ALTERNATIVE SERVICE DELIVERY

Opportunities, challenges & real life experiences within Ontario teaching hospitals

Paul FaguyIntegrated Vice President

Support ServicesHamilton Health Sciences

& St. Joseph’s Healthcare Hamilton

There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.

Niccolo Machiavelli

Points of Discussion

Alternative service delivery / outsourcing

Organizational considerationsGetting to a solutionAreas of applicationChallenges / OpportunitiesWhat next?

Outsourcing

Is the delivery of goods or services from an external source that had been supplied through direct internal processes?

May include in-sourcing, shared services, technological change or 3rd party provision.

Not a new phenomenon.

Organizational Considerations What are the services currently

done within the enterprise that may be appropriateappropriate for alternative delivery?

Strategic vs. TransactionalStrategic vs. Transactional

Organizational Considerations

A service is strategic if every aspect of how and what is accomplished is important for your enterprise.

Strategic = how is vitali.e. direct patient care

Transactional = what must be definedi.e. clean linen

Getting to an Outsourced Solution

StrategyMotivationImperativeBenefitOpportunity

Strategy

Areas of considerationPaceOrganizational capacity“Elevator speech”Contingency planning

Strategy without tactics is the slowest route to victory.

Tactics without strategy is the noise before defeat.

Sun Tzu

Motivation

Why are we doing this?All levels – board – executive - senior

management – frontline management – service partners – peers.

How will you align with mission, vision, values?

Imperative

Adding value cost – quality – service

Finding an essential alternativeFreeing up resources to focus on

what is important

Benefit

CostEconomies of scaleInability to accomplish internally

Opportunity

Will present based on number of variables within Will present based on number of variables within your enterprise and within your industry.your enterprise and within your industry.

internal attrition public policy collective bargaining agenda alternative service delivery organizations internal imperative strong executive leadership

Information Technology NetworkGroundskeepingTelephone Switch and NetworkLaundry and LinenTransportationHuman Resources Business ProcessesHealth Records Scanning and StorageCore HousekeepingWarehousing and LogisticsRetail Food and CateringPrinting and Forms ManagementPatient TV, Internet and TelephoneAncillary Security Services

What Next ?Redoubled opposition from organized labourIntense benchmarkingNo legislative reliefRenewed focus on regional approachesLHINs enablementStay the courseMust embrace the “boomer” attrition

opportunity.

All mankind is dividedAll mankind is divided into three classes: into three classes:

those that are immovable, those that are immovable, those that are movable, those that are movable,

and those that move.and those that move.

Benjamin Franklin

Questions & Questions & DiscussionDiscussion