus Oslo kommune

29 Research following studies They are looking at the following: Development: How should public sector procurement procedures be developed to relate to innovation? Organization: How should innovative public procurement projects be organized and managed? How do different actors manage to collaborate to achieve the final goal of the project? What are the different players' understanding of their role and how does this influence the process? How is the project implemented in practice and what will happend? Are the intentions changing? How do the different actors influence the project? Business models: What kind of implications does this have for suppliers and their business models? Where are the innovative solutions created? Are the players able to create value and innovative solutions in new areas that the parties had not foreseen?

30 Thank you! Cathrine M. Fuhre DivisionDirector, South East Health region Sykehusinnkjøp HF