UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships

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UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
UPDATE TO THE SECTOR
                                                                                             ISSUE
                                                                                               ISSUE–-MARCH
                                                                                                      MARCH 2020

                                            the ‘NewCo’ strategic priority has been       INSIDE THIS ISSUE
                                            paused and replaced with a work
                                            stream on establishing our Strategic          Clinicians contribute to
                                            Direction.
                                                                                          project’s success             > pg 2
                                            Building on earlier work with the Board,
                                            the strategy focuses on the alignment         Hospital beds’ project
                                            and co-dependencies between FPIM,             shows rapid returns           > pg 3
                                            data and procurement, with a sharp
                                            focus on continuing to lift the value we      Data accreditation pilot
                                            provide, customer-service levels and
                                                                                          launches                       > pg 5
                                            return on investment to DHBs.
                                            Following further input from the Board        Customer feedback
                                            and consultation with our customers           generates new ideas           > pg 6
In our November update I wrote that         and other stakeholders, the strategy
NZ Health Partnerships is focused on        will form the basis of a new Statement        Update on the FPIM
three strategic priorities:                 of Intent.                                    Programme                     > pg 7
1. Delivering on our commitments            With respect to Priority 3, this update
   today – achieving the goals              provides some information the                 Our Stakeholder
   and savings targets set out in           internal programme, which we call             Engagement Journey           > pg 10
   our Statement of Performance             the Organisational Performance
   Expectations 2019/20                     Programme.
2. ‘NewCo’ – collaborating with others      My other focus, as Chair of the sector’s
   to establish ‘NewCo’ and set it up for   Joint Procurement Authority, is making
   success                                  a number of improvements to health-
3. Organisational Performance –             system-wide procurement governance
   initiating a programme to improve        and planning. I’ve discussed this with
   organisational delivery in a number      all DHB CFOs and am doing so with
   of areas.                                Chief Executives as I travel to meet
                                            with them and members of their team
I am pleased to report we remain
                                            over the next two months.
on track with Priority 1. In National
Procurement we are close to delivering      Our next Board meeting is on 30 March
to the $14.9m savings target, which         in Wellington. We look forward to
will be a near three-fold increase on the   welcoming three new Directors from
savings achieved in 2019/20.                the Northern, Midlands and Central
                                            Regions. An update from our Chair,
Under Ministry of Health-led
                                            Terry McLaughlin, will follow shortly
governance, the Finance, Procurement
                                            afterward.
and Information Management (FPIM)
programme remains on time, scope            In the interim, please get in touch
and cost and the delivery team is           should you wish to discuss any aspect
nearing full strength.                      of this update in more detail.
This has seen the company increase
to 110 FTE from its historical average
of around 50 FTE, which we were on
1July 2019. I mention this by way
of context to the key appointments
section of this update.
Following confirmation that there will                                                 GET IN TOUCH
                                            Kind regards
be no immediate changes to NZ Health                                                   If you would like to receive our
                                            Steve
Partnerships’ governance/ownership,                                                    Update to the Sector or have
                                                                                       any feedback please email:
                                                                                       justine.banfield@nzhealthpartnerships.co.nz
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
NEWS

    NATIONAL PROCUREMENT

    Clinicians contribute to project’s success
    Head clinicians from across New Zealand provided          our efforts on items that clinicians were willing to
    key insights into a successful electrophysiology          consider using, without risking patient outcomes.”
    go-to-market strategy.
    DHBs’ clinicians need electrophysiology
                                                                In January 2019, an RFP was released
    consumables and equipment to diagnose and treat             and by September suppliers had been
    cardiac arrhythmia.                                         contracted, providing positive outcomes.
    “While NZ Health Partnerships (NZHP) brought a              This will deliver significant annualised
    strong commercial lens to the RFP process, we               benefits and operational value to
    needed to understand clinicians’ experiences of             participating DHBs – Auckland, Canterbury,
    using the equipment,” says NZHP Category Manager
                                                                Capital Coast and Waikato.”
    Joon Pan.
    Head Clinicians, including the Heart Rhythm NZ
    Chair, were involved from the early stages of the
    project providing both support and guidance.
    “We also took a very hands-on approach at each of
    the DHB’s by observing cases with the surgeons.
    “This provided clarity around the real-time challenges
    surgeons and clinical staff deal with on the ground.
    The items we decide to contract and focus on
    commercially have a direct impact on what clinicians
    choose to use.
    “These products are used within the heart and
    require a very careful procedure for success. In most
    instances, a clinician has used a specific product for
    many years. To use another product takes some time
    to get used to. By understanding this we focused          NZHP Category Manager Joon Pan

