1. Portfolio/Number/Name:H/C2 NHS Support Service Reform |
2. Programme/Activity: Please
include a short description Shared Support Services for NHS
Financial Processing & Reporting and
NHS Payroll Services. Model is based around
a virtual model with two Hubs (Finance and
Payroll) and twelve Spokes. Shared Support
Services is an organisational design
involving the standardisation and
consolidation of dispersed common
activities whilst harnessing available
technology. |
3. Planned Savings | | 2005-06 | 2006-07 | 2007-08 |
Cash (m) | 0 | 0 | 10 |
Time Releasing (m) | 0 | 0 | 0 |
4. Accountable Officer for
delivery | Kevin Woods |
5. Project Manager | Peter Collings |
6. EGDG account manager | Gillian Woolman |
7. Quality Impact | Describe any impact on the quality
of service delivery. Be specific and
explain if the expectation is positive,
negative or neutral. The quality of the service will improve
despite the reduced cost of running this
model of delivery. Advances in technology
are to be harnessed as part of the
anticipated positive improvements. |
8. Dependencies | Explain if your savings are
dependant on legislation or other
structural changes being achieved. Dependant on major structural changes
within the finance community in terms of
technology utilised, ways of working and
major reduction in staff numbers. |
9. Description of efficiency and
actions to be taken | 9.1 How will the saving be made? Be
specific about number/size of contracts, staff,
posts dates etc. Savings are primarily centred around a
reduction in staff numbers (604 WTEs).
Savings are also anticipated in relation to
a common system. A phased implementation is
expected to commence in April 2006. Capital costs of the project are
estimated at 13.789m, and associated
project revenue costs are 12.359m. Once
completed, the overall revenue savings to
NHSScotland is 10.122m on a recurring
basis. |
9.2 What action is critically needed to
secure delivery of this saving? Be specific,
and name the key action managers if they are
outwith your immediate management chain (e.g.
in an NDPB.) Delivery is dependant on individual
NHSScotland cooperation. It is also
imperative that the necessary IT
infrastructure is in place to accommodate
the process at a local level. The project
is being managed by NHS National Services
Scotland with the Chief Executive as the
Accountable Officer. |
10. Impact on Staffing to achieve the efficiency
gain | If there are to be any changes in
staff numbers (at activity level) to
achieve the efficiency gain, please
indicate how many full time equivalents and
how far you expect savings to be achieved
by natural wastage (show additions as + and
reductions as -). |
| 2005- 06 | 2006- 07 | 2007- 08 |
+ | | | |
- | | | -604 |
Net | | | -604 |
Explanation | Release of established posts at 23
NHSScotland bodies. No compulsory
redundancies, all achieved via redeployment
& early retirements for example. |
11. Benefits | In general, the benefits of the
Scottish Executive Efficiency Plan are the
enhanced outputs from the resources
Ministers have been able to allocate in
SR04. But if there is a direct connection
between this efficiency saving and the
enhancement of a particular service please
describe it here. This project aims to make efficiency
savings within NHSScotland, whilst at the
same time making a general improvement in
the quality of financial/management
information. |
12. Gross/Net Cash Savings | 12.1 Please set out the gross recurring
saving and any offsetting recurring
expenditure. Gross Recurrent Savings 17.15m Running Costs 7.03m Net Recurrent Saving 10.12m This is the anticipated full year
saving from fiscal year 2007-08. |
12.2 Against what budget does this saving
fall? Budget savings are administrative,
falling against Non-Clinical Service
Costs. |
12.3 Has this saving been built into your
budget? These savings are built into existing
budgets. It is expected that these savings
will be released to frontline
services. |
12.4 If so, what is the maximum allowable
expenditure against the budget data, in each
year, for that saving to be
delivered? NHSScotland Health Boards are expected
to remain within their Revenue Resource
Limit (RRL). This is part of a broader,
overall expectation. |
12.5 If not, how do you propose to invest
the additional cash back into public
services? N/A |
12.6 What plans do you have to exceed the
required saving? Explain by how much in each
year? There are no plans to exceed the
required saving. |
13. Time - release savings | 13.1 Please explain any time-releasing
savings indicated at question 3. N/A |
13.2 Please describe the method you
plan to use to calculate the cash
equivalent of those time release
savings. N/A |
14. Measurement and
Monitoring | 14.1 How are you proposing to measure the
expected efficiency benefits (e.g. in terms of
costs, level of output or quality of
service)? Expected efficiency benefits will be
measured in financial terms. In addition,
benchmarking exercises will be conducted to
ensure the range of benefits anticipated is
being achieved in terms of quality and
quantity expectations (which will be
detailed in the Full Business Case in due
course). |
14.2 What monitoring & reporting
procedures will be put in place to measure the
efficiency savings (How often will progress
towards the target be monitored? Monitoring and reporting arrangements
will be agreed as the project evolves.
Individual organisations will be considered
during the implementation stage and
compared to original expectations. As part
of the business case process, a post
project evaluation will also be
completed. Who will have lead responsibility
for reporting progress and what procedures
will be in place?) The project team will be responsible
for information relating to savings and
quality improvements and submitting this to
the Health Department quarterly. |
14.3 Monitoring Data: Sources, validation
and risks - What data will be used to
measure progress? Is all the required
information quantifiable and readily
available? If not what action willl be
taken to rectify this?
- What measures will be in palce
to validate the accuracy of the data?
Who will take responsibility for this?
- Are there any issues or risks
relating to how you plan to use the
data? (eg accuracy, difficulties in
collection).
Financial and HR information
will be utilised for measuring
performance. This will be initiated by
the project team. NHSScotland Health
Boards will independently provide
information on the impact of the
project and the validity of
information. Details of finalised
savings will be detailed as part of the
Full Business Case. Full sign up of
CEOs to the project releases a
conservative 10m per annum recurring
saving from 2007-08.
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