delivering value to the NHS Delivering value to the NHS 1 NHS
Shared Business Services Ltd 2011 Supplier Forum 14 February
2011
Slide 2
delivering value to the NHS 2 NHS Shared Business Services Ltd
2011 Objectives of the day Provide more information about NHS SBS
and how we work To gain an appreciation of some of the issues
suppliers to the NHS face To facilitate a forum for sharing of
ideas To enable feedback of concerns To facilitate the ongoing
sharing of information To identify improvements and ways in which
we could all work better to make this happen
Slide 3
delivering value to the NHS 3 NHS Shared Business Services Ltd
2011 Steria & Department of Health - a unique joint venture
Original shared service centres NHS experienced people Oracle EWA
Financial support Management & Business Devt Service
optimisation Best practice Offshore capability Commercial expertise
saving the NHS 250m over 10 years = 12,500 additional nurses Unique
50:50 JV Commercial organisation Joint governance Customer focus
Best practice World Class cost savings Surplus
Slide 4
delivering value to the NHS 4 NHS Shared Business Services Ltd
2011 About NHS SBS Core Service Lines: Finance & Accounting
Payroll & HR Family Health Services Commercial Procurement
Solutions Typical savings for Trusts of between 20% and 40%
Employing 1,430 people, including 670 in India 40% of NHS
organisations are NHS SBS clients 27m people in England have NHS
care from NHS SBS clients
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delivering value to the NHS 5 NHS Shared Business Services Ltd
2011 Integrated Delivery model Integrated delivery India : UK
working together in a joined up approach as One team Multi shift
operations - 17 hours working window - Early morning working job
ready before NHS trusts staff arrives in office Dedicated offshore
transition team cost efficient, understands offshore challenges and
requirements
Slide 6
delivering value to the NHS 6 NHS Shared Business Services Ltd
2011 Customer Profile 130 Finance & Accounting clients Over 31
billion payments / per annum 12 billion of NHS debt recovered per
annum 60,000+ trained users on the Oracle system 57 Payroll &
HR clients Paying 200,000 NHS employees Processing 2.5 million
payroll transactions per annum Extending into HR Shared Services 16
Family Health Services clients NE London sector seven Trusts East
Midlands region nine Trusts 50 Commercial Procurement Solutions
clients
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delivering value to the NHS 7 NHS Shared Business Services Ltd
2011 Voice of the Customer: would recommend NHS SBS 2008 YES: 80%
NHS Directors of Finance & HR YES: 85% 2007 YES : 39% 2009 2010
YES: 95%
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delivering value to the NHS 8 NHS Shared Business Services Ltd
2011 NHS SBS - World Class Hackett Global Benchmark Hackett Value
Grid TM High Low High 1Q1Q 1Q1Q Other Companies in 2010NHS SBS
Effectiveness Efficiency World Class 2010 2004 2007
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delivering value to the NHS 9 NHS Shared Business Services Ltd
2011 Summary NHS SBS on target to achieve savings for the NHS of
250m over 10 years and play a role in delivering QIPP back office
targets NAO verified at least 50 million cost savings to the NHS so
far Estimated revenues of around 53.4m in 2010 (12.6% growth) a
successful and profitable public/private sector partnership
Leveraging NHS SBS capability will result in far greater savings to
the NHS NHS SBS can be a key facilitator of change in the NHS GP
consortia, GP commissioning, smooth transition to new landscape
1.06m royalty fee shared with NHS SBS clients in 2010 (in addition
to cost and efficiency savings already achieved by NHS Trusts), and
expect to do the same in 2011
Slide 10
delivering value to the NHS Delivering value to the NHS 10 NHS
Shared Business Services Ltd 2011 GP Commissioning
Slide 11
delivering value to the NHS 11 NHS Shared Business Services Ltd
2011 ...the biggest planned overhaul of the NHS in England in its
63-year history 19 January 2011
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delivering value to the NHS 12 NHS Shared Business Services Ltd
2011 Aims of the proposed changes The main aim of the change is to
put patients at the heart of everything the NHS does; focus on
continuously improving those things that really matter to patients
- the outcome of their healthcare; empower and liberate clinicians
to innovate, with the freedom to focus on improving healthcare
services To do this certain admin functions are being removed
putting the control into the GP Practices, who will become part of
a local consortia There is also a review of the Arms Length Bodies
such as NHS Direct, NHS Information Centre
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delivering value to the NHS 13 NHS Shared Business Services Ltd
2011 Expected timeline April 2011 April 2012 April 2013 April 2014