    NZHP

    NZHP CEO to chair JPA
    NZHP’s Chief Executive Steve Fisher is the new            cross-health procurement governance, operating
    Joint Procurement Authority (JPA) Chair. Steve            model and policy.
    attended his first meeting in December last year.         “However, as a group we feel the implementation
    The December meeting was also Nelson Marlborough          and execution of these foundations needs to be
    DHB CEO, Peter Bramley’s, first as CE Sponsor.            improved in order to deliver a greater return on
    The JPA is a collaborative group that provides a          investment for DHBs.
    collective view from DHBs and key procurement             “This is one of our primary areas of focus over the
    agencies to deliver value to the healthcare system.       next six months,” says Steve.
    This includes responsibility for designing, developing
                                                              The group has a role-based membership including:
    and biennial reviews of the DHB Procurement Strategy.
    In addition to this, the JPA is accountable for           • CEO NZHP (Chair), Steve Fisher
    allocating and resourcing strategic initiatives.          • DHB CEO Sponsor of Procurement, Peter Bramley
    The group also ensures agreed processes are               • CEO of PHARMAC, Sarah Fitt
    followed, while aiming to remove barriers to delivery     • GM Government Procurement, MBIE, John Ivil
    for DHBs.
                                                              • Chair of Procurement Operations Advisory Group,
    JPA is accountable to DHBs and regularly reports into
                                                                Kevin Broughton
    the DHB CEO Forum through Peter.
                                                              • CEO of HealthSource, Clare Thompson
    “The building blocks for effective procurement across
    health have been put in place over the last four years,   • A senior clinical representative, Dr Stephen Munn
    including the first ever DHB Procurement Strategy,        • A DHB CFO (vacant).

2      MARCH 2020
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
NEWS

    NATIONAL PROCUREMENT

    Hospital beds’ project shows rapid returns
    An initiative to improve costs for DHBs around             not have done this without their feedback. We
    hospital bed purchasing is already providing               were also privileged to work with subject matter
    benefits.                                                  experts around the country including DHB
                                                               clinicians from various disciplines – clinical
    “Typically, DHBs buy beds (and related products)
                                                               engineering, infection prevention and control,
    at the end of their life or when there are new
                                                               moving and handling and nursing staff.”
    requirements. Many DHBs have formal replacement
    programmes and some products are rented,” says             The project is in its final stages with pricing
    NZHP Category Manager Esreé Bezuidenhout.                  already implemented for products for purchase;
                                                               the rental category was completed in February.
    At the end of 2018, NZHP identified an opportunity to
    improve the approach for this category.
    “While the category has gone to market before, this
    time we added value to the process by implementing
    a Total Cost of Ownership model and introducing a
    new capital purchasing model, referred to as Further
    Tender Option (FTO).

      The first FTO process undertaken
      for one of the larger DHBs resulted
      in a significant benefit.”
    A key outcome of the project is the appointment of
    suppliers to a preferred and restricted list.
    Esreé adds, “We released this RFP based on what            NZHP Category Manager
    our customers told us they needed. Our team could          Esreé Bezuidenhout

    DataHub improves user experience
    NZHP’s DataHub has been extended to include Oracle
    Analytics Cloud (OAC) to improve data analysis and
    unlock greater benefit for our customers.
    The small investment in OAC recognises that the
    FPIM Health System Catalogue and Spend Data
    Repository are not expected to be fully operational
    until end-2020 or early-2021.
    All 20 DHBs store their procurement data in the
    system. This information is used by NZHP and
    PHARMAC to support their National Procurement
    teams to make more informed procurement
    decisions.
    Before the improvement, access to this important
    information was only available to specialist analysts.
    This impacted turnaround times and the user’s ability
                                                               Data Team Lead Hosein Derhamy
    to glean real insights. It also led to misinterpretation
    of business needs.
    “To address this, we extended the system to include
                                                                          FastFact – NZHP
    OAC – allowing our procurement team to access data
    to create reports easily and quickly. They are now able
                                                                         $
    to merge their procurement and business knowledge
    with key data, to identify opportunities for our
    customers,” says Data Team Lead Hosein Derhamy.
                                                                            16.6m
                                                               Annualised benefits to DHBs
    “Being cloud based, users can access the system
    from anywhere in the country if they have the right                        (FY2018/19)
    authentication credentials. Real-time reports can be
    easily and securely shared with other users.”

