1. Portfolio/Number/Name:H/C2 NHS Support Service Reform |
2. Programme/Activity: 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. Full sign up of CEOs to the project releases a conservative £10m per annum recurring saving from 2007/08. |
3. Efficiency | 3.1 Current target; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0 | 0 | 10.0 |
Time | 0 | 0 | 0 |
3.2 Efficiencies delivered; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0 | - | - |
Time | 0 | - | - |
4. Accountable Officer for delivery | Kevin Woods |
5. Project Manager | Alex Smith |
6. EGDD Portfolio Manager | Rowena Simpson |
7. Description of efficiency and actions to be taken | 7.1 What is the efficiency improvement? How will the efficiencies be made? 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 originally planned for April 2006 is now expected to commence in October 2006 (Wave 1 migration). Once completed, the net overall revenue savings to NHSScotland is £10.122m on a recurring basis. |
7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement? 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. |
8. Associated costs | 8.1 Are there any development or redundancy costs associated with the delivery of this efficiency? The project investment costs contained within the approved Outline Business Case ( OBC) are: £13.789m Capital & £12.359m Revenue giving a total investment of £26.148m. The 604 establishment posts are to be released from 23 NHS Scotland bodies with no compulsory redundancies; it is to be achieved through redeployment and early retirement arrangements, for example. The net overall revenue savings to NHSScotland is £10.122m on a recurring basis commencing 2007-08: Gross Recurrent Savings £17.15m
Running Costs (Shared Services) £ 7.03m
Net Recurrent Saving £10.12m |
9. Measurement | 9.1 What are the inputs that will be measured? The support service costs, which are classified as Non-Clinical Service Costs in NHS Boards, will be measured |
9.2 What are the outputs that will be measured? 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). |
9.3 What is the baseline for inputs and outputs? The baseline for inputs is the costs of those services in each NHS Board in 2004/05. In respect of outputs, 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. |
10. Quality cross-check | 10.1 What quality indicators are being used to ensure that quality of service is maintained or improved? 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). 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. 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. |
11. Monitoring | 11.1 What are the arrangements for monitoring the delivery of efficiencies? Monitoring 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. |
12. Reporting | 12.1 What are the arrangements for reporting the delivery of efficiencies? The project team will be responsible for information relating to savings and quality improvements and submitting this to the Health Department quarterly. |
13. Dependencies | 13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved. The savings are dependent on major structural changes within the NHS finance community in terms of technology utilised, ways of working and major reduction in staff numbers. |
14. Use of efficiencies | 14.1 How are the efficiencies released from improvement activity being used to improve front-line services? Funding allocations from SEHD to NHS Boards (Revenue Resource Limits) did not assume these efficiency savings. The cash releasing efficiency savings will be retained by NHS Boards and used for reinvestment in frontline services. |