PCT Provider Services ALBs & SHAs PCT Commissioner Services All
trusts become foundation trusts Services to move to a new home
Organisation disappears Gain Foundation status or cease to exist
Organisation disappears
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delivering value to the NHS 14 NHS Shared Business Services Ltd
2011 Commissioning will have 3 Main Pillars National Commissioning
Development Programme National Commissioning Board GP Commissioning
Consortia Commissioning Support
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delivering value to the NHS 15 NHS Shared Business Services Ltd
2011 GP Practice / NHS Link
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delivering value to the NHS 16 NHS Shared Business Services Ltd
2011 Leading people Leading a consortium Serving a local community
Leading Commissioning Leading improvement & innovation Managing
selfForging partnerships Partnering with patients & the public
Engaging professionals Promoting research & development Leading
a teamBusiness leadership Partnering with local authorities Setting
prioritiesContinual quality improvement Setting visionMedia &
communication Partnering with providers Shaping demandPromoting
sustainability Leading changeHorizon scanning Evaluating population
needs Designing services GovernanceProtecting & promoting
health Leading contracting Market shaping Sharing
commissioning
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delivering value to the NHS Delivering value to the NHS 17 NHS
Shared Business Services Ltd 2011 Review and Comments
Slide 18
delivering value to the NHS 18 NHS Shared Business Services Ltd
2011 The business of care
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delivering value to the NHS 19 NHS Shared Business Services Ltd
2011 Patients: Choice of practice & provider Practices: Holder
of contracts with provider and consortia Consortia: Co-ordinate
healthcare development and acute contracting for practices manage
risk pool Reg Health Board: Award Primary Care contracts and assess
performance and healthcare with ties to local authorities and
public health Care Providers: Deliver care to tariff Manage input
prices/costs Health Industry: Supply goods, medicines, equipment,
staff And provide managed services The health market choice,
commerce and care
Slide 20
delivering value to the NHS 20 NHS Shared Business Services Ltd
2011 With healthcare organisations facing structural change to
align activities to meet healthcare business objectives and
pressures. Challenges and opportunities balance out Income
suppressed in line with demand - QIPP and CIP challenges Costs and
risks from block contracts - Greater market competition and choice
Increased scrutiny of procurement decisions Increased opportunity
for focused optimisation of spend as commercial lever - freedom for
collaboration and partnering - greater use of service/supply
contracts - rewards for high performance - growth in private
patient business
Slide 21
delivering value to the NHS 21 NHS Shared Business Services Ltd
2011 CPS - translating these challenges into simple service offers
to meet healthcare business objectives Systems to direct and manage
caresupplies, drive costs down and manage risk Insight to define,
design and deliver improvements in care, and business process and
performance, driving income
Slide 22
delivering value to the NHS 22 NHS Shared Business Services Ltd
2011 Procurement and SBS CPS solutions focus on understanding the
management of costs, and focus on care Cost of population health
utilisation Cost of patient pathway Cost of medicines management
Cost of purchasing Cost of provider performance and quality Cost of
outcomesCost of the business
Slide 23
delivering value to the NHS 23 NHS Shared Business Services Ltd
2011 Understanding our costs and spend Contracting compliantly to
secure supplies, and drive value Purchasing processes and systems
to support day to day operations Financial and accounts systems to
manage transactions Tailored Procurement and contracting solutions
for bespoke needs The SBS Commercial Procurement Solutions The
business cycle driving our services
Slide 24
delivering value to the NHS 24 NHS Shared Business Services Ltd
2011 SpendContractCataloguePurchasePayPerform The SBS Commercial
Procurement Solutions process aligned services
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delivering value to the NHS 25 NHS Shared Business Services Ltd
2011 Optimising Spend Services: Spend analysis and profiling
Legally compliant routing and aggregation Optimisation analysis
Procurement Services: Contract & framework portfolio
Contracting calendar SAP Supplier catalogues Procurement : Spend
analysis tools Etendering tools Evaluation tools Catalogue &
P2P systems Commercial services: Procurement & contracting
project management Contract management services Inventory
management SBS group interests CPS Products and services for
business challenges.