3      MARCH 2020
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
NEWS

    SHARED BANKING AND COLLECTIVE INSURANCE

    NZHP represents DHBs on risk and finance groups
    New Zealand Government Procurement and Property           Corporate and Finance, Grant McGregor, whose
    (NZGPP), in consultation with Treasury New Zealand,       team provides Shared Banking and Collective
    has been reviewing options for improving the way          Insurance services to the 20 DHBs.
    government agencies approach insurance
                                                              “We will also be a conduit to explain the proposal to
    The project identified that government agencies are       the DHBs, as they are likely to be early participants
    finding it increasingly difficult to obtain insurance     in any scheme. We will contribute to the risk
    at a reasonable cost. However, well-managed               finance aspects, as well as knowledge-share
    agency participation – through a centralised funding      around how a good collective could operate and
    solution – is key to successfully managing this and       engage with customers and service providers.”
    other key risks. The solution will be financially
                                                              NZGPP is a branch of the Ministry of Business,
    self-sustainable.
                                                              Innovation and Employment.
    They propose to implement Government partial
    self-insurance solution to reduce the cost of
    insurance, insurance, as well as improve the
    consistency, efficiency and effectiveness of risk
    management across Government.
                                                              FastFact – Collective Insurance
    To do this, a Client Advisory Group (CAG) and
    Alternative Risk Financing Project Governance Board

                                                                           $
                                                                              4.9m
    (PGB) have been established. NZHP will represent
    the DHBs on both the CAG and PGB.
    The PGB aims to provide direction, guidance and
    oversight of the development and implementation of                  total annualised
    the Alternative Risk Financing Project.                                 benefits
    “The CAG presents a good opportunity for us, as                            (FY2018/19)
    a DHB collective services representative, to bring
    our customers’ voices to the project’s design and
    implementation,” says NZHP General Manager,

    NZHP

    NZHP’s strategic performance programme on track
    Last year, our Chief Executive Steve Fisher identified    the workstreams, including clear outcomes and
    the need to lift our delivery and performance to the      measures.”
    next level right across our business.
                                                              OPP improvement areas include: streamlining
    Angela McCullough was appointed to the Executive          and improving processes; applying a structured
    Leadership Team, as Operations Manager, to drive          approach to manage business change initiatives;
    this work.                                                embedding the right ‘can do’ high-performance
    She has implemented an Organisational                     culture; and, ensuring the necessary tools are in
    Performance Programme (OPP), a structured,                place to create efficiencies and to enable better
    value-based plan to lift organisational maturity          delivery to customers.
    in a number of areas.
    “OPP is very much about our evolution as an
    organisation that strives to maximise value. It is          It’s important for our business
    about embedding a continuous improvement culture            to deliver greater value without
    and environment to achieve better outcomes for
    our customers, shareholders and people,” says
                                                                significant additional cost – the
    Operations Manager Angela McCullough.                       lack of the right tools, processes
    “While there have been pockets of improvement
                                                                and systems add costs to a
    initiatives in the past, this is the first time we have     business, which can impact
    dedicated teams and internal specialists focusing on        customers and shareholders.”

4      MARCH 2020
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
NEWS

    FPIM

    Data accreditation pilot launches
    DHBs will be able to create and maintain national and
    shared data, following the launch of a new Master
                                                                   About the course
    Data Accreditation course in January.
                                                                   The Master Data Accreditation course
    National master data is an asset collectively owned            includes training and reference
    by the DHBs. FPIM is responsible for creating and              documentation.
    maintaining shared data, including the Health System
    Catalogue and associated contracts, suppliers,                 There is a mandatory online General
    sourcing rules and price / value schedules that                Principals assessment module that
                                                                   must be passed before moving
    support the DHB National Procurement Strategy.                 onto any of the seven specialisation
    The Master Data Accreditation course has been                  modules, which will be progressively
    designed for those DHBs participating in FPIM.
                                                                   rolled out over the coming months.

    “This complex data environment requires a structured,          Each specialisation module has two
    consistent and disciplined approach to data                    components: an online assessment;
    management to ensure it remains fit-for-purpose,”              and, then a scenario-based
                                                                   observation.
    says Operational Service Training Specialist
    Stella Best, who has developed the accreditation               The Accreditation Pilot was rolled out
    programme.                                                     at the end of January and consists of
    “Through the course, we anticipate that DHBs
                                                                   the General Principal and Suppliers
                                                                   modules, the observation component
    providing master data services will be accountable to          will be overseen by FPIM Master Data
    the Operational Service Data Team around ensuring              Team Leader Jeet Raghav.
    data quality and standards. This includes managing
    risks and issues mitigation as well as privacy.”
    All Wave One DHBs are participating in the online
    e-learning pilot, which closed on 11 March.
    Participants’ feedback will be reviewed to share how
    best to roll it out across the DHBs participating in
    FPIM.
    “We are pleased with the participation levels and
    feedback so far,” says Stella.
    “Based on DHB CFOs’ feedback last year it was clear
    an accreditation process and training had to be
    developed to support DHB employees to apply a more
    systematic approach to creating and maintaining
    data to nationally-agreed standards. This includes
    supporting them to keep appropriate records and
    demonstrate good practice around data security and
    confidentiality.”
    A key component is being able to evaluate a DHB
    employee’s capability and abilities around managing
    data. This can then be shared with the participant and
    DHB to identify areas for improvement.

