NHS Shared Business Services An Overview for the Pharmaceuticals - - PowerPoint PPT Presentation

NHS Shared Business Services An Overview for the Pharmaceuticals & Medical Devices Credit Forum

16th February 2017 Beth Loudon Head of Supplier Engagement beth.loudon@nhs.net 07764 324807

Overview of NHS SBS –clients, services and locations NHS landscape changes Development of a Source 2 Settle Strategy Development of a Supplier Engagement Strategy How to contact us/find out more

Agenda

Department of Health & Sopra Steria

A unique joint venture

• Original shared service centres
• NHS experienced people
• Financial Support
• Oracle EWA
• Unique 50:50 joint venture
• Commercial organisation
• Joint governance
• Customer focus
• Best practice
• World class
• Management & Business Development
• Service optimisation
• Best practice
• Offshore capability
• Commercial expertise

Together we have delivered audited savings

• f over

£350m to the NHS

Scope of our services

• 100% of all Commissioning organisations
• 70 NHS Provider organisations
• Over £170 billion of payments each year
• One of the largest Oracle Shared Service Centre

platforms in the world

• Over 60,000 active Oracle users across Provider

and ISFE

• 131 NHS clients
• Paying 390,000 NHS employees
• Processing 3.6 million payroll transactions each

year

• Administering 250,000 pensions
• Delivering registration authority services to over

5,800 employees

• Recruitment Services launched in 2013

Procurement

• Provider of over 100 framework agreements to the

NHS and Public Sector

• 1,200 suppliers covering over 2m catalogue items

with approximately £5bn transacted annually

• Delivered £350m in Procurement savings
• pportunities
• 57 NHS clients
• 621 associate members

Employment Services Finance and Accounting

Integrated Delivery UK & India

• Finance & Accounting
• Purchase to Pay
• Order to Cash
• Account to Report

Procurement Employment Services

• Claims processing
• Recruitment

Information Technology

• Service desk
• Maintenance & support
• Application development

Our teams – UK & India

F&A Scope of Service

Accounts Payable

 Customer Support Desk  Invoice Scanning  eInvoicing  Invoice PO Matching  Passive Approval of Low Value Invoices  Duplicate Invoice Checking  Non-PO Invoice Processing  Invoice Payment  Invoice Processing  Post room Services

Accounts Receivable

 Validation of New Customer Accounts  Identify Credit write-

• ff Reasons

 Query Resolution  Debt Management  Cheque Banking  Customer Payment Processing  Production of Sales Invoice & despatch  Setting up New Receivable Items

Cash Management

 Monthly Bank Control Account Reconciliation Pack  Year-end Cash Balances  Control Petty Cash  Coordinate Movement of SLA Payments  Cash-flow Forecasts  Make Non Purchase Ledger Payments  Daily Bank Reconciliations

Financial Accounting

 Year-end Workshops  Advise of Non- receipt of Interface Files  Balance Sheet  Accruals  Journals  Monthly Client Calls  Chart of Accounts Maintenance  Sub-Ledge Close  Accounting Timetable  Period End Close

VAT Services

 Compliance with HMRC Regulations  Maintenance of Client VAT data  Front-line Support for Client Health Economy Organisations  Additional VAT Consultancy Service (additional charge)  Production of monthly VAT returns

F&A Services

NHS SBS Procurement Services

Acute Trusts MH Trusts Community Trusts CCGs CSUs NHS England ALBS Wider Public Sector

Operational Procurement

     

Provision of Framework Agreements

       

Integrated Procurement Partnering

 

Strategic Sourcing Services

    

Project Support

      

a) Develop PTP plans, nominate a Director b) Providing pricing information for the price purchasing index c) Prioritise role of procurement on ensuring effective control and compliance (includes GS1 adoption) d) 80% spend on catalogue, 90% on PO, 90% on contract – by Sept 17 e) Accelerate collaboration f) Adoption of NHS Standards of Procurement

Driving process improvements for our clients - The Lord Carter Report Recommendations 5 & 7

a) Test existing services against shared services b) Submit plan to NHS Improvement if costs are above this for HR, Finance, IM&T and Procurement

7 - “All Trusts should rationalise their corporate and administration functions to ensure their costs do not exceed 7% of their income by April 2018 and 6% of their income by 2020 (or have plans in place for shared service consolidation with, or outsourcing to, other providers by January 2017) so that resources are used in a cost effective manner.” 5 – “All Trusts report their procurement information monthly to NHS Improvement to create a NHS Purchasing Price Index commencing April 2016, collaborate with other trusts and NHS Supply Chain with immediate effect, and commit to the Department of Health’s NHS Procurement Transformation Programme (PTP), so that there is an increase in transparency and a reduction of at least 10% in non-pay costs is delivered across the NHS by April 2018”

Challenges for the NHS in meeting new Targets

• Finance and Procurement

systems and policies have evolved in a fragmented way

• No capital or revenue for

investment in systems

• A complex NHS digital roadmap –

single trust vs STP

• Lack of implementation resource

for any system changes

• Limited spend data for single
• rganisations and alliances/STPs

etc.