Slide 26
delivering value to the NHS 26 NHS Shared Business Services Ltd
2011 Spend Spend capture and data cleansing & coding Spend
profiling Spend & price benchmarking Spend matching Contract
Strategic sourcing opportunity assessments Spend mapped to
frameworks and contracts to secure supply and value Rolling
contracting programme Enhanced contracting through national
competitions and SAP Managed contract performance and SRM Catalogue
Catalogues of suppliers/products and prices Maintained database
Integration service with trust systems Links to spend benchmarking
services and P2P The SBS CPS strategic sourcing `contracting
offer
Slide 27
delivering value to the NHS 27 NHS Shared Business Services Ltd
2011 Analysis of spend data Data mapped to contracts and frameworks
Procurement plan to aggregate volumes and shape markets Volume
committed contracts and catalogues Purchase to pay systems
providing compliance, control and focused spending Strategy steps
in increasing spend management Spend Under Management Benchmarks*:
Laggards 30% - Industrial average 30-70% - Best in class 70%
Slide 28
delivering value to the NHS 28 NHS Shared Business Services Ltd
2011 ReduceIncrease Best practise pathways Product standardisation
Use of economies of scale Clinical variation Spend fragmentation
Trust objectives
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delivering value to the NHS 29 NHS Shared Business Services Ltd
2011 Reduction in variation, improved performance Aggregation of
demand, driving value Managed compliance, supporting control All
NHS Strategically spent and levered for value The vision for
managed spend
Slide 30
delivering value to the NHS 30 NHS Shared Business Services Ltd
2011 SAP Mini Competitions Specific Agreements Framework Agreements
Spend refined, aggregated and commited over time All NHS
expenditure covered by Frameworks/Contracts
Slide 31
delivering value to the NHS 31 NHS Shared Business Services Ltd
2011 Capacity Review RationalisationStandardisation Market
engagement Procurement Contracting commitment Mobilisation
Compliance commitment Delivery The SAP pathway The route to
business performance and savings
Slide 32
delivering value to the NHS 32 NHS Shared Business Services Ltd
2011 Product Phase 1 Pathway Phase 2 Innovation and Continuous
improvement Phase 3 SAP Process Project team; CPS, DOFS, SBS,
Clinicians Supporting; Procurement, Business partners Project team;
CPS, AQuA, NICE, MHRA, NPSA, Clinicians Supporting; Procurement,
DOFS, Business Partners Project team; Clinicians, Strategic
Suppliers, NICE Supporting; CPS, MHRA, NPSA, Business Partners
Analysis - Review Spend data - Benchmark Pricing Pathway Efficiency
Review -Review processes in pathway -Product use for patient/ task
Deliverables -Efficiency, savings, innovation -Full Standardisation
Product Validation -Developing exact specifications -Evidence based
selection Selection of Strategic Partner -Drive product development
-Deliver further efficiency and utilisation savings Pathway
workstreams -Pathway Product workstreams -Patient Level Costing
Product efficiency -Demand management - Right product for patient/
task Innovation and improvement -New product development
-Implementation of innovative products Savings and benefits
delivery -Establishment of ongoing KPIs and targets Clinical Review
-Share clinical expertise -Consider NICE guidance Procurement
-Procure with commitment - Initial Standardisation Implementation
and savings - Implement contractual outcome
Slide 33
delivering value to the NHS 33 NHS Shared Business Services Ltd
2011 Framework Agreements Catalogues Strategic Advantage Programme
Security of Supply EU compliant procurement Aggregation of
expenditure Supplier details Product Pricing Invoice Matching Link
to eprocurement Supplier Rationalisation Product standardisation
Contracted Volumes Driven compliance 1.We will support securing
supplies, procuring compliantly, and in optimising your spend
volumes. 2.We will ensure there are business ready catalogues for
organisations to use in operational purchasing 3.We will continue
to move frameworked volumes, committed customers, and commercially
responsive suppliers closer together through continuous SAP
rounds.