                                                             Operational Service Training Specialist Stella Best

     SNAPSHOT

               DHB roadshow kick-starts 2020
               The Operational Service Customer Roadshow started in February, as a drive to meet
               with DHBs in person to gather feedback and insights into their experience of the
               service to date. The first DHB visit was with the Bay of Plenty DHB business support
               leads. Over, the next two months the team will continue the roadshow to ensure all
               DHBs participating in FPIM are involved.

5     MARCH 2020
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
NEWS

    CORPORATE AND FINANCE

    Customer feedback
    generates new ideas                                         AVAILABLE Variance Analysis Template
                                                                DHBs are regularly asked for reasons
    Three new initiatives have been developed by
                                                                around actual cash and forecast cash
    NZHP’s Corporate and Finance team, in response
                                                                balance differences. To enable DHBs
    to customer feedback.
                                                                to save time and effort writing emails
    In 2019, the annual Shared Banking and Collective           in response, a simple template was
    Insurance Customer Feedback Survey generated                developed allowing them to easily
    the idea to develop tools and resources to better
                                                                select variance reasons from a few
    support DHBs.
                                                                common items.
    “The surveys were introduced in 2018 as one
    way to gain understanding about what our                    AVAILABLE Shared Banking and
    customers think about the services – processes,             Collective Insurance Customer
    communications and support,” says Treasury and              Handbooks
    Finance Analyst Sahana Rao.
                                                                Information handbooks are now available
    “If improvements are made during the year, we               to provide DHBs with better understanding
    endeavour to check in with the DHBs to see how              of the end-to-end services provided by
    they are working. We also like to gather feedback
                                                                NZHP. The handbooks also enable new
    about the service providers, Marsh and BNZ.”
                                                                starters to the DHBs to quickly access
                                                                information all in one place.

                                                                UNDERWAY Forecasting Tool
                                                                Each year DHBs are asked to provide
                                                                NZHP with short-term (eight weeks) and
                                                                long-term (two years) daily rolling cash
                                                                forecasts and any assumptions used
                                                                in the preparation of the forecasts. The
                                                                information is used for cash management
                                                                and regular reporting to the Ministry of
                                                                Health. The manual process requires
                                                                DHBs to send emails, which NZHP receives
                                                                and consolidates using excel tools. There
                                                                are also inconsistencies in the different
                                                                assumptions used by DHBs in the forecast.
                                                                NZHP is leading the development of a tool
                                                                to streamline the forecasting process,
                                                                while also increasing accuracy and
                                                                consistency. We aim to make this available
                                                                to DHBs later in 2020..
    Treasury and Finance Analyst Sahana Rao

      SNAPSHOT

               Focus on procurement trends
               Procurement leads from the DHBs, PHARMAC and MBIE attended the bi-annual
               Procurement Leads Forum in November 2019. Facilitated by NZHP, the forum was
               titled ‘A fast evolving environment’. Presenters discussed the impact to the system of
               measuring broader outcomes, industry changes, therapeutic regulations, sustainability
               and traceability across the supply chain. Participants offered suggestions for future
               events in 2020, including:
               • Opportunities to create value
               • DHB case studies
                                                                          Sahana
               • Increased networking time
               • NZHP development of its operating model.

