John Swords, Head of Procurement, HSE

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The Future of Procurement in Health Services

The Future of Procurement in Health Services

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  • 1. The Future of Procurement in Health Services John Swords Head of Procurement HSE National Healthcare Conference Wednesday, 20th March, 2013
  • 2. Who’s Who – The HSEAn organisation of over 100,000 people, who run all ofthe public health services in Ireland. The HSE managesservices through a structure designed to put patientsand clients at the centre of the organisation
  • 3. Who’s Who – HSE ProcurementHSE Procurement is responsible for strategicsourcing, purchasing, storage and distributionof HSE goods and services to optimiseefficiencies and achieve best value for moneyin the delivery of patient care. HSE Procurement Vision “Everybody will have easy access to high quality procurement services that they have confidence in and that procurement staff are proud to provide”
  • 4. HSE PROCUREMENT STRATEGYEnabling people lead healthier and more fulfilled lives Improved Patient Care Quality & Cost Benefits Customers Communications, Customer Relationship Mgt. Portfolio & Category Logistics & Inventory Management Management (Strategic Sourcing) (Operations) Staff Development & Training Business Support & Enabling Technology Supplier Relationship Management Suppliers
  • 5. Achievements -HSE ProcurementNational Model to Support Procurement in 1. Cost ReductionHSE is a key enabler in achieving 2. Increased efficiencies 3. Streamlined standardised procurement processes 4. Minimising duplication of effort 5. Compliance with RegulationsCross public sector verification process Independent verification process set up by PSA Implementation Board > HSE Procurement selected for Health to participate on a cross public sector verification process > Audited and validated HSE Procurement achievements through an independent verification process by Grant Thornton.Efficiencies and Value Delivered to date Against a backdrop of a 8.3% decrease in staffing levels across Procurement and a loss of expertise – savings achieved: €44.665m - 2010 / €74.045m - 2011 / €50m - 2012
  • 6. Procurement Leadership Team Head of Procurement John Swords Asst Nat Dir Asst Nat Dir Asst Nat Dir Portfolio & Category Logistics & Inventory Business Management Unit Management Management Julie Ryan Brendan White Brian Long Asst Heads of Portfolio & Category Management Michael DriscollProfessional Services, Vacant Post Equipment, Laboratory, Medical, Surgical, Hotel Services, ICT, Diagnostic Pharma Utilities Martin Quinlivan Office Joe Redmond Asst Heads of Logistics & Management Eddie Hogan Francis Mollen HSE HSE HSE South HSE West Stephen Lynch Dublin NE Dublin Mid Leinster Brendan Shovlin
  • 7. Portfolio & Category Management€3 Bn. Contractible ExpenditureDetermines the level at which the HSE – should manage each category – enter the marketDescribes how specific categories will be contractedObjective of the category strategy – Determine opportunities in the supply market – Level of aggregation – Contracting approach – Performance requirements, service level requirements and logistics approachPlanned, proactive and continuous engagement with the customer andsupplier communityGoverned by EU procurement rules and HSE Procurement Policy
  • 8. Medical, Surgi Equipment, Lab Professional Hotel Services & cal & Services, ICT & Office Utilities & Pharma DiagnosticsAids & Appliances Laboratory Prof Services FoodserviceSurgical Imaging Insurance Janitorial ProductsOrthopaedic Diagnostics Train & Dev UtilitiesRenal Dialysis Medical Equip Trans & Travel Restaurant & KitchenDrugs & Medicines Surgical Equip ICT Clothing & TextilesVaccines General Plant Office Facilities & PropertyHygiene Continence Physics & Bio Med Furniture MgtOphthalmic Vehicles ContinenceCardiology Medical Gases Waste Management
  • 9. Logistics and Inventory ManagementNew model for Logistics & Inventory Management within HSEComprehensive Review resulted in the followingrecommendations: • Increase level of management of stock at point of use (POU) • Consolidation of fragmented stores infrastructure into a National Distribution Centre distributing to 9 Hubs • Implementation of appropriate supply channels
  • 10. NDC & Hubs
  • 11. Business Management UnitProcurement related communications internal & externalInternet & Intranet Homepage: www.hse.ie/eng/about/Procurement/Procurement related training and up-skilling requirements tosupport staffBusiness Support in respect of procurement – for example* National Catalogue* Development of electronic contracting informationCustomer Relationship ManagementSupplier Relationship Management
  • 12. Shared Services - HSE Liam Woods – Director of Shared Services New arrangements for the future health service require radical change in the way we approach the provision of shared or common services to meet the needs of all parts of the health system The financial challenges we face mean that we must take advantage of any opportunity for increased value in the way we provide such services Reduce Duplication Shared Services includes such areas as Procurement, Estates, Operational ICT, Accounts Payable and Payroll plus a range of other services provided through common platforms, either internally by our own staff or by external service providers
  • 13. The National Procurement Office Government commissioned Review of Public Sector Procurement undertaken by Accenture Key Recommendation - Development of National Procurement Office - Appointment of a Chief Procurement Officer - Sector Leads concentrating on aggregation of spend across all Government Departments
  • 14. Setting the Scene Capacity and Capability Review of Central Procurement Function means One voice for Procurement at government level supported by one voice at sectoral level Common Categories cross sector to be managed through National Procurement Office i.e. to establish a single integrated procurement function accountable for policy, sourcing and category management of common categories and support operations
  • 15. NPO Structure
  • 16. The Future of Procurement in Health ServicesShared ServicesRequirement to provide service by way ofService Level Agreements to * Trusts / CommunityOperational managed assistanceService / Clinical managed assistanceWorking with the NPO
  • 17. Ways of Working.. Health will manage health specific categories NPO will manage categories of goods and services that have high levels of standardisation commonly used across all sectors with multiple users, e.g. stationery and office supplies Collaborative Stage where it is possible we will lead out on some of the areas of NPO being best placed to do so Purchase to Pay – Logistics remain within organisation Management of Contracts remain within the sector Possibility of migration of staff from Health to NPO but important for Health to maintain strategic sourcing
  • 18. Conclusion HSE Procurement has a role on Transition from Sector to National Plan due for Government April 2013 to be approved Outsourcing / AssistanceHealth has work to do with major change to initiate – focus now on achievements and benefits attained by HSE Procurement to date and ensure a consistent approach for the future