Slide 34
delivering value to the NHS Delivering value to the NHS 34 NHS
Shared Business Services Ltd 2011 Getting Invoices Paid
Slide 35
delivering value to the NHS 35 NHS Shared Business Services Ltd
2011 Purchase to Pay Four Locations 350 Staff Oracle 11.5.10i
System 55,000+ End Users eProc Procurement
Slide 36
delivering value to the NHS 36 NHS Shared Business Services Ltd
2011 Purchase to Pay 4.5 M AP Transactions 31B Payment Value 6B
Procurement 3.75 M Scanned Invoices 300,000 / 450,000
Electronic
Slide 37
delivering value to the NHS 37 NHS Shared Business Services Ltd
2011 Purchase to Pay 5% Returns 25,000+ Payments Runs 175,000
Suppliers 40% PO 60% Non PO
Slide 38
delivering value to the NHS 38 NHS Shared Business Services Ltd
2011 AP Overview Paper and electronic Post and Scanning Paper
documents Verification Rules engine Non PO
Slide 39
delivering value to the NHS 39 NHS Shared Business Services Ltd
2011 AP Overview Notifications PO Automated Payments Compliance
Supplier
Slide 40
delivering value to the NHS Delivering value to the NHS 40 NHS
Shared Business Services Ltd 2011 Questions
Slide 41
delivering value to the NHS 41 NHS Shared Business Services Ltd
2011 Communication Clients SBS Suppliers 175,000 suppliers 55,000
users 350 staff System Email Outbound Inbound Reporting Statements
Web
Slide 42
delivering value to the NHS 42 NHS Shared Business Services Ltd
2011 Action or Information? All calls recorded Case record created
Query or follow up undertaken Automated email log When Why What How
Process fix Follow up Case closed Action Request Fix Query
Client
Slide 43
delivering value to the NHS 43 NHS Shared Business Services Ltd
2011 Two way communication You dont tell us when it has gone wrong
You dont tell us when it was resolved The client told me. What
dispute?
Slide 44
delivering value to the NHS Delivering value to the NHS 44 NHS
Shared Business Services Ltd 2011 Lunch
Slide 45
delivering value to the NHS 45 NHS Shared Business Services Ltd
2011 Communication Self Help Improved support system for Service
Desk Auto email information responses Statement production Customer
Focus Groups 5 Queries Overview of Invoice Status Consistency of
communication Across suppliers Across systems
Slide 46
delivering value to the NHS 46 NHS Shared Business Services Ltd
2011 Process E- invoicing solutions being investigated Root-cause
analysis with clients and suppliers Process standardisation
initiative E-invoicing Emailed invoices ADI files, etc Invoice cost
Consistency of approach
Slide 47
delivering value to the NHS 47 NHS Shared Business Services Ltd
2011 Service Context Forum on-going activity Linked-in/huddlespace
Procurement Planning horizon being developed by CPS Knowledge about
NHS SBS and the wider context NHS SBS as a framework?
Slide 48
delivering value to the NHS 48 NHS Shared Business Services Ltd
2011 Objectives of the day Provide more information about NHS SBS
and how we work To gain an appreciation of some of the issues
suppliers to the NHS face To facilitate a forum for sharing of
ideas To enable feedback of concerns To facilitate the ongoing
sharing of information To identify improvements and ways in which
we could all work better to make this happen
Slide 49
delivering value to the NHS Delivering value to the NHS 49 NHS
Shared Business Services Ltd 2011 Close