6      MARCH 2020
UPDATE TO THE SECTOR ISSUE - MARCH 2020 - NZ Health Partnerships
UPDATE on FPIM
    HEALTH FINANCE, PROCUREMENT AND                              FPIM ORACLE PROGRAMME
    INFORMATION SYSTEM                                           The National Technology Solution build remains
    In December, the FPIM Governance Board endorsed              on time, scope and budget.
    NZHP to continue delivering the programme and service        Following acceptance of the Development
    in an integrated way, by working with the Ministry of        Environment in November, the build of the support
    Health (MoH) and the FPIM Governance Board.                  (SUP) environment was also accepted in early
    December also saw the South Canterbury DHB Board             February.
    approve the move to join FPIM bringing the total             Two of the five environments required for the
    number of participating DHBs to 11.                          IT infrastructure have now been successfully
                                                                 handed over.
    HEALTH SYSTEM CATALOGUE
    (FORMERLY NATIONAL CATALOGUE)                                Following a decision to upgrade the Oracle
                                                                 Application, the team will be working with existing
    The Health System Catalogue Design activities are
                                                                 customers to deliver the upgrade at the beginning
    progressing well, despite timeline pressures.
                                                                 of June. At the beginning of March, our customers
    The draft Health System Catalogue Business Case was          user acceptance testing on the upgrade will be done
    submitted in December 2019 and the working group             working alongside our Operational Service team.
    provided subject matter expertise and input, as well as
                                                                 A number of customer-focused engagement
    a final review.
                                                                 activities were implemented, including: Project
    The group represents a cross-section of healthcare           Manager Bart Signal visited Southern DHB (SODHB)
    stakeholders including DHBs, PHARMAC, HealthSource           for a Finance Requirements Workshop to provide an
    (formerly hA FPSC), NZHP, a private hospital provider        overview of the programme, work required and key
    and independent advisors.                                    processes within each area of the system.
    In February, the business case was shared with DHB           “We wanted to have some face-to-face time with
    CEOs, CFOs and CIOs and other key stakeholders.              the DHB and to gather insights into its current
    Stakeholders include PHARMAC, GS1, Johnson &                 processes and site specific issues. It was a
    Johnson, MoH and central agencies.                           productive session and we came away having
    In February, a central agency clinic was held to run         been able to explain the additional information
    over the ins and outs of the business case and gain          required to support the set-up of the familiarisation
    feedback from these stakeholders. The clinic ensures         environment.”
    all the required information is included and factors –       The team has also visited South Canterbury
    like risk allocation and affordability – have been taken     and Counties Manukau DHBs, among other key
    into account. Attendees at the clinic included Treasury      engagements on site.
    NZ, the Government Chief Digital Officer and MOH,
                                                                 (See our Stakeholder Engagement Journey for
    FPIM, PHARMAC, Governance Board Independent,
                                                                 more detail on pg 10)
    MBIE, DIA and Stats NZ.

         NEWS – Operational Service                                                     What our
                                                                                        customers say...…
         Customer service survey launched                                               “The ‘new’ approach to
         The first Operational Service customer survey was released to frontline        their customers is like
         FPIM users in December 2019 to gather key insights into ways to                a breath of fresh air. To
         improve customer experience.                                                   be able to call and email
                                                                                        directly with members
         “It is important that we get it right and our customers let us know what
                                                                                        of your team has been
         they think about our team, what we are doing well and where we can
                                                                                        amazing and has already
         improve,” says Head of Service Delivery Phil Unsworth.
                                                                                        produced excellent
         The survey used the Net Promoter Score measurement tool as it is
                                                                                        results. This new
         considered the internal gold standard customer experience metric.
                                                                                        direction will lead to a
         “The survey results showed areas for improvement and provided us               great improvement in our
         with a good baseline (along with the other survey responses), to identity      relationships and much
         priority areas of improvement around customer experience,” he says.
                                                                                        better communication
         “We intend to survey regularly – our next one is planned for late-March.       than we had previously.”
         Customer experience is a key priority for us and we will only get it right
         if we listen to what our customers are telling us.”                            JACKY CLARK, ORACLE
                                                                                        BUSINESS SUPPORT,
         The new approach to customer service is being reflected in feedback
                                                                                        WAIKATO DHB
         from our customers.

7      MARCH 2020
UPDATE on FPIM continued

    OPERATIONAL SERVICE
                                                              Since early-2019:
    FPIM service enhancements requested by
    Wave 1 DHBs were delivered on time prior to
    Christmas. Additional workflow enhancements
                                                              • There’s been a 53.3% drop
    have also been completed – these                           in outstanding items
    enhancements will make customers’ lives
    better by ensuring that customer approvals get             remaining open at the end
    to the right place within the right timeframe.
                                                               of each month
    The team also supported the DHB testing of
    the latest Oracle version (12.2.9) in February.
    This version, following testing, should be live
                                                              • There’s been a 53.7% drop
    by late-May / early-June. It ensures users will            of new items being opened
    continue to be supported by Oracle, as well
    as enabling the service team to receive future             each month
    functionality.

