Robert LagaidaNovember 2007

Shared Services Update

Baseline Objectives from Respective Business CasesShared Corporate Services

Savings are derived from procurement and reduction in FTEs

Savings to be re-invested to frontline clinical services

Linen Services

Savings are derived from rationalisation and management as a single statewide business unit

Savings to be initially re-invested to meet standards and business sustainability through equipment replacement

Baseline Objectives from Respective Business Cases (continued..)

Food Services

Savings are derived from rationalisation and management as a single statewide business unit

Savings to be initially re-invested to meet food services standards

Current Position

Shared Corporate Services

Service Lines

Service Centres Parramatta and Newcastle established

Corporate Services have been transitioned to Health Support Service Centre on a progressive basis to April 2009, based on the following 4 service lines:- finance- procurement- warehousing and logistics- payroll- employee and recruitment services

Current Position

Single Install Interim statebuild FMIS Operational

New hardware environment set up and operational for payroll services

Oracle HRIS Project commissioned to replace the current Supero system, with 2 initial modules

- employee services

- payroll services

Statewide review of warehousing and logistics completed

Shared Corporate Services (continued..)

Standard Business Practices

Achieved

Standard Chart of Accounts operational

Best Practice Procure to Pay Processing developed

Best Practice Operational Purchasing developed

Shared Corporate Services (continued..)

Shared Business Practice Models developed for:

- finance

- purchasing

- payroll services

- employee services

- recruitment services

Shared Corporate Services (continued..)

Unique Employee Identifier developed

Standard Payroll Cycle developed

Standard Catalogue (Health Item Master File)

Customer Relationship Management System

Currently Underway

Detailed process documentation

HealthSupport Purchase Order

Streamlining of Corporate Forms

Record Archiving Procedures

Linen Services

Fully transitioned and operational from December 2006

Already achieved

- Closure of Cessnock Linen Service

- Closure of Penrith Linen Distribution Centre

- Statewide tender for linen stock

- Reallocation of equipment within Linen Business Unit

- 3 year Pricing and Capital Replacement Strategy

developed

Linen Services (continued..)

Currently Underway

- Progressive introduction of linen management system to

better managed linen supply

- Restructuring of linen service management

- Further rationalisation of linen services and distribution

Food Services

Already achieved

Due diligence for food services within Northern Cluster (NSCCAHSD), HNEAHS and NCAHS) completed and statewide food production units completed

Statewide Food Services Framework developed

Co-management of food services between HealthSupport and Northern Cluster

Food Services Advisory Committee established

Food Procurement Savings with some success

Food Services (continued..)

Currently underway

Review of food production units

Process to delineate the roles of Clinical dietitians, Food Service dietitians and Food Aids

Establishment of Food Business Units within Area Health Services, prior to transition, to HealthSupport

Related Shared Business Strategies - Procurement

Procurement is a key and large component of savings

Health Item Master File

- developed and operational in Service Centre Parramatta

- ongoing refinement and expansion as each Area Health

Service migrates to Service Centres

Related Shared Business Strategies – Procurement (continued..)

- facilitates NSW Health as a single buying organisation

through

* rationalisation of preferred vendors for the same items

* provision of strategic sourcing data

Key Future Issues

Effective Change Management by both HealthSupport and Health Services in terms of

- business services

- impact on staff

Client Health Services’ “buy in” to achieve effective partnership between HealthSupport and Health Services

Transparent pricing policy for services provided by HealthSupport, consistent with Benefits Realisation Strategies

Management of risks associated with legacy systems (eg Supero payroll system) and the development of new system(s) (eg Oracle HRIS)

Accommodation and staff recruitment