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General Staff Update

The BC Health Authority Shared Services Organization, an initiative that includes all six BC health authorities, was launched at the beginning of 2008. Its purpose is to find opportunities where the health authorities can improve cost effectiveness by working collaboratively on common services. By ensuring that we get the most value for every dollar spent, the health authorities will maximize the resources that go to direct patient care. The organization’s vision is Province-wide Shared Services. Better Value.

The Shared Services Organization is governed by a Board of Directors consisting of the CEOs of the six health authorities, the Chief Operating Office of the Ministry of Health Services, and two external members. As part of the startup activities, the Board has identified the following values as key to successful implementation of a shared services organization:

  • Service Quality
  • Customer-Focused
  • Continuous Improvement
  • Value for Money
  • Evidence-Based Improvements
  • Outcome-Oriented
  • Commitment to Employees

We can update you that the business case teams are very close to completing their work. This has required the involvement and hard work of many people from across the health authorities throughout the summer. Each business case is considered from a system-wide perspective not an individual health authority perspective. To-date, these include Supply Chain Management (common products procurement, warehousing and logistics), Payroll/Transactional Human Resources, and Information Technology (data centre, desktop, service desk, and network Services).

We will provide information on each business case as it is approved. Detailed implementation plans will then be developed to guide transition from the current service delivery models to the new ones.

It is recognized that changing how services are delivered could affect both the people who deliver them and those who receive them. Once the implementation details are known – things such as the scope of services covered by the business case, how services will be provided in the new model, when changes will happen, which employees will be impacted and what are their options – the information will be shared.

Clients and suppliers can expect to receive information in a timely way prior to changes being made to how they receive services. Opportunities for providing feedback or for receiving additional information will be available.

In fall 2008, we will establish a website that will include background information and regular updates on the Shared Services Organization that will be of interest to health authority staff and physicians, suppliers and partners.

Next Steps for Supply Chain – common products procurement

During their development of the business case, the Supply Chain team identified some immediate opportunities (based on expiring contracts) that need to go to market for renewal.

Even though the business model and implementation plan are still being finalized, the Board has decided to consolidate the needs of all health authorities into four strategic sourcing opportunities that can take effect immediately. These include: Home Oxygen, Cardiac Rhythm Disease Management (ICDs / pacemakers), Renal (acid and bicarb concentrates, dializers) and Trauma (orthopedics). All health authorities currently purchasing a category of products and / or services covered by these strategic sourcing opportunities will participate in the process.

The Shared Services strategic sourcing approach will start by looking at Commodity Profiling in order to develop an understanding of the internal market. This includes user requirements, and expenditure analysis. It summarizes what we bought, who we bought it from, how we used it. This step involves supply chain staff and clinicians from across all six health authorities.

The next step is a market analysis that identifies potential suppliers, their current share in key markets, and new technology and developments. Once these two steps have been completed, the Supply Chain team will develop a strategy for each category. This could include things such as the use of primary and secondary suppliers, desired pricing and optimal contract length. Documents (i.e. RFI, RFQ, RFP) to take the opportunity to market will then be issued. Following supplier responses, the process will proceed to evaluation (with clinical / user involvement), negotiation, contract finalization and then implementation.

Clinical and user engagement is recognized as a critical component of effective strategic sourcing. Clinical involvement from across the health authorities will continue to be important at key points in the process particularly during the user requirements and evaluation phases.