IHEEM Conference 2015
Published: 23rd October 2015
Jan Ponsford Director of Virtus and Mike Taylor of Heart of England NHS Foundation Trust gave a talk at the IHEEM Conference on Wednesday 22nd on Healthcare Efficiency Through Innovation at Heartlands Hospital
Mike Taylor provided the Client Perspective of working in partnership with Virtus on innovative projects such as :
- Energy Sustainability Project – This project developed a unique approach to identify, design, implement and measure guaranteed energy cost and carbon reduction savings and incentivise continued improvement. Since the projects inception in 2013 it has delivered measured cost savings of £900k per annum and carbon reduction of
- Guaranteed Savings of circa £900k per annum 18% of annual spend
- Payback of 4.3 years
- Total savings of £12m over 15 years
- Options for 3rd Party Funding
- Continued improvement over 4 year framework
- Low implementation costs 0.05% of savings
- Readymade suit of procurement documents
- Speed of implementation 6 – 9 months
- Combined with CHP this scheme has allowed the Trust to exceed its carbon and CIP targets.
- Value for Money Exercise – The Trust commissioned Virtus to carry out an exercise to review the estates function to identify and deliver efficiencies across their activity. This approach was commissioned by Mike Taylor Head of Estates and involved interviews, budget and operational data analysis as well as operational observation. The conclusion of the report was to identify savings of circa 10 to 15% in operational costs and initiatives which are now in the process if being implemented and included:
- Service Contracts - Procurement and Rationalisation.
- Rationalisation of Stores – procurement and rationalisation.
- Contracts Management – opportunities for outsourcing, procurement and rationalisation.
- Centralisation of Administration – reduce duplication or triplication and standardisation of reports.
- Succession Planning – identifying resource, training, reporting and
- Procurement of Asbestos Consultancy – Asbestos was identified as a key service contract spending c£1.5 per annum across the estate. We carried out a procurement exercise to create a framework of asbestos consultants and are now delivering savings of 20% against the previous contract.
- Capital Programme PMO – We are working with the Trust to deliver a capital improvement programme valued at £100m and have supported the Trusts Programme Management Office (PMO) headed up by Mark Piggott Head of Programme Management. Projects include A&E, Operating Theatres, Pathology and Research facilities, Dermatology, Oncology/ Rheumatology, Urgent Care Centre, Hybrid Theatre, Maternity and Neonatal, AMU, Restaurant, Car Parks, Radiology and Endoscopy.
Significant operational efficiencies have been achieved through streamlining the programme management, and client liaison process and the Trust is benefiting from state of the art facilities which are appropriate for today’s medical challenges as well as being more operationally efficient,
In summary we have worked with the Trust to identify efficiencies through innovation and are helping them to divert funds to improved patient care rather than wasting it on unnecessary infrastructure costs.
Quote from John Sellars Director of Asset Management:
“you make us think differently”