VP Quarterly Report on Strategies

Q3– February 2, 2016

Robbie Peters, Vice President, Financial Services &

Chief Financial Officer

Vision: Healthy people, families and communities.

Portfolio Overview

• Finance– Accounting & Financial Reporting– Payroll & Benefits– Decision Support

• Facilities Management

• Materials Management

Multi-year Strategic Plans VP is Leading on:

• Financial Sustainability Strategy Multi-year Plan

• Facilities Strategy Multi-year Plan

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.

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

Financial Sustainability – RQHR Results as of Dec. 31, 2015

• 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

• 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

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                                                                       

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

Financial Sustainability

Questions?

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.

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.

• 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

– 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

Facilities Strategy

Questions?