Making the Argument for Asset Management in HealthcarePresentation Transcript
Making the Argument for Asset Management in Healthcare Examining the Cost-Savings Potential of Implementing a Centralised Asset Management System Presenter: Michael Kwok, P.Eng. MBA Vice President, Professional Services October 28, 2009
Trends and challenges in facility capital planning
What is a Centralised Asset Management System (CAMS)
Benefits of CAMS
Ottawa General Hospital
British Columbia Ministry of Health
Q & A
Leading provider of software and services for facilities capital planning and management
Headquartered in Boston, MA, USA
Canadian subsidiary HQ in Vancouver
United Kingdom subsidiary HQ in Reading
Integrated solution combining
Facility assessment services
Capital management software products
Business consulting services
400+ clients in healthcare, government, education & corporate markets
VFA software used to manage over 400 million square metres
Representative Healthcare Clients
Ontario Ministry of Health & LTC (CDN)
British Columbia Ministry of Health (CDN)
Saskatchewan Ministry of Health (CDN)
Central Health Newfoundland (CDN)
Ottawa General Hospital (CDN)
Kingston General Hospital (CDN)
London Health Science Centre (CDN)
U.S. National Institutes of Health (US)
U.S. Navy Bureau of Medicine & Surgery (Global)
U.S. Army Medical Command (Global)
U.S. Indian Health Services (US)
New York-Presbyterian Hospital (US)
Kaiser Permanente (US)
Sisters of Mercy Health System (US)
Tenet Healthcare Corp. (US)
Trends Impacting Healthcare Facility Management
Continued cost pressures
Increased regulatory compliance
Need to support critical operations
Renewed focus on infrastructure and technology investments
Underfunded over last decade
Through 2010, 75% of U.S. hospitals expect to increase capital spending annually by average of 14% [HFMA]
Nearly half of hospital CFOs surveyed by the HFMA reported their infrastructures were deteriorating faster than they could make capital improvements.
Capital Asset Management Systems (CAMS)
COLLECT & Maintain Facility Information
ANALYZE Facility Data
DEFINE Capital Projects & Plans
Annual and Long-term
Renewal, Maintenance, Construction, etc.
Create & manage work orders
Real-time project reporting
COLLECT & Maintain Facility Information Asset Inventory and Condition Evaluation
Compile facility data
Include photographs and CAD drawings
Create detailed descriptions of assessment findings
Develop detailed cost estimates
Estimate replacement values, deferred maintenance and lifecycle costs
Functionality Code Compliance Lifecycle Condition Efficiency COLLECT & Maintain Facility Information Include Sustainability in Condition Evaluation Water Conservation Indoor Air Quality & Environment Site Sustainability Materials & Construction Energy Efficiency
COLLECT & Maintain Facility Information A Centralized Repository of Asset Data
Centralized asset database provides holistic view of the portfolio
Common terminology and platform
Data hierarchy based on organizational hierarchy
COLLECT & Maintain Facility Information A Centralized Repository of Asset Data Common database prevents silos of information, and allows the organization to use the same data for both strategic and tactical requirements .
COLLECT & Maintain Facility Information Building System Data
Plan the information you want to collect prior to assessing sites
Consider all required assets - both vertical & utilities
COLLECT & Maintain Facility Information Asset Requirements .
ANALYZE Facility Data Establish Priorities Region: 13 Campus: West Campus Asset Name: Timberlake Building Category-Priority 1 2 3 4 5 Total Air/Water Quality £0 £0 £0 £6,836 £0 £6,836 Building Code Accessibility £0 £0 £471,020 £0 £118,875 £589,895 Building Code Compliance £46,028 £393,498 £0 £0 £227,534 £667,060 Building Integrity £802,691 £1,219,480 £1,699,412 £4,630 £0 £3,726,213 Energy £0 £0 £0 £43,637 £0 £43,637 Functionality £0 £112,904 £136,187 £161,308 £1,521 £411,920 Hazardous Materials £0 £0 £0 £0 £146,626 £146,626 Life Safety £33,581 £0 £0 £6,364 £3,716 £43,661 Total £882,300 £1,725,882 £2,306,619 £222,755 £498,272 £5,635,848 Crosstabs of Requirements By Category and Priority/Asset Name Priority Description 1 Currently Critical 2 Potentially Critical 3 Necessary - Not Yet Critical 4 Recommended 5 Does Not Meet Current Standards .
