Public & Private Factory per gli investimenti sanitari
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1 Management per la Sanità Public & Private Factory per gli investimenti sanitari Strumenti manageriali per partnership di valore III Edizione Johan Folkunger Director Business Development, Philips Nordic
2 The Karolinska Philips Public Private Partnership - A 14 year partnership to transform helathcare Content PPP Partnership What is it about Rationales - why was it done How was it done the procurement process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 2
3 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 3
4 Karolinska s drive for innovation Transforming Healthcare High profile University hospital 2 sites in Stockholm: Huddinge and Solna Extension Solna facility with new building (730 beds) First patients 2016 fully operational 2017 PPP (Skanska+Innisfree) total investment 1.8B + 450M Why HC costs are escalating and innovation is the answer Regain position as world leading academic hospital Political ambition: NKS as engine for Stockholm s global life science ambition in 2025 Reduce population health costs How Specialization and patient centric innovation Focus on specialized and highly specialized patient centric care, research and education Enforce collaboration between industry, healthcare, clinical / basic research and education What Supplier partnerships to speed up innovation Five isolated tenders for supplier partnerships New ways of working in research as well as care flows to speed up innovation and transform healthcare 4
5 Split of procurment for imaging Imaging for NKS 15% 85% Philips Careflow: - Advanced cancer in the lower pelvis Careflow: - Acute infarction Careflow: - Stroke Functional contract for Imaging Innovation partnership PET-CT MR (Siemens) Angiografi (Philips) (GE) 5
6 Innovations and top performing equipment to secure health care improvement over time The procurement will lead to health care improvement over time by securing top performing equipment over time continuous technical development in near vicinity of clinical environment based on the needs of the patients long-term innovation partnership 6
7 Philips and Karolinska University Hospital Partnership May 6 th, Royal Philips the Stockholm County Council (SCC) signed a partnership agreement. The new Karolinska University Hospital will have access to state-of-the art imaging solutions and services for a multi-year term at predictable costs. The agreement comprises R&D, an innovation program and education, and the procurement, installation, maintenance, upgrading and replacement of the medical imaging equipment for the new hospital site for Karolinska in Stockholm, Sweden for a 14-year term. Signing Ceremony 7
8 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 8
9 The gap between the demand for health care and available resources is growing rapidly MSEK Stockholm County s development of healthcare cost & financing Costs Financing Gap Development and innovation are key success factors in contending the future challenges in health care Source: Note: SKL, SLL Long term investigation According to the budget in balance law requirement a budget deficit of this kind will not materialize. These are illustrative calculations, showing the need for cost containment 9
10 Innovative procurement is a key enabler for Karolinska University Hospital when managing challenges and defining and realizing goals and visions Value Health care Procurement Industry Academia Value Value 10
11 The Medical Imaging & Function project has since its beginning in 2011 aimed to achieve four goals Medical Imaging & Function Project Goals Ensure equipment functionality over time and even performance Enable research, development, education and innovation of excellent quality Ensure adherence to the set NKS installation and implementation timeline Cost efficiency Key in enabling achievement of the set goals is that the procured partner, Philips, is also a strong strategic partner 11
12 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 12
13 Innovation procurment is a tool for Karolinska to reach its objective and vision Procurement Industry Health care provider! Academia 13
14 Karolinska University hospital uses different procurment models depending of required/expected degree of innovation Försörjningspaket kategoriserat efter grad av innovation Innovationsupphandling Upphandling av innovationer Upphandling av lösning som i dagsläget ej finns Innovationer forskning Innovationer för samhället Innovationer för eget bruk Innovationsvänlig upphandling Upphandling där lösningen möjliggör vidare innovation Utvärderingskriterierna måste vara kopplade till innovation FoU Bidrag Förkommersiell upphandling Konkurrenspräglad dialog Projekttävling Upphandlingsinslag Förhandlat förfarande Öppet förfarande Selektivt förfarande LOU Innovationsgrad FoU XQuality Innovationsgrad Bild & Funktion Operation Upphandlingsinslag Cyklotron Paket n LOU Metodboken för innovationsupphandling inom hälso- och sjukvård 14
