Download NZ Health Strategy 2016

Enabling Transformational
Change in Health using
Oracle eBusiness Suite
Presented by: Angela Morley
Director Supply Chain, Waikato District Health Board
Joint Business Solution Lead, NOS Programme
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Presenter: Angela Morley
Director Supply Chain for
Waikato District Health Board
Joint Business Solution Lead for
the 20 DHBs Oracle project.
Program Manager 7 years
transforming Supply Chain.
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Waikato DHB
Employs or Contracts 6,500+ people
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A tertiary hospital
Secondary hospital
Three rural hospitals
Wide range of community-based and health promotion
services.
Tertiary services to a population of more than
846,600
• Includes neurosurgery and other highly complex surgery,
specialised medical procedures and specialist trauma
services
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NZ Health Strategy 2016
The cost of
providing health
services through
the current model
is unsustainable in
the long term
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Health Landscape
In 2014, 90% of New Zealanders reported they are in good, very good or
excellent health, the highest percentage reported by any OECD country.
For those aged over 75 years, the figure is 87%.
Our health system supports:
12.6 million GP visits
2.8 million practice nurse visit
Dispensing 65 million pharmaceutical items
24 million laboratory tests
1 million emergency department visits per year
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Health Landscape
Main Concerns:
Unsustainable in the long term
• Treasury 7% of GDP now, to about 11% of GDP in 2060.
Need new and sustainable ways to deliver services & investing resources
• That will provide the best outcomes possible for people’s health and wider wellbeing.
• A much more systematic, scaled and long-term approach–Primary health organisation
Systematic, Scaled & Long Term Approach
• To implementing key systems and cultural changes… will influence clinician and patient
behaviours and choices towards a more sustainable and equitable health system.’
The cost of providing health services through the current model is unsustainable in the long term. The Treasury estimates that, if
nothing were to change in the way we fund and deliver services, government health spending would rise from about 7% of GDP now,
to about 11% of GDP in 2060. It is essential that we find new and sustainable ways to deliver services, investing resources in a way
that will provide the best outcomes possible for people’s health and wider wellbeing.
‘… a much more systematic, scaled and long-term approach to implementing key systems and cultural changes… will influence
clinician and patient behaviours and choices towards a more sustainable and equitable health system.’
–Primary health organisation
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NZ Health Strategy 2016
People-Powered
Smart System
One team
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All New
Zealanders
Live Well
Stay Well
Get Well
Closer to Home
Value and high
performance
NZ Health Strategy 2016 (continued…)
“Our system needs to become a learning
system, by seeking improvements and
innovations, monitoring and evaluating
what we are doing, and sharing and
standardising better ways of doing
things when this is appropriate. Key
tools to help make this shift to a learning
system are data and technology.”
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District Health Boards
Have a critical role
in ensuring all New
Zealanders live
well, stay well and
get well
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District Health Boards (DHBs)
DHBs are significant businesses
$11 Billion Per Year Spend
• Of taxpayers money
Employing over 60,000 New Zealanders
Did you know?
Every day, tens of thousands of people are involved in some way
with the New Zealand health system – as health professionals,
service providers or members of the public
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DHB Budgets
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DHB Staff Numbers
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What DHBs do
DHBs Health Service Responsibilities
Providing, funding or provision services
Account for day-to-day business system
Administer three-quarters of funding
Plan, manage, provide and purchase services
Did you know?
In the 12 months to 30 June 2015,
there were 1,090,700 visits to emergency departments
around the country
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Key Influences
DHBs do not work in isolation
Wide Range of Groups
• advocacy and consumer groups
• health care provider
• health professional groups,
• non-governmental
• voluntary groups
Work alongside other Crown entities
• To deliver health services to their community
Influence of PHARMAC
• In procurement activities
Key Fact
“The Government tasked PHARMAC to begin managing hospital
medical devices on behalf of DHBs in 2012. The expectation is that the
PHARMAC model will achieve value for money and allow people
around the country to have equitable access to treatments wherever
they live.”
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Oracle eBusiness in Health
12 of the 20 DHBs
currently use Oracle
eBusiness to support
Finance, Procurement
and Supply Chain
activities
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Why Oracle eBusiness?
12 DHBs currently use Oracle eBusiness suite
• Support Finance, Procurement and Supply Chain activities
6 DHBs on R12.1
6 DHBs Remain on R11.5
8 DHBs use JD Edwards or non tier 1 ERP systems
Desired goal is a single Oracle platform to support all 20 DHBs
and associated entities (45+)
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Desired Goal
Single Oracle platform to
support all 20 DHBs and
associated entities (45+)
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Background
Planned to deliver a common Oracle eBusiness
system
• The Finance, Procurement and Supply Chain (FPSC) programme, led
by HBL, was to deliver centralised finance and procurement, and
more efficient supply chains for DHBs.
