Health Business Services Health Procurement Intertrade Ireland Dublin 2015
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1 Health Business Services Health Procurement Intertrade Ireland Dublin 2015
2 Agenda HSE Health Business Services HBS Procurement
3 1 HSE
4 HSE Overview HSE provides all of Ireland's public health services in hospitals and communities across the country. Employs 100,000 Budget 12bn p.a. Contractible Non Pay 1.8bn p.a. Expenditure on pharmaceuticals 2.5bn p.a. 52 Acute Hospitals Extensive Community Presence - Health Centres - Community Hospitals - Primary Care Network 24/7 Services
5 HSE Overview / continued. Any Given Day 12,000 inpatients 2,000 day cases 8,000 outpatients 600 Emergency Ambulance Calls 3,000 A & E Attendances 33,000 Home Help Hours 2,000 Callers to GP Out of Hours Service 7,000 people in Sheltered Work 5,000 Children in Care 3,000 people in Rehab Training An 8% increase in population since 2006 with a 14% increase in the number of people over 65 years of age
6 Seven Hospital Groups RCSI Hospitals Group (RCSI) Dublin Midlands Hospitals Group (TCD) Ireland East Hospitals Group (UCD) South/South West Hospitals Group (UCC) Saolta Hospitals Group (NUIG) University of Limerick Hospitals (UL) Children's Hospital Group (All)
7 Community Healthcare Organisations
8 2 Health Business Services
9 Health Business Services Health Business Services is Shared Services. Health Business Services customers include all publicly funded public and voluntary healthcare agencies. The creation of Health Business Services is a key support and enabler to the wider health reform. Health Business Services will serve all elements of the health system including the voluntary sector and will be driven by a strong awareness of patient needs and the challenges facing the wider health environment.
10 Health Business Services Vision To be a customer focused provider of leading practice business services.
11 Health Business Services Organisation Chart
12 3 HBS Procurement
13 HBS Procurement Procurement in the HSE should be interpreted to include all of the activities involved between the identification of a requirement for goods or services right through to their acquisition, delivery to the point of use and in some cases their eventual disposal
14 Role HBS Procurement is responsible for sourcing, purchasing, storage and distribution of goods and services. Savings of 230m between 2010 and 2014 Delivering a high quality of service to patient/client care providers. Developing and maintaining an accredited, responsive and sustainable supply base Ensuring compliance with governing procurement legislation and EU directives and government guidelines Effective use of funds providing sustainable value for money.
15 Background A new operating model for Health Procurement is being implemented in the context of unprecedented change including; New Organisational Structures for Acute Hospital Services (7 Hospital Groups) & Primary Care (9 Community Health Organisations). Health Business Service (HBS) Mobilisation. Government Decisions and mandate to implement a new national Procurement Model Single Sector Sourcing Function for Health. Office of Government (OGP) Mobilisation. HBS Logistics National Distribution Centre (NDC) mobilisation. HBS Procurement is currently in transition to a single sourcing and contracts function for the Health sector in the context of these major change programmes. Focus is on meeting Customer Quality, Service and Commercial requirements within a robust framework which meets Corporate Governance and Compliance needs. 15
16 New Government Procurement Operating Model Health Education Defence OGP Local Government Common Policies Common Systems, Processes and Data Management Common Governance The Public Service will speak with one voice to the market. Common goods and services will be sourced from one office, formed from resources who will come together from across the civil and public service i.e. the Office of Government Procurement (OGP). Health, Education, Local Government and Defence will each retain a single sector procurement function to procure their sector-specific categories. 16
17 New Government Procurement Model - Categories OGP Led Categories Professional Services Facilities Management and Maintenance Utilities ICT and Office Equipment Marketing, Print and Stationery Travel and HR Services Fleet and Plant Managed Services Sector Led Categories Local Government Minor Building Works and Civils Plant Hire Health Medical Professional Services / ehealth Medical Equipment & Supplies Medical and Pharmaceutical Supplies Surgical Equipment & Devices / Implants Defence Defence and Security Education Veterinary and Agriculture Laboratory Equipment 17
18 One Voice One Voice concept extends beyond sourcing to include logistics, business support and programme management. Improved Patient Care Quality & Cost Benefits Customers Public and Voluntary Health Agencies Customer Service Ethos / CRM Portfolio & Category Management (Sourcing & Contracting) Staff Development & Training Business Support & Enabling Technology Supplier Relationship Management Suppliers Logistics & Inventory Management (Supply Service Ops) Intentional Informed Integrated Strategy
19 HBS Procurement Directorate Sourcing & Contracting National management of expenditure categories Logistics & Inventory Mgt Responsibility for availability of goods at Point Of Use Business Support Provide timely, accurate and comparable management information Increase the level of professionalism and foster the development of deeper skills in all areas of procurement
20 Sourcing & Contracting Portfolios 1. Medical Care & Pharma Community Funded Schemes Medical Devices & Care Products Pharma 2. Surgical/Interventional Devices & Consumables - PPI Surgical Devices & Implants - Surgical Consumables - General Theatre Equipment 3. Equipment Laboratory & Diagnostics - Medical Equipment & Diagnostics - Capital Project Equipping Services - Specialist Theatre Equipment 4. Medical Professional Services - ehealth - Health HR and Professional Services - External Health Services
21 Logistics & Inventory Management 1. Continue effective management of service delivery 1,000 physical deliveries per day 2,500 direct deliveries per day 400,000 square feet of storage 274 POU locations ( 50m) 90,000 sku s (3,000) 400m p.a 2. National Distribution Centre
22 Logistics & Inventory Management Consolidation of fragmented stores infrastructure into a National Distribution Centre (NDC) distributing to 9 Hubs NDC & Regional Hubs Increase level of management of stock at point of use (POU) Implementation of appropriate supply channels Enabling information systems and infrastructure
23 HSE & Marketplace Ensure continued and early access to innovative and other technologies for Irish patients through commercial agreements based on: - affordability - sustainability - transparency - continuity and security of supply - value for money Limited Financial Resources
24 What are the Benefits for the Market? Structured engagements with Public and Health Sectors Equal access and equal treatment Transparency of process Economies of scale Improved communications Improved demand management Category Specialisation Single point of contact for corporate commercial issues Standard process and documentation
25 HSE Expectations HSE Supply Agreements must realise four key objectives: 1. Quality Products & Services 2. Compliance 2. Value For Money 3. Risk Management Standard Pricing Base across the HSE / HSE Funded Agencies / Community Schemes
26 Summary Public Sector Savings Target: 500m over 3 Years Health Savings Target 2015: 30m Health Savings Target 2016: 30m All HSE funded agencies will collaborate regarding procurement, delivering one voice for health sector procurement. All HBS Customers include all publicly funded public and voluntary healthcare agencies Health Procurement NDC gives local suppliers / SME access to national distribution. 4 Health Sourcing Categories : Medical Care & Pharma, Surgical Devices & Consumables; Equipment Labs & Diagnostics; Medical Professional Services,
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