15 The project was initiated in the autumn of 2011 the Long-term Partnership ( MES ) deal between SCC and Philips was signed on the 6th of May 2014 Start-up of the Medical Imaging and Function project Today NKS is completed Pre-study / Analysis & Design Competitive dialogue to scope a solution 3 vendors participating Ended with a tender 6. Equipment selection 5. Installation Equipment selection Commissioning Installation Commissioning Governing structure Long-term Functional & Innovation Partnership with Philips 4. = Phase 4 5. = Phase 5 6. = Phase 6 15
16 A pre-study was launched a number of key challenges and pre-requisites was identified in the pre-study Extensive procurement Highly advanced tecnical equipment Need of increased number of innovations Main challenges and pre-requisites for Medical Imaging and Function for NKS Rapid technological development Highly specialised top modern university hospital Complex installation and commissioning 16
17 Prestudy questions adressed (not exhaustive) How can NKS be a World class hospital for the years to come? Will time frames for information and installation leave us with old equipment? Is it possible to handle coming updates and/or upgrades in the procurement? How could we handle future exchange of equipment with a long term agreement? How could we handle changes in technology in the future with a long term agreement? Is it possible to establish a long time research and development agreement with a supplier if the equipment is not always world class? 17
18 In conclusion, the challenges and objectives were best addressed with a long-term MES contract/partnership with major innovation partnership component procured with a competitive dialogue Overall Solution One partner with an overall responsibility Long-term Functional Contract ( MES ) & Innovation partnership Procurement using competitive dialogue 18
19 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 19
20 The MI&F deal is unique in its size and partnership ambition incorporating new ways of working developed within the competitive dialogue that preceeded Philip s bid... is a Managed Equipment Services partnership ( MES )... spans 14 years, with a 6 year optional expansion... defines a framework and ambition for an overarching innovation partnership aimed at improving healthcare solutions over time... entails the ongoing provision of medical imaging functionality initially covering 172 different equipment needs, of which 48 are heavy modaliteties such as CT, MRI etc - Will include the supply and replacement of equipment - Philips own, as well as other suppliers, depending on the outcome of each individual selection process - Includes to maintain functionality over time to keep pace with techology innovation, service/uptime regimes, ongoing education to ensure that the techology and its performance is at all times relevant and in line with set ambitions - Dedicated Site organization The deal 20
21 Guiding principles of the partnership Selection of a prime partner who contracts sub sub suppliers Philips is not the only supplier Long term mutual commitment Both parties have a shared ambition and vision with the partnership beyond the contract 1+1=3 The Managed Service (MES) part of the contract with its related obligations is well regulated in contract The Innovation partnership is more open and to be shaped together to transform healthcare Both parties invest Both parties bring values to the partnership Both parties are eager to create sustainable results 21
22 Advantages of the partnership One contractor taking overall responsability Access to state-of-the art techology solutions well balanced to the need of Karolinska based on functional requirements Transfer of risk SCC/Karolinska MES/Long-term functionality agreement Philips responsible for maintianing functionality over time and uptime Cost predictability over 14/20 years Dedicated site organization teaming up with Karolinska s org. Access to Industry know-how and R&D and Innovation capacity Philips establishes a global R&D and Innovation Hub in Stockholm Increase speed and implementation of innovations 22
23 Advantages of the partnership Long-term agreement Provides a platform for collaboration Enables to invest long-term True partnership spirit share the same vision Access to and collaboration with academic partners to Karolinska, e.g. KI, KTH, SU etc Philips can relocate R&D and innovation resources to innovate close to the care setting Close collaboration with clinicians and Principal Investigators Access to patients and those caring Philips Enables rapid prototyping and validation to secure relevance and and adherence to value based healthcare 23
24 Selection of equipment is based on functional/clinical requirements and technological bands Illustrative Functional requirements Equipment specifications ( what ) Market Analysis Selection of Equipment Technological bands ( how well ) Part of the dialogue Part of the selection process (performed after the deal) In the selection process, the guiding principle is that Philips will be regarded, and is expected to be treated as, any other potential equipment supplier ( Chinese Wall ) 24