    OPEN/CLOSED SERVICE REQUESTS (IT ‘TICKETS’)

                2019
           JANUARY
         FEBRUARY
              MARCH
                APRIL
                  MAY
                 JUNE
                  JULY
             AUGUST
       SEPTEMBER
          OCTOBER
        NOVEMBER
        DECEMBER
                          0            250            500      750        1000         1250   15000

                               Starting           New Items   Closed In   Ending
                               Open Items         Assigned    Period      Open Items

8      MARCH 2020
What our
                                                   customers say...

          CASE                                     “It’s most definitely quicker
                                                   to return results.”

          STUDY                                    “I’ve done some testing with
                                                   some ‘more than basic’
                                                   SQL queries and found that
          DataHub –                                there has definitely been
                                                   an improvement in data
          data security                            retrieval and extraction.”

      OPPORTUNITY
      All DHBs send purchasing information to NZHP, which we load and
      consolidate so our analysts can prepare reports used by PHARMAC and
      NZHP National Procurement to understand DHB spending and assist
      category planning for procurement.

      CHALLENGE
      When DataHub was moved to NZHP it was housed at NZHP’s office.
      The team identified potential data security risks.

      SOLUTION
      We initiated a project to migrate the system to the Cloud where data
      security could be assured. The project was completed successfully with
      minimum downtime for our end users. The Cloud also provides better
      performance. In addition, it provides access to Cloud vendors such as
      Oracle Cloud Analytics, giving advanced data analytics and better report
      development and sharing. It now takes a third of the time to write a report,
      reducing bottlenecks and downtime.

      OUTCOMES
      • Increased data security
      • Faster access to data
      • Richer report development environment
      • Better procurement opportunities

9   MARCH 2020
Our Stakeholder                         NOVEMBER

     Engagement                                      8                                        21
     Journey                                  FPIM presented
                                              at the bi-annual
                                                                         National CFO Forum: discussions with CFOs.
                                                                       Topics included; BNZ internet banking availability,
                                            Procurement Leads          MBIE’s Alternative Risk Finance All-of-Government
                                             Workshop, gaining       Collective proposal for 2021, BNZ Cash Offset liquidity,
                                           valuable insights into   FPIM, Health System Catalogue and accounting options,
                                             procurement need                and the National Procurement pipeline

                                JANUARY 2020                                                                DECEMBER

               21                    11                       16                Throughout                    12
           POAG review         POAG full day,                FPIM                  FPIM                  National DHB
             of Health          face-to-face              Governance             workshops                CE Forum
           Procurement                                      Board
             Capability                                    Meeting                  FPIM                 FPIM update
            framework                                                            accounting               to Cabinet
                                                                                   options
                                                                                 workshops

        Throughout                   24                     30                    30-31                     31
            FPIM           FPIM Oracle Finance             FPIM               South Island            Health System
         accounting           Questionnaire              Customer               Finance            Catalogue Workshop
           options            Workshop with                Group             Requirements             with multiple
         workshops           Northern Region              meeting              Workshop               stakeholders

             MARCH 2020                                                                               FEBRUARY 2020

      Early 2020      Feb to March          17-21 Feb                      14                       13                12
       Updating        Operational          Supply chain         Health System Catalogue      National DHB       Supply Chain
        the new          Service           workshop and            Business Clinic with        Chairs and         Operations
      DHB Boards        Customer            consultation             FPIM Governance           CE Forum             Group
       on FPIM’s        Roadshow           with Southern           Board Members, DHB
       progress                              and South             representation, and
                                          Canterbury DHBs         other key stakeholders

      SNAPSHOT

          Collaboration keeps FPIM on track                                            It’s always great to
          In November, the FPIM team held six workshops for DHBs,                      have the opportunity
          which will be using the National Technology Solution
          (NTS) (under the FPIM Oracle Programme). Participants
                                                                                       to meet with our
          included DHB CFOs and the area leads (such as data lead,                     customers. They are
          finance lead and supply chain lead) who will be using the
                                                                                       the reason we’re doing
          NTS. The interactive sessions helped both customers
          and the FPIM team gain valuable insights into key focus                      this and their input
          areas and ongoing planning activities. A follow-up survey                    is vital to produce a
          was distributed to participants in January, with feedback
          being generally positive, along with a strong desire for
                                                                                       system that will work
          participants to have further opportunit to get more in-depth                 well for them.”
          with requirements. To support this, a second round of
                                                                                       PROGRAMME MANAGER
          workshops are being held this month to clarify the system                    NIGEL BERNIE
          configuration required by DHBs to meet their requirements.

10     MARCH 2020
PEOPLE
     NZHP participates in in the New Zealand Government
     Procurement (NZGP) graduate and intern programme.
     This enables a graduate to work at NZHP on a
     six-month procurement secondment each year.
     In 2019, we invited Mangala Kasongo to be part of
     our team.