By 31 March 2015, $80M was spent and Project was
off track
• Decision was made to continue with change in scope
A revised budget of $120M was agreed
• NZ Health Partnerships along with DHBs were put in charge
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Governance
Steering Group chaired by DHB CE with CFOs as key
members
Business Owners
• Led and chaired by CFOs
Design Authority
• Led and chaired by Dr M Milner
Programme – core management team
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Peter Small (ex hA), Programme Manager
Alin Ungureanu, Technology Lead
Angela Morley (WKDHB), Joint Business Solution Lead
Lynne O’Donoghue (CDHB), Joint Business Solution Lead
DHBs are leading the way
Key roles are held by DHB people
Project resource primarily from DHBs
Supporting the health strategy principles
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One Team
People Powered
Closer to Home
Smart System
Value and High Performance
Technical Overview
• Oracle eBusiness Suite
(R12.2.5)
• Oracle Business
Intelligence (12.2)
• Oracle Fusion
Middleware (12c)
• Delivered from Oracle
Exadata / Exalogic
engineered systems
Business Overview
One system, one ledger, one catalogue,
multiple entities
Single Ledger
DHB1
DHB2
DHB3
Single Catalogue
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Trust
X Ltd
Reporting
FPSC Oracle
DHB Oracle Solution Scope
Scanners (SOA)
Feeder Systems (SOA)
UPK &
Promapp
Contract
Repository
Supplier
Lifecycle
Mgmt
Sourcing
Integration
Archive
Supplier - GS1 (SOA)
BI Apps
(Procurement
Wayfinder
Services
Procurement
iProcurem
ent
iSupplier
(Retentions)
Purchasing
Product
Hub
Catalogue
Order
Mgmt
Payables
Preference
Lists
(BOM)
BI Apps
(Finance,
Project &
Asset, Supply
Chain)
BI Apps
(KPI &
Benefits)
Cherwell/OAT
Key
EAM
(Waikato
funded)
Finance
Fixed Assets
Supply
General
Ledger
Payments
Work in
Process
Decision
Support)
Projects
Inventory
Mgmt
Supplier – EDI (SOA)
Hyperion
Receivables
Cash Mgmt
Other
Future
Advanced
Collections
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People & Process
Decentralised
• virtual people and process model
Over 1,000 business processes
Core team to support the solution
Accreditation to “perform” common activities
Major change initiative for all DHBs
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NOS Activities - Definitions
Global
Common
Local
• Activities performed once nationally
• Set-up activities needing special expertise
• Deliver by a single group nationally
• Single organisation focus but national impact
• Conform to national standards eg suppliers
• Delivered by accredited DHB/hA staff
• Activities impact only one organisation
• Best performed close to the business
• Deliver by DHB for DHB, or shared service
LOCAL
COMMON
GLOBAL
MASTER DATA
STANDARDS,
GOVERNANCE,
& NATIONAL
SOLUTION
CONTROLS
FRAMEWORK
National Controls Framework
• Functional and data security rules
• User, supplier and bank account auditing
• DFAs – Rev, Reqs, PO, AP Inv, Capex
• Journal approval rules
• Invoice holds and release workflow rules
• Tolerances PO match, PO change, etc
• Doubtful Debt provision percentages
• Collection Strategies
• Capital Purchases through projects
National
controls
configured in
the solution
need to
include in
local DHB
policies
Interested Stakeholders
Patients
• Ensure the right product is in the right place at the right
time
DHBs as an enabler
• Of benefits to support priority initiatives
PHARMAC
• To support national procurement of medical devices
Suppliers
• To reduce end to end Supply Chain risk and cost of supply
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Waikato DHB as an example (10% of sector)
2008 - ranked as having the worst DHB supply
chain
2016 - leading the sector in supply chain
efficiency and innovation
Decision was made to invest in Oracle
eBusiness to support Supply Chain
• Wayfinder (clinical focused portal)
• Full Consignment tracking with RFID interface
• eAM to manage assets
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Wayfinder
• Catalogue of over 32,000 unique Items that can be
ordered by 500+ locations
• Clinical portal developed in APEX to allow clinical staff to
manage and order clinical bills of material
• 1,249 BOM procedure masters with multiple variations
taking into account surgeon preference.
• Approximately 2,000 BOMs are picked per month with a
value of $1M (value excludes consignment – implants
etc)
• Can now track by patient and surgeon all consumables
and consignment stock required and used in clinical
procedures
• Supports elective and acute procedures
• Included in national scope so all DHBs can use
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Wayfinder Items / Bill Of Materials
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Wayfinder – Item Details
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Wayfinder – Procedure Summary
• C
Clinical staff love Wayfinder so
it is available 24 x 7
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Consignment Stock
• $9.8m worth of consignment stock at WKDHB. $8.1m relates
directly to Theatre. Top three specialities are:
– $7m to Orthopaedics
– $790k to Cardiac
– $145k to Plastics
• 6,458 unique consignment stock lines with a volume of 24,555
individual items consumed. 5466 unique consignment stock
lines relate to Theatre, 23,123 total volume of items.
– Orthopaedics – 4,873 unique stock lines and a volume of 21,246 items
– Plastics – 237 unique stock lines and a volume of 1,283 items
– Cardiac – 169 unique stock lines and a volume of 289 items
• Integration with Magellan RFID solution to scan RFID tagged
consignment stock.
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Consignment Stock Benefits
Was totally manual
Now a transparent end to end solution
• Using standard Oracle functionality
Consumption advices sent to suppliers on use
Purchase orders sent to suppliers based on min/max
Full inventory control – easy to track usage
Consignment stock holding Increased
• By $1.5m in the past 12 months with
• No increase in FTE required to manage
Significant reduction in FTE required to manage RFID
• tagged stock that is now scanned
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Enterprise Asset Management (eAM)
First DHB to implement Oracle eAM to manage
asset maintenance
Significant benefits delivered from
standardisation
Improved user experience – portal logging
with visibility of status
Included in national scope so any DHB can
implement
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Questions?
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Thank you!
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