© 2014, Confidential

AGENDA

1) Recap of project goals

2) Discuss initial findings

3) SWOT Analysis

4) Potential savings opportunities

5) Proposal & Timeframe

6) Project requirements

7) Risks

8) Benefits

9) Discussion and next steps

10) Contact Details

Goals• Achieve cost reductions through advanced data analytics

Reminder• Not a business intelligence or management reporting project

Requirements• Focus on big saving areas, however some quick wins are also

required• Adopt a strategic approach• Run analytics projects in conjunction with HC’s domain experts,

Hospital Quality Team and Procurement• Transfer analytics skillset to HC’s staff in process • Project costs are small in comparison to savings

1) PROJECT GOALS

HC operates a number of hospitals across Australia, with a full range of clinical services, a medication centre, pathology and pharmacy businesses. It relies on the following systems:

• 7 independent SAP Accounts modules (collectively 900k transactions / month)

• 1 SAP General Ledger module (15k transactions / month)

• 1 of 2000 ‘green screen’ pathology billing system

• 1 web-based HR / payroll system

• 4 different time & attendance programs

• 17 different rostering systems

• 3 HSE management systems

• Numerous independent clinical systems and patient databases.

• A wide variety of excel sheets

2a) INITIAL FINDINGS: DATA SOURCES

Over the last week, The Data Analysis Group (TDAG) met with 43 managers and department heads across the 4 divisions. Using Excel as a benchmark:

• Most clinical employees do not use Excel

• Operational and unit managers have some skill and use Excel regularly.

• Finance and procurement employees are regular users with two people identifying themselves as advanced.

• IT Department has 2 database administrators however overworked and unable to assist with project.

• A finance controller, <name withheld>, classifies herself as a ‘data geek’. Her manager described her as ‘smart & hardworking’

2b) INITIAL FINDINGS: DATA SKILLS

From a data / analytics perspective:

3) SWOT ANALYSIS

• Capturing a lot of data• Direct & indirect costs correctly

allocated to cost centres• Existing SQL license and

infrastructure

• Current environment is ripe for data-driven savings

• Develop in-house analytics capability

• Cost effectively improve patient care

• Multiple systems make for difficult analysis

• Some data is unclean• Lack of analytics expertise• Amount of available data precludes

use of Excel

• Costs continue to rise• Savings opportunities foregone• Deterioration of patient care

STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

The following projects have been identified to potentially yield significant savings:• Accurately costing patient procedures and services• Addition of new high-yielding patient services • Benchmarking of comparative BUs within the group• Closure of low-yielding patient services • Cost reduction through elimination of unnecessary effort and waste• Cross subsidisation of preventative services from curative services• Developing standardised and optimised health care policies• High spend and complicated supply chain categories • Increased bed utilisation through greater number of admissions• Convert inpatient care to high-tech outpatient services• Moving from reactive maintenance to preventative maintenance• Outsourcing / insourcing of indirect services • Reduced labour costs through improved scheduling• Stock-loss analysis of high value drugs and medical supplies

4) POTENTIAL SAVINGS OPPORTUNITIES

TARGET SAVING: 9% OF SPEND

TDAG propose a 4 week diagnostic process to quantify high-

yielding savings opportunities.

• Focus on last 5 years

SAP data.

• Extract, transform &

load years into SQL

data warehouse

• Include CC, BU &

Divisional dimensions

• Check aggregated

values align with

financials.

Extract, Clean

& Load data

Data Mining

to Quantify

Opportunities

Develop & Select

Pilot ProjectPilot Project

Review, Refine &

Embed Processes

• Identify savings

opportunities

• Size the prize

• Select suitable

projects for pilot

approach

• Develop assessment

criteria for pilot

• Scope out 3 projects

in conjunction with

BU owners,

Procurement & HQT

• Assess project risks,

rewards & duration

• Identify

stakeholders,

internal/external

team & success

criteria

• Commence pilot,

TGAG running

analysis, HC running

project

• Identify & optimise

business levers

through data insights.

• Conduct regular

Stakeholder reviews

• Review / capture

learnings during each

stage of the process.

• Review pilot project

against key criteria

• Refine processes

based upon learnings

• Achieve sign-off from

stakeholders and

process owners

• Agree roll-out plan for

implementation

• Agree training and

resource

requirements to

deliver

3 Weeks 1 Week 2 Weeks 8-10 Weeks 4 Weeks

Diagnostic Phase

Review findings &

agree next steps

5) PROPOSAL & TIMEFRAME

CFO approve

1 pilot project

Analytical skillsets required • High-end analysts to be provided by TDAG.• Access to <name withheld> within finance, to join team and transfer knowledge.

Business skillsets required • Access to finance, procurement and Hospital Quality team, as per individual projects’ scope. • Access to HC’s domain experts and stakeholders. Permission to be obtained from domain experts’

superior(s) first. • IT department to set up server, and provide access to data exports for existing systems.• Weekly review with project owners and monthly review with stakeholders.

Data requirements • Data for each project will be specified in the project brief, along with any cleansing requirements

Software / hardware requirements • Virtual server with administrative access • Installation of

o SQL server (Existing license)o SSIS, SSRS, SSAS and SSMS (Existing license)o RapidMiner (OS)o Notepad & Vim (OS)o Excel (Existing license)o Tableau Professional (1 seat at USD $1,999) and QlikView (no charge)o Remote access to SQL and to server

6) PROJECT REQUIREMENTS

7) RISKS

Although each data-project will come with its own risks, the common risks of this overall project include:

RISK MITIGATION

Compromised patient care from too much cost cutting.

• Patient Standards Committee (PSC) signoff before implementation phase

Loss of employee trust. • Acknowledge that staff will not be blamed or victimised for past performance

• Involve stakeholders in project

Unsafe medical practices. • Project signoff from PSC

Project costs exceed savings. • Rigorous review process to prevent projects with insufficient returns from going ahead

• “Fail fast” methodology, with weekly reviews

Disclosure of sensitive data. • Sensitive data (eg. salaries, patient data etc.) to be aggregated and/or de-identified

• Available to project team on a restricted basis

The benefits from this project strategy include:

• Cost effective. Gain access to skilled data analysis professionals,

without the overhead associated with building and maintaining your

own internal infrastructure and team.

• Fast time-to-benefit

• Reduced possibility of project abandonment. Actively involving end

users in the process creates buy-in and commitment.

• Continuous feedback throughout the project cycle results

in processes that meet the actual needs of patients and staff.

• Streamlined face-to-face communications improve HC - TDAG

relationships by developing trust and sharing knowledge.

• Sign off procedure prevents compromised patient care.

8) BENEFITS

9) DISCUSSION AND NEXT STEPS

Discussion• Does this strategy meet your needs?• If not, what do we need to change?• Do you foresee any additional risks or implementation challenges?

Next Steps• Formalise strategy and signoff• Commence Diagnostic Phase• Update meeting in 1 month.

10) CONTACT DETAILS

For further information, please contactThe Data Analysis Group on:

James Karis CEO & Chief Geekp) 1300 788 662

e) info@data-analysis.com.auw) www.data-analysis.com.au