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Efficient Government Fund EGF)1)1)29 NHS Facilities Management Performance Management

DescriptionTo develop a universal performance management system for key support services.
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Official Print Publication Date
Website Publication DateJanuary 23, 2006

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EFFICIENT GOVERNMENT FUND

Stage 1 application - expression of interest for introduction of a Facilities Management System (FMS) in NHSScotlandexpression of interest for introduction of a Facilities Management System (FMS) in NHSScotland

Part 1: Summary Table

Bid number (for EG use)

Lead bidder

NHSScotland Property & Environment Forum, 4 th Floor, Empire House, 131 West Nile Street, Glasgow G1 2RX.

Contact: Mr Paul Kingsmore, Chief Executive

Brief description of the aims of the project

The proposed FMS is a universal performance management system for key support services such as catering, cleaning, portering, transport, sterile services, laundry, IM&T, telecommunications etc. This will provide NHSScotland with a common system of monitoring, managing information and control conducive to on-going service efficiency, effectiveness and value for money.

Clear description of what the EGF money would be used to buy

An IT solution which involves the deployment of a software vehicle to facilitate the process of information management from a wide range of individual systems and cost centres.

Software development, national roll out, training and support of the system. In addition, the IT solution will include a quality control system.

Partners to the project likely to commit resources

  1. 15 NHS Boards
  2. Scottish Executive Health Department
  3. Glasgow Caledonian University
  4. Information and Statistics Division (ISD) of National Services Scotland (NHS NSS)
  5. Scottish Healthcare Supplies

Names of other organisations with whom the project has been discussed (to assist the introductions process)

  1. NHSScotland Special Health Boards
  2. Joint Premises Project Board (local authorities and NHSScotland)

Evidence that suggested approach has been deployed successfully elsewhere

There are no systems which replicate precisely this proposal by NHSScotland Property and Environment Forum. However, the following are examples of two systems that have been successfully adopted in predominantly private sector healthcare environments:

ELECTRA… a hospital management system using electronic document management for procedures such as patient registration, bed management, dietary, laundry and equipment maintenance.

CAFM used by ISS Mediclean… a system which supports and monitors telephonic communication.

United States Postal Service has a hard Facilities Management System which contains all relevant facilities information for the postal services' assets. However, none of these systems adequately address the requirements of NHSScotland which has an annual revenue expenditure of £500m.

Are there any restrictions to potential for enlargement of the project (i.e. technology, number of partners etc)

No

Benefits projected from the project

The key benefit of FMS is as a universal management system which includes a performance focus, quality measures and facilitates evidence-based efficiency, effectiveness and value for money. Key deliverables are improved:

  • National benchmarking, sharing best practice, increased accountability and optimum use of resources.
  • Provision of ISD 'Blue Book' data.
  • Management of outsourced FM (PFI contracts).
  • Balancing capacity with demand.
  • Potential to reduce revenue expenditure and contribute to the Board's financial management system.

The FMS has the potential to be extended to the wider public sector in accordance with the Scottish Executive 'Joint Futures' agenda.

Estimated financial projections

Total

2005/6

2006/7

2007/8

2008/9

2009/10

Overall project cost

£4m

£1m

£1.5m

£1.5m

Estimated projected benefits

£4m

£0.1m

£0.4m

£0.8m

£1.2m

£1.5m

From the first three years of the project being funded it is anticipated that £1.3m of efficiencies will have been identified with a further £1.2m and £1.5m being identified in the following two years. On completion of the pilot project in NHS Tayside a more robust and accurate financial model can be prepared.

Is a pilot required - see guidance notes

No. The requirement for an FMS is well proved. An NHSScotland pilot is being conducted in Tayside funded by the Scottish Executive Health Department. There has also been a laundry and linen study that has recently been completed. In addition, there are ten benchmarking sub groups operating for each of the soft FM areas.

Additionally: why is EG funding required

EG funding is required to:

  • Assist with the process of financial management
  • Ensure cross public sector application
  • Better informs business case and public sector comparator development
  • Manage information for a range of key support services, which is currently limited, unconnected and retrospective
  • Improve understanding of capacity or productivity which will help inform decisions regarding joint working with other public sector bodies
  • Widen the scope for true performance management and development
  • Change the focus from being process-dominated to outcome orientated
  • Reduce the current inefficiency in the use of resources for facilities management

Is this project complementary in any way to other EG work

Yes, there is a relationship to another bid being submitted. This is a proposed Strategic Planning System which the FMS has a natural alignment with. With reference to the Scottish Executive document entitled; 'Building a Better Scotland' this project will complement the overall target saving of £166m per annum.

Is "stage 2 development funding" requested?

Yes, to complement the development work being undertaken by NHS Tayside funded by the Scottish Executive Health Department. The sum of £50k is requested to cover the costs of:

  • Formalising the embryo benchmarking groups
  • Conduct a scoping exercise to establish the potential application of FMS within local authorities in Scotland
  • Conduct a scoping exercise to ascertain the potential market for FMS within the private healthcare sector in the UK and beyond

and better informing the details of the stage 2 bid.

Page updated: Friday, July 8, 2005