     Mangala Kasongo, NZGP Graduate
     “When I started at NZ Health Partnerships, I had a very
     limited understanding of what the procurement function
     was. My time here enabled me to amass a wealth of
     understanding and practical knowledge about this
     important area of business for Government.
     “Being able to work so closely with the team taught
     me the importance of stakeholder engagement and
     relationship management. The skills I’ve learnt will help
     me on my Procurement Graduate Programme journey –
     from here, I’ll be able to run an end-to-end procurement
     process.
     “A highlight has been the opportunity to work on a variety
     of projects, alongside category managers. Working in the
     health system is both challenging and rewarding – being
     able to work with people who are genuinely passionate
     about making a difference in every way possible, through
     procurement, has taught me a huge amount as a
     professional and an individual.”

      SNAPSHOT
        NZHP Board update
        At its last meeting on 18 February, the Board             With three of the four DHB directors not being
        welcomed the Director-General of Health’s letter to       reappointed as Chairs, the Board is working to
        DHB Chairs and Chief Executives on 10 February.           secure replacements for the Northern, Midlands
        The board is looking forward to re-engaging               and Central Regions. Jenny Black has helped
        with the Chairs and Chief Executives’ quarterly           facilitate this process. Nominations have been
        meetings.                                                 made for all three regions: Midlands Region
        The Board was also pleased to note FPIM is on             (Dr Jim Mather, Chair Lakes DHB), Central Region
        time, scope and cost with change and transition           (Sir Paul Collins, Chair Wairarapa DHB) and
        planning progressing well. While the FPIM                 Northern Region (Pat Snedden, Chair Auckland
        Governance Board and SRO Shayne Hunter                    DHB).
        oversee all aspects of FPIM, the Board maintains          The Board resolved to identify a suitable candidate
        an interest as the delivery partner on behalf             for the third independent director position which
        of MoH.                                                   has been left vacant pending the outcome of the
        The Board is also confident that NZHP’s National          Shareholders Review Group process.
        Procurement team will deliver close to the
                                                                  NATIONAL CHAIRS
        $14.9m benefit target. This will be a near
        three-fold increase in national procurement               National DHB Board Chairs were announced in
        benefits compared to 2019/20.                             December 2019 by Health Minister David Clark.
        NZHP’s focus on lifting the value NZHP provides,          This includes 76 appointments, including 13 new
        customer service levels and return on investment          DHB chairs. Of the 13 Chairs, four Māori Chairs
        to DHBs – as part of its three to four-year strategy      were announced as a “significant changing of the
        – received endorsement from the Board.                    guard”. The new DHB Board members started
                                                                  their three-year terms on 9 December 2019.
        Following further development and input from
        the Board in March, the strategy will be discussed        NZHP’s DHB Director for the Southern Region,
        with DHBs and other stakeholders, with a view to it       Ron Luxton, was reappointed as Chair DHB South
        forming the basis of a new Statement of Intent.           Canterbury.

11     MARCH 2020
PEOPLE

     Key Appointments
     FPIM

     Aaron Miller                         Derek Reid                            Jeet Raghav
     – DEPLOYMENT MANAGER                 – TEST MANAGER                        – MASTER DATA TEAM LEADER
     Aaron has more than 22 years’        With more than 20 years’              Jeet is responsible for delivery
     experience in the IT sector, with    experience in ICT, much of it         of the administration and
     vast expertise focusing on large     in testing, Derek brings valued       coordination of master data
     ERP implementations, upgrades        experience to FPIM. Derek has         changes. He is dedicated to
     and rollouts for global              worked on similar projects at         data integrity and quality. Jeet
     organisations. Aaron spent 10        2degrees, including implementing      brings master data management
     years in Europe implementing         an automated Procure to Pay           experience to his role; this
     and deploying SAP solutions for      solution. He also has health          includes managing teams within
     Diageo, Philip Morris and Shell.     software testing experience           large, complex environments
     Most recently, he completed a        achieved at healthAlliance on the     including Auckland Council and
     long engagement at Fonterra, as      Clinical Portal Upgrade project for   Avis Budget Car Rental.
     a team lead across many projects     Counties Manukau and Waitematā
     involving ERP, manufacturing,        DHBs. Most recently, Derek was
     integration and trade and            Test Managing multiple projects
     compliance systems.                  at 2degrees. His experience
                                          includes ICT roles in the
                                          telecommunications, health and
                                          electricity industries.