• Increasing demand from NHSI to

evidence how savings will be made

NHS Trusts

• Increasing pressure to deliver

cash savings for the NHS

• No single NHS marketplace
• Increasing costs to service the

NHS

• A complex mix of stakeholders –

users, procurement, finance

• No easy way to introduce

innovation into the NHS

• Poor payment record and getting

worse!

• No visibility on invoices and

payments

• Multiple ways for a customer to
• rder

NHS Suppliers

Delivered by:

• Providing a modern and transparent Source 2 Settle system through effective

technology partnership

• Closing the loop – creating control and compliance by catalogue within a closed

system

• Designing and implementing products and services that make it easy for NHS

purchasers to do the right thing

• Recognising and removing barriers and costs for NHS suppliers to trade with the

NHS

• Providing resource to support change management and development of strong

governance and controls

• Proactive alignment to NHS eProcurement policy and NHSI targets and

measures

How NHS SBS plans to meet the challenge – The Source 2 Settle vision

“To deliver cash savings and back office efficiencies to the NHS through a continuously improving NHS Shared source to settle solution which is free to access and use for the NHS, provides tangible value to NHS suppliers and meets the policy requirements of DH and NHSI”

Finance Procurement

Plan Source Pay Buy

“Sometimes referred to as the “req-to-check” process, it includes initial requisitioning and approvals, sourcing, procurement, spend analysis, receiving, payment settlement, management of accounts payable, and general ledger accounts.”

What do we mean by Source 2 Settle?

• Provide the full range of

PIM to Pay requirements

• Disruptive and agile

technology providers

• Experience and

knowledge of the NHS market

VirtualStock

• Voice of suppliers

to shape the service and systems

• System clients –

value needs to be real and undisputed

NHS Suppliers

• Voice of NHS to

shape the service and system

• Influence suppliers

to adopt

NHS

NHS SBS

10 years experience Experts delivering P2P NHS Infrastructure Established NHS clients Shared service experts

Our Source 2 Settle Proposed Partnership Map

Delivering an Online Marketplace A new modern e-commerce marketplace that will change the way procurement teams buy NHS products to help transform relevant back office functions to deliver cost savings and efficiencies.

Key Features

End to End (PIM to Pay) Order Management Amazon style procurement Catalogue Management Enterprise PIM E-Invoicing Track and Trace Real Time Reporting

Supplier Benefits

Faster Sales

Reach more NHS trusts easily A richer user experience - display products with images, attributes, descriptions, case studies, clinical evidence etc. Showcase products and innovations across the NHS Easy product and special offer promotion Immediate online negotiation functionality - agree pricing tailored to client needs

Faster Payment

Live pricing approval to prevent errors and invoice disputes Auto PO raising for easier invoice matching and immediate authorisation Manage/reduce debt and improve payment terms

Supplier Benefits

Easier catalogue maintenance

Reduce the time and cost of catalogue maintenance Use the system as a PIM - rich data, high standard, aligned to Global Data Synchronisation Network (GDSN)

Sales efficiencies

You won’t need a large sales force to reach multiple trusts View trusts usage against contracts awarded and any slippage

System savings

One system - innovative commercial model for visible, forecastable and transparent pricing

Summary and Next Steps

Delivering an innovative digital channel for the NHS

• The partnership will deliver modern ‘hospital chains’ by rapidly enabling the modernisation of the mid-to-

back office across NHS hospitals and embedding an effective and efficient ‘21st century’ national shared service

• A ground breaking proposition – requires genuine partnership to enable delivery

‘Exclusive’ partnership between NHS SBS and Virtualstock

• National and local on-site and virtual support delivered by NHS SBS
• Technical migration - designed once and delivered by NHS SBS to local trusts
• The partnership will provide a digital supply channel in the NHS - not only online, but to mobile, enabling

greater productivity to the front-line of the NHS

NHS Supplier On-boarding

• Done once by NHS SBS for national suppliers, delivered locally through commitment from NHS Trusts
• With over 100,000 current suppliers eventually being connected to the platform, it will become the much-

needed ‘single gateway’ to the NHS for many thousands of businesses

Rapid deployment across the NHS

• A cohort of ‘early adopters’ will be selected from the existing NHS SBS customer-base, to be

implemented during summer 2017

• Develop further NHS Partnerships to inform the evolution of the services

• Recognising that various touch points across NHS SBS for NHS

Suppliers

• Invoice and payments
• Managing contact and transactional information
• Framework agreements
• Catalogue management
• Operational procurement – quotes and contacts
• Streamlining contact processes and information
• Removing costs and barriers for NHS Suppliers
• Passing value to our NHS clients from their suppliers
• Bringing transparency to processes
• Bringing further automation to process to increase accuracy and

efficiency

Developing an NHS SBS Supplier Strategy

Contact for F&A

Getting answers online

Contact for Procurement