ANALYZE Facility Data Understand Impact of Funding Options .
ANALYZE Facility Data Understand Impact of Funding Options
What-if analysis allows various funding scenarios to be evaluated
Industry-standard Facility Condition Index enables benchmarking
Now That You Have It…
What Can You Do With Your Data?
Asset Information Management
Dashboards provide critical overview of
Portfolio value and conditions
Key indicators such as FCI
Potential Level for Certification Certified £348,993 36 Point Levels for: LEED-EB O&M Certification 34-42 Certified 43-50 Silver 51-67 Gold 68-92 Platinum Scorecards: Analyze Against Evaluation System Yes No Yes Maybe Unlikely Sustainable Sites 1 11 1 6 5 £17,501 Water Efficiency 0 10 0 4 6 £21,902 Energy and Atmosphere 2 28 2 4 24 £62,558 Materials and Resources 1 13 1 9 4 £174,446 Indoor Environmental Quality 1 18 1 7 11 £72,586 Innovation and Upgrade 1 7 0 1 6 £0 Existing/Potential Points Score 5 87 5 31 56 Category of Sustainability Existing Potential Cost
Portfolio FCI Comparisons
Quickly understand condition ranges
Compare building types across regions / portfolios
Review asset or system condition variations by location
Capital Budgets Ranking
Prioritize all needs based on organizational objectives
Produce multi-year budgets
Assemble capital improvements into efficient projects
Combine individual projects into multi-year capital plans
Interface with Facility Management systems
Increased Flexibility to Respond to Change
Reduced Waste in Capital Projects
Reduction in Annual Material Costs
Reduction in Emergency Repair Premiums
Reduction in Overall Project Costs
Avoided Costs of Relocation
Avoided Costs of Shutdowns
Avoid/Targeted New Construction Build
VFA Enables a Compelling ROI
The Ottawa Hospital
Academic Health Sciences Center – University of Ottawa
Partner in healthcare delivery in the Champlain Local Health Integration Network (LHIN)
Serves more than 1.5 million people in Ottawa and Eastern Ontario
1100+ Acute Care Beds
130,000+ Emergency Visits
51 Operating Rooms
12,000 staff, 2000 physicians and 1200 Volunteers
Budget of approximately £600 M
2.0 M square feet
18 buildings developed from 1920 -1980’s
1.7 M Square Feet
One integrated building developed in 1980’s.
300 K Square Feet
One integrated building developed in 1980’s.
Facility Management Overview
Many buildings over 60 years old
Facility condition varies across campuses
No consistent documentation/updates
Past assessments were focused
No overall view into all infrastructure
No analysis tools to understand data or proactively plan where investments should be made.
Lacked fully integrated plan
Capital and associated operating plans were not fully integrated
Difficult to prioritize and develop long-term plan
Master Plan Development – no quantifiable data to develop business plans/cases to renovate or replace infrastructure.
Comprehensive Facility Management Tools
Facility Condition Assessment Tool (VFA)
Detailed assessment of all infrastructure - 5 categories.
Quantifies investment required in each category and provides Facility Condition Index.
Development of 10 year plan.
Work Order Management System (TMA)
Ongoing preventative maintenance of assets linked to VFA/Capital Plan.
Allows for integration with labor/operating plan management.
Space management tools
Link assets to locations in space management module.
As Built Documentation
Essential link to VFA and TMA tools when implementing capital development projects and renovation projects.
Benefits and Challenges
Complete infrastructure “picture” and “planning”
Good reporting functionality.
Prioritization of investments - impact of deferred maintenance.
Integrates well with other facility management tools.