25 Independence of procurement at NKS secured via Chinese Wall : construction confirmed by local Legal execution to be monitored Organization NKS Purchasing Organization Procurement Manager Technical consultant Procurement specialist 25
26 Dedicated Philips NKS Organization - Philips Organisation Global Advisory Team (GAT)** VP CRB Country Mgr Sweden Global Procurement Philips Site Organisation Site Director 1,0 Research Hub Director 1,0 Procurement Manager 1,0 Research Program Mgr Sr. Clinical Scientist Compliance & Regulatory Officer 1,0 1,0 0,5 Program Manager Academy Coordinator Project Controller Continous Improve. Mgr 1, ,2 0,2 Procurement Support 0,4 Nordic Supply Chain Mgr Academy Manager Nordic Finance Dir. Head of HTS Nordic Service & Quality Mgr 1,0 Operations Mgr Sweden Principal investigators Researchers Scientists Helpdesk Coordinator 1,5 Nordic Helpdesk Mgr Service Engineer 1,0 Service Engineer 1,0 Phsycists 0,2 1,0 = Nyckelpersoner heltid endast NKS 1,0 = Heltid eller deltid NKS = Chinese walls (agerar ristående från den ordinarie Philips organisationen) 26 ** = GAT: För mer information se Bilaga 3 Framgångsrikt partnerskap samt Bilaga 11 Styrning av egen organisation Confidential Philips Healthcare, 21 mars
27 The governance organization was set up after the deal was signed and is staffed by both Philips and Karolinska Partnership organization Executive Committe Strategic Level Tactical Level Steering group Philips Karolinska Contract Committee Equipment Committee Safety & Quality Committee Triple Helix Committee Instalation Committee Operational Level The partnership organization will supervise progress on all aspects of the contract 27
28 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 28
29 The innovation partnership between SLL/Karolinska and Philips Philips establishes a local research and innovation Hub with dedicated on-site resources that will bring researchers from industry, hospital and academia together. An open innovation infrastructure will be used to create innovation. Philips Hub will embed researchers and engineers at the hospital. Through the Hub Karolinska will have access to key people within Philips and with other relevant partners in Philips global network. The Hub will support the exchange of skills and training by integrating a training center within the Hub. Contributions Industry Contributions Health care Value Improved value of care and patient experience Value Contribution s Academia Philips is expected to perform and focus on innovation activities linked to Medical Imaging and act as a strategic partner to Karolinska in research, development and innovation. 29
30 Open Innovation and Philips Research Hub Innovation Partnership for Co-Creation in Open Innovation Setting Karolinska has a strong strategic fit with Philips: Karolinska shares our vision on transforming healthcare and has an outstanding reputation in the global clinical community Karolinska as a Philips research hub offers great value : Karolinska is a leading clinical outcomes research institution in the world (value based care delivery) Access to Karolinska University hospital and partners like KI, KTH, SU R&I hub enables rapid prototyping and innovations close to end-customer Philips Structure of the Innovation Partnership supporting Triple Helix 30
31 Content PPP Partnership What is it about Rationales - why was it done How was it done the process Core components of the Partnership MES - Managed Equipment Service PPP Innovation partnership Results so far 9 Confidential 31
32 Results so far show Innovation procurements is an important tool to reach long term objectives, create sustainable values and reduce costs Preparations Procurment phase Contract period Tradional procuemenrt Innovation procurement Cost for prestudy Cost for tender process Initial investment Yearly cost (OPEX) 1. Reducing the investment cost (CAPEX) ~x % 2Reducing yearly cost for service (OPEX) ~y % Total benefit over time 3. Monetary value adds > z MEuro 4. Other value adds 5. Knowledge to Karolinska and SLL 32
33 The innovation partnership so far... Vision of the innovation partnership: Our vision is a partnership where Philips, Stockholm county council and Karolinska transform healthcare and patient experience within prioritized focus areas through world class translational innovation and research. Winning aspiration of the innovation partnership: By 2020 we have together created healthcare innovations within 3 focus areas. We have together achieved significant impact on value of care and patient experience. Where to play Identifying focus areas Interviews and workshops Interviews >50 People Presentations of long-list areas Workshop on short-list areas Selected areas 33
34 Thank you! 9 Confidential 34
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