adeel ahmed - alfred health - procurement reform & compliance overview
TRANSCRIPT
5th National Hospital Procurement Conference
29-‐30 October 2015, Sydney
Procurement ReformAdeel Ahmed
Operations Manager – Supply [email protected]
Today’s Roadmap….• Alfred Health Introduction• Reform Overview • Alfred Health’s Progress
IntroductionAlfred Health – a major health provider servicing inner south-‐eastern Melbourne from three campuses
The Alfred+ Baker IDI+ Burnet Institute+ Monash University = AMREP
Key Statistics974 beds across 3 campuses• The Alfred (600+)• Caulfield Hospital (200+)• Sandringham Hospital (100+)
2014 -‐15 Alfred Health• Treated 106,950 inpatients• Saw 93,443 ED presentations• Employed 8,432 staff
Major Services Offered
Community hospital, general medical & surgical, Maternity, ED etc.
Major trauma centre, heart & lung transplantation,adult burns unit , Large ICU, bone marrow transplant, renal transplant, 2 EDs, dialysis etc.
Some acute general medical, residential aged care, rehabilitation, community based services, new ABI unit etc.
Key Supply Chain Metrics
• Alfred Health Annual Budget : $1b• Goods & Services Annual Spend : $300 (30%)• Total no. of Contracts managed : 495• Total Spend under Management : 64%• Cost savings target (Annual) : $3m
Reform OverviewGoverned by five guiding policies….
• Procurement Governance• Procurement Strategic Analysis• Market Approach• Contract Management and Asset Disposal• Collective Purchasing
Key Impact/ChangesCurrent vs New Comparison
New reform policies Major changes to existing policies
Procurement Governance
CPO role establishment, increased accountabilities and authorities, evaluation and compliance by HPV.
Procurement Strategic Analysis
Overall spend reviewed and categorised to understand the level of complexity in procuring goods. Only categories that fall in the strategic quadrant of the
procurement matrix will have strategic sourcing strategies applied to them. No significant changes will apply to other transactional categories.
Market Approach No major changes to the existing policy.
Contract Management and Asset Disposal No major changes to the existing policy.
Collective Purchasing No major changes to the existing policy.
Current Issues
• Transactional Approach (procurement thresholds etc.)• Lack of visibility in various processes • Limited resources -‐ focussed on service• Limited capability -‐ people, process and technology• Gaps in contract management • Operating as silos
Team Establishment
• Procurement Reform Project Team
• Procurement Governance Team
PROJECT ESTABLISHMENT
Key Elements Covered• Team Establishment• Analysis: Process, Capability & Spend• Category analysis• Strategic documents development• Policy documents• Capability development• Transition plan approvals and notifications
TOOLS & TEMPLATES
SPEND ANALYSIS
Schematic on Resource Distribution For Strategic Procurement Outcomes
Current Proposed
VS
Planning = Data Analysis + Complexity Analysis +
Strategy Planning + Market Approach etc. (10%)
Sourcing = Tender Preparation + Bidding Process + Evaluation Porcess + Contract Award etc.
(80%)
Contract Management = SLA Monitoring + Supplier
Relationship Management etc. (10%)
Planning = Data Analysis + Complexity Analysis +
Strategy Planning + Market Approach etc. (35%)
Sourcing = Tender Preparation + Bidding Process + Evaluation Porcess + Contract Award etc.
(30%)
Contract Management = SLA Monitoring + Supplier
Relationship Management etc. (35%)
STRUCTURAL IMPACT
Impact to Organisational Structure
• Centralised Visibility• CPO role establishment• Procurement Governance Committee• Introduction to Category Management
Transition RoadmapMilestones Project Stage Target Engagement Initial brief & project kick-‐off meeting Jun-‐14
Gap Analysis Capability gap analysis Dec-‐14
Initial Spend Analysis Initial analysis spend data (12 months) to identify major categories and data sources Dec-‐14
Transition Project PlanMap tasks, key milestones, timing and
responsibilities, including communication and risk management plans
Dec-‐14
Review & Approval (Transition Plan) HS Executive and Board approval of transition plan Dec-‐14
Detailed Spend Analysis Spend Data (12 months), including categorisation and complexity analysis Jun-‐15
Governance Framework HS Procurement Policy Jun-‐15
Procurement Strategy Development
Strategy Development including Procurement Activity, Supplier Engagement, Capability
Development and Contract Management PlansDec-‐15
Health services Board approval Commence transition Jun-‐16
Reform Challenges
• Investment requirements for reform• Capability development• Internal resistance to change• Clinical Engagement
What does it mean to AH• More strategic and efficient approach• Greater probity, accountability and flexibility• Stronger focus on true value for money• More interactive market engagement• Scalability (Complexity vs Capability)• Central Visibility
BETTER PATIENT CARE
