Shared Services Saskatchewan Health

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1 Shared Services Saskatchewan Health Taking Care of Business June

2 Project Goal Identify and leverage opportunities to drive business process improvement for key back office functions, including: Finance Human Resources (HR) Supply Chain Services (SC) Business Intelligence (BI) Under the auspices of the Council of CEO s and involving all 12 Regional Health Authorities and the Saskatchewan Cancer Agency

3 Back-Office IT Systems: Scope of Functionality Finance & Supply Chain Management Human Resources Finance Supply Chain In-Facility Replenishment Payroll Benefits Admin. Staff Scheduling General Ledger Accounts Payable Transact. Purchasing Warehouse and Logistics Mgt. Human Capital Mgt. Absence Mgt. Time Entry Accounts Receivable Electronic Data Interchange Inventory Mgt. Performance Appraisal Pension Admin. erequisitioning Compensation Mgt. Budget Mgt. Vendor Mgt. esourcing Laundry Mgt. Recruiting Automation Employee Self Service OH&S Incident Mgt. Case Costing Physician Preference Cards Contract Lifecycle Mgt. Staff Development Labour Relations Business Intelligence / Reporting / Spend Analysis Data Warehousing Master Data Mgt 3 Legend: Transactional Strategic Not in Scope

4 Back-Office Function Interdependencies Healthcare IT/IS Environment (Clinical and Support Functions) e.g. Accounts Payable Supply Chain e.g. Purchasing, Inventory, Requisitioning e.g. Surgical IS, Dietary Mgt. (not in scope) Finance e.g. GL, AR, Fixed Asset, Budgeting Business Intelligence Clinical Systems (not in scope) e.g. Payroll, Benefits Human Resources e.g. Human Capital, Perf. Eval., LR, Compensation, Education, Recruitment e.g. Patient Billing, Resident Mgt. (not in scope) e.g. Staff Scheduling, Resource Planning

5 Best Practice Summary Functional Areas Specific Tasks Examples HR 5 16 Payroll, Staff Scheduling. Recruitment Finance 6 20 GL, AR, AP, BI Supply Chain 5 20 Purchasing, Inventory and Logistics Management Business Intelligence 5 12 Reporting Tools, Data Management, Organizational Total

6 Organizations Best Practices Gap Analysis Average Best Practice Rating Best Practice Rating 3 Currently practiced 2 Currently practiced, But with limitations 1 Not practiced but intend to implement in 1-3 yrs 0 Not practiced, no intention to implement in 1-3 yrs 6

7 Back Office System Options Option 0a Option 0b Option 1 Option 2 Option 3 Option 4a Option 4b Option 5 Current System Configuration Current System Configuration and Planned Upgrades (In-flight) Upgrade and Enhance Existing Systems Partial Consolidation of Common Systems Leverage and Expand Upon Existing Enterprise Implement New System Business Specific (Separate Strategy for Finance, SC and HR) Implement New System - Enterprise Wide (Finance with SC, and HR Separate) Implement New System - Enterprise Wide (Finance, Supply Chain and HR) 7

8 Evaluation Criteria (Benefit-Cost Analysis) Functional Criteria : Achieving Best Practice and Realizing Benefits, including efficiencies, enhanced service levels and economies of scale Score 3 Fully supports Achieving Best Practice 2 Significantly supports 1 Somewhat supports 0 Doesn t support at all Deployment Criteria: Consider/assess associated costs and risks Grouped into three areas: Implementation Operations Alignment Score Functional Implementation 3 Highly favourable 2 Somewhat Favourable 1 Somewhat Unfavourable 0 Highly Unfavourable 8

9 Summary of Option Evaluation 9

10 Summary of Option Evaluation (cont d) Decision Tree: Green arrows represent estimated most likely choice, given current understanding of Shared Services direction. Ideal path may change depending on Shared Service modeling decisions. Assume cost and risk of building on existing platform Yes No No RFP Process Yes No Recommended Near Term Option Option 0a Option 0b Option 1 Option 3 Interdependencies with other back office functions = competitive process (i.e. RFP) Yes No Yes Selection process identifies feasible enterprise solution? Option 4 Option 5 10

11 Transforming Shared Services Shared Services Information Management Process Redesign Information Technology Enabling LEAN 11

12 BI SC FIN HR Recommended Shared Services Pathway Near Term Medium Term Longer-Term (1-3 years) (3-5 years) (5+ years) Shared Services and Lean Process Redesign Enabling Information Technology

13 Risk High Level Cost and Risk for Near and Medium Term Options 13 Cost

14 For more information, please contact Andrew Will, Founding CEO of 3S (Shared Services Saskatchewan) Health

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