1. delivering value to the NHS Delivering value to the NHS 1 © NHS Shared Business Services Ltd 2011 Supplier Forum September 2011

2. delivering value to the NHS 2 © NHS Shared Business Services Ltd 2011 Objectives of the day  Provide more information about NHS SBS and how we work  To gain an appreciation of some of the issues suppliers to the NHS face  To facilitate a forum for sharing of ideas  To enable feedback of concerns  To facilitate the ongoing sharing of information  To identify improvements and ways in which we could all work better to make this happen

3. delivering value to the NHS 3 © NHS Shared Business Services Ltd 2011 Agenda

4. delivering value to the NHS 4 © NHS Shared Business Services Ltd 2011 What’s changed since we last met?

5. delivering value to the NHS 5 © NHS Shared Business Services Ltd 2011 What’s changed since we met? 300 Mortgage deals disappear in one day – Money Facts Local authority debt now runs into many millions of pounds and with consumer borrowing at an all time high – Guardian Newspaper Recent surveys of borrowing show consumer debt is at an all time high. Doubling over the past seven years, it now exceeds one trillion pounds, meaning that every man, woman and child in the UK now owes an average of £17,000. - Telegraph Whilst 19% of businesses wait less than 30 days on average to receive payment following an invoice, 35% of businesses wait on average 30 to 45 days and 26% of business owners claim to wait between 45 to 60 days to receive monies owed.

6. delivering value to the NHS 6 © NHS Shared Business Services Ltd 2011 What’s changed since we last met? “NHS needs £5bn to save 40 hospitals” “Circle Health aims to take over Epsom NHS hospital” “Lansley's claims about hospital PFI debt 'misleading”

7. delivering value to the NHS 7 © NHS Shared Business Services Ltd 2011 The business of care

8. delivering value to the NHS 8 © NHS Shared Business Services Ltd 2011 Changed timelines April 2011 April 2012 April 2014 April 2013 PCT Provider Services ALB’s & SHA’s – extended to April 2013 PCT Commissioner Services – no change to deadline. Commissioning Board not ready until April 2013 All trusts become foundation trusts – deadline relaxed but majority expected to achieve Services to move to a new home Organisation disappears Gain Foundation status or cease to exist Organisation disappears £20bn of efficiency savings by 2014 45% reduction in management costs by 2014

9. delivering value to the NHS 9 © NHS Shared Business Services Ltd 2011 Where are we? Changes to the Health and Social Care Bill - Providers Proposals  All NHS trusts to become foundation trusts by 2014 (NHS Trust Development Authority to assist with the transition).  Controls on mergers and acquisitions relaxed to facilitate takeovers of failing NHS trusts.  Providers unable to compete will be allowed to fail. Monitor to have powers to ensure continuity of services