                                                                                Justin Clifford
                                                                                – SERVICE INCIDENT AND
                                                                                ADMINISTRATION TEAM LEADER
     Anthony Gates                                                              Justin has 15 years’ experience in
     – CHANGE AND RELEASE MANAGER
                                                                                the service industry and technical
     Anthony Gates provides                                                     support, predominantly in
     leadership in IT Service             Ian Fenwick                           managing teams in high-pressure
     Management and manages the           – OPERATIONS & COMPLIANCE             operation environments such
     Change and Release processes.        MANAGER                               as service operations, incident
     With experience and results                                                management and help desk
     across the Service Management        Ian joined the Operational Service    support. Most recently, Justin
     Lifecycle at operational,            Delivery team as Operations &         managed the Vodafone Service
     managerial and consultancy           Compliance Manager, bringing          Assurance Team focused on
     levels, Anthony is an expert in      with him a strong customer service    giving consumer, government
     ITIL. Previous roles within the      focus gained by leading teams in      and business customers a
     Service Transition space include     the hospitality, justice, insurance   streamlined experience when
     change, release, and configuration   and telco industries. Prior to        loss of service was experienced.
     manager roles at TVNZ, Telecom       joining NZHP Ian was a Customer
     NZ (now Spark), Westpac              Care Manager at Vodafone for the
     NZ, and Deloitte where he            consumer contact centre technical
     delivered multiple Configuration     support and fault management
     Management Database,                 teams.
     coordinated system upgrades and
     managed changes to drive value
     to stakeholders.

12       MARCH 2020
PEOPLE

     Nigel Bernie                             Matt Johnston                           Sattar Hasan
     – FPIM ORACLE PROGRAMME                  – SOLUTIONS ARCHITECT AND               – TECHNOLOGY DELIVERY
       MANAGER                                INTEGRATION LEAD                        MANAGER
                                              Matt Johnston joined NZHP as            Sattar joined the FPIM team
     Nigel joined the FPIM team as            Solution Architect, initially working   as Technology Delivery
     Senior Project Manager in October,       on the Health System Catalogue          Manager. He is a customer-
     before being appointed as FPIM           and providing guidance on FPIM          focused service delivery
     Oracle Programme Manager                 system architecture. Matt was most      manager who brings a solid
     in December. An experienced              recently a consultant architect,        track record of successful
     programme and project manager,           working in food and beverage,           implementations of healthcare
     Nigel brings a solid track record        health and utilities organisations,     and ERP systems across
     of delivering programmes and             on business applications,               different industries. Sattar has
     projects in IT, manufacturing,           manufacturing systems and               held positions in health, most
     utilities, local government and          international web applications          recently as a CIO for a group
     education. He previously worked          delivered via the cloud. His clients    of private hospitals abroad,
     with Fonterra where he led a             included Fonterra, HealthSource,        leading the implementation
     number of projects within the Trace      Vector, Watercare, NZ Venture           of infrastructure and clinical
     Programme, including rolling out         Investment Fund and Plunket. Matt       management solutions.
     the batch tracing solution to all NZ     has more than 20 years’ experience
     manufacturing and milk collection        in IT technical and scientific roles
     sites and product authentication for     and business analysis working for
     infant formula.                          BP, Land Information NZ, Telecom
                                              1G mobile network and Transpower.

     NATIONAL PROCUREMENT

     Abhijit Trikannad                        Mathew Lucas                            Rowena C. Hernandez
     – CONTRACTS MANAGER, CLINICAL            – CATEGORY MANAGER,                     – CONTRACTS MANAGER
                                              INDIRECT SERVICES
     Abhijit brings a strong academic                                                 Rowena has more than 20 years
     background in law and health             Mathew has strong indirect              of supply chain management
     science and he has been admitted         procurement experience through          experience and has has worked
     to the New Zealand bar as a              previous roles in public sector,        in multi-national organisations
     solicitor. Specialising in contract      media and FMCG industries.              (public and private sector).
     management he previous worked            Mathew held similar roles at            Rowena recently moved back
     for the Department of Corrections:       Auckland Council, MediaWorks            to New Zealand from her native
     Ara Poutama Aotearoa by managing         and SkyCity.                            Philippines, where she worked
     high-risk, high-value contracts                                                  with brands including Nestle
     including privatised prisons, prisoner                                           Philippines, HSBC Global
     escorting, supervision services and                                              Resourcing, Holcim Philippines
     prison electronic security systems.                                              and EDC.

13      MARCH 2020
PUBLICATIONS
ANNUAL REPORT

NZHP’s Annual Report 2019 can
be viewed on our website.

www.nzhealthpartnerships.co.nz
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