vp quarterly report on strategies q3 february 2, 2016 robbie peters, vice president, financial...
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Multi-year Strategic Plans VP is Leading on: Financial Sustainability Strategy Multi-year Plan Facilities Strategy Multi-year PlanTRANSCRIPT
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VP Quarterly Report on Strategies
Q3– February 2, 2016
Robbie Peters, Vice President, Financial Services &
Chief Financial Officer
Vision: Healthy people, families and communities.
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Portfolio Overview
• Finance– Accounting & Financial Reporting– Payroll & Benefits– Decision Support
• Facilities Management
• Materials Management
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Multi-year Strategic Plans VP is Leading on:
• Financial Sustainability Strategy Multi-year Plan
• Facilities Strategy Multi-year Plan
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Financial SustainabilityProvincial Outcome
2015-2016
• By March 31, 2017, Ongoing, as part of a multi-year budget strategy, the health system will bend the cost curve by achieving a balanced or surplus budget.
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Financial SustainabilityProvincial Targets
2015-2016
• All health system partner organizations will be in a balanced or surplus year-end financial position in 2015-16.
• Shared services activities will produce $10M net new savings in 2015-16
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Financial Sustainability – RQHR Results as of Dec. 31, 2015
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• Increasing population and demographic changes resulting in growing demand for services • Estimated cost of $70 million last 4 years
• Reduced funding over last 5 years through efficiency targets in an effort to bend the provincial costs curve• In the range of $60 - $70 million
• Planned investments to respond to growing complex and changing environment • Physician leadership structure and service expansion• Sask. Healthcare Management System (lean structure)• 3sHealth shared service opportunities
• High levels of internal movement of staff causes increased overtime due to filling vacant lines at overtime rates and increased orientation time
• Occupancy is consistently higher than the 95% target resulting in increased staffing costs, much at overtime rates
Financial Deficit Root Causes
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• VP Accountability – monthly budget report outs
• Communication Strategy – shared responsibility and accountability
• Strategic priorities – Efficiency Target Initiatives (ETI) steering committee
• Long-term sustainability – 11 budget reduction initiatives
• Workforce Optimization Task Team (WOTT)
• Improvement work throughout the organization
Financial Sustainability Getting to Green
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Monthly Report OutsFinancial Visibility Wall – Coming Soon to an
Intranet Site Near You
2015-16 Financial Visibility Wall
Region Information at a Glance Deficit Mitigation StrategiesAs of December 31, 2015: Target Actual Projected Variance Initiative Lead VP Target Actual Projected
Surplus/Deficit $0 ($10,141,091) ($14,031,000) ($14,031,000) Procurement contracts Peters $2,500,000 $2,250,000 $2,800,000
FTEs 7904 7984 8014 (110) Surgical initiatives Garratt $8,000,000 $5,685,000 $8,000,000
Vacation Carryforward Hours 0 298,348 ?? VAC beds Redenbach $1,300,000 $1,200,000 $1,300,000
Appropriateness McCutcheon $1,000,000 $0 $0
Paid Hours Info as of Week 42: 2014-15 2015-16 % change fav/(unfav) Quality and safety Smadu $1,000,000 $800,000 $1,000,000
Total paid hours (target - decrease of 1.87%) 12,543,817 12,657,367 (0.91%) Patient flow Calder $1,000,000 $0 $0
Overtime (target - decrease of 33%) 293,332 265,089 9.63% ACSC Earnshaw $3,000,000 $569,000 $750,000
Sick (target- decrease of 15%) 542,774 530,966 2.18% Orientation reduction Cullen $1,300,000 $488,000 $650,000
Orientation (target - decrease of 20%) 183,677 164,557 10.41% Sick time reduction Cullen $2,500,000 $300,000 $400,000
Overtime reduction Peters $3,929,000 $965,000 $1,300,000
Portfolio Information at a Glance
Workforce optimization Cullen $12,740,000 $1,500,000 $2,000,000
Unanticipated revenues (WCB, Benefits) $0 $4,800,000 $6,000,000
Portfolio net variance statement Portfolio net variance chart Totals $38,269,000 $18,557,000 $24,200,000
(A) (B)
Portfolio FTEs Portfolio results reports Projected deficit (A-B) $14,069,000
Portfolio Vacation Carryforward Reports
Workforce Optimization TeamPortfolio Paid Hours
Key Service Metrics Task Team A3 WOTT Report Pre
sentation1D Newspaper Hemo Newspaper
6F Newspaper WO FTE SurveyService Volume and Operation Data
Communications
Employee / Physician Engagement Monthly Financial Update
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11 Initiatives Update
Initiative Lead VP Target Actual ProjectedProcurement contracts Peters $2,500,000 $2,250,000 $2,800,000Surgical initiatives Garratt $8,000,000 $5,685,000 $8,000,000VAC beds Redenbach $1,300,000 $1,200,000 $1,300,000Appropriateness McCutcheon $1,000,000 $0 $0Quality and safety Smadu $1,000,000 $800,000 $1,000,000Patient flow Calder $1,000,000 $0 $0ACSC Earnshaw $3,000,000 $569,000 $750,000Orientation reduction Cullen $1,300,000 $488,000 $650,000Sick time reduction Cullen $2,500,000 $300,000 $400,000Overtime reduction Peters $3,929,000 $965,000 $1,300,000
Workforce optimization Cullen $12,740,000 $1,500,000 $2,000,000
Unanticipated revenues (WCB, Benefits) $0 $4,800,000 $6,000,000
Totals $38,269,000 $18,557,000 $24,200,000
(A) (B)
Projected deficit (A-B) $14,069,000
Deficit Mitigation Strategies
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Financial Sustainability
Questions?
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Facilities Strategy Provincial Improvement Outcome
• By March 31, 2017, all infrastructures (IT, equipment & facilities) will integrate with Provincial strategic priorities, be delivered with a Provincial plan and adhere to Provincial strategic work.
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Facilities Strategy Provincial Improvement Targets
• By March 31, 2016, have delivered results on 3 high impact capital areas that address high risk for critical failure using alternative funding/delivery options.
• By March 31, 2016, common criteria and options for investing are used to vet all capital investments.
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• Significant facility infrastructure deficiencies identified across the province requiring significant sustained investment
• RQHR Facility condition assessment– Average FCI 31.5% on assessed asset value of $1.6
billion– FCI > 15% is considered deficient for health care
• Minimal annual funding to address deficiencies and no multi-year funding commitments
• Maintenance and Repair– Estimated Required funding $50.2/ year– Actual funding $5.2m/ year
• Capital Renewal– Estimated required funding $23.8/year– Actual funding received $0 but ad hoc
Facilities Strategy RQHR Challenges
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– Infrastructure is our Board of Directors # 1 advocacy priority
– Electrical renewal – RGH and PH
– Energy projects – PH and WRC
– Long term care planning (Pioneer Village / Grenfell risk and contingency planning)
– Real estate initiatives
– Space management – space advisory committee
– Infrastructure committee expanding – capital planning
Facilities Management Updates
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Facilities Strategy
Questions?