Robert Lagaida November 2007 Shared Services Update

Baseline Objectives from Respective Business Cases Shared Corporate Services Savings are derived from procurement and reduction in FTEs Savings to be re-invested to frontline clinical services Linen Services Savings are derived from rationalisation and management as a single statewide business unit Savings to be initially re-invested to meet standards and business sustainability through equipment replacement

Baseline Objectives from Respective Business Cases (continued..) Food Services Savings are derived from rationalisation and management as a single statewide business unit Savings to be initially re-invested to meet food services standards

Current Position Shared Corporate Services Service Lines Service Centres Parramatta and Newcastle established Corporate Services have been transitioned to Health Support Service Centre on a progressive basis to April 2009, based on the following 4 service lines: - finance - procurement - warehousing and logistics - payroll - employee and recruitment services

Current Position Single Install Interim statebuild FMIS Operational New hardware environment set up and operational for payroll services Oracle HRIS Project commissioned to replace the current Supero system, with 2 initial modules - employee services - payroll services Statewide review of warehousing and logistics completed

Shared Corporate Services (continued..) Standard Business Practices Achieved Standard Chart of Accounts operational Best Practice Procure to Pay Processing developed Best Practice Operational Purchasing developed

Shared Corporate Services (continued..) Shared Business Practice Models developed for: - finance - purchasing - payroll services - employee services - recruitment services

Shared Corporate Services (continued..) Unique Employee Identifier developed Standard Payroll Cycle developed Standard Catalogue (Health Item Master File) Customer Relationship Management System Currently Underway Detailed process documentation HealthSupport Purchase Order Streamlining of Corporate Forms Record Archiving Procedures

Linen Services Fully transitioned and operational from December 2006 Already achieved - Closure of Cessnock Linen Service - Closure of Penrith Linen Distribution Centre - Statewide tender for linen stock - Reallocation of equipment within Linen Business Unit - 3 year Pricing and Capital Replacement Strategy developed

Linen Services (continued..) Currently Underway - Progressive introduction of linen management system to better managed linen supply - Restructuring of linen service management - Further rationalisation of linen services and distribution

Food Services Already achieved Due diligence for food services within Northern Cluster (NSCCAHSD), HNEAHS and NCAHS) completed and statewide food production units completed Statewide Food Services Framework developed Co-management of food services between HealthSupport and Northern Cluster Food Services Advisory Committee established Food Procurement Savings with some success

Food Services (continued..) Currently underway Review of food production units Process to delineate the roles of Clinical dietitians, Food Service dietitians and Food Aids Establishment of Food Business Units within Area Health Services, prior to transition, to HealthSupport

Related Shared Business Strategies - Procurement Procurement is a key and large component of savings Health Item Master File - developed and operational in Service Centre Parramatta - ongoing refinement and expansion as each Area Health Service migrates to Service Centres

Related Shared Business Strategies – Procurement (continued..) - facilitates NSW Health as a single buying organisation through * rationalisation of preferred vendors for the same items * provision of strategic sourcing data

Key Future Issues Effective Change Management by both HealthSupport and Health Services in terms of - business services - impact on staff Client Health Services’ “buy in” to achieve effective partnership between HealthSupport and Health Services Transparent pricing policy for services provided by HealthSupport, consistent with Benefits Realisation Strategies Management of risks associated with legacy systems (eg Supero payroll system) and the development of new system(s) (eg Oracle HRIS) Accommodation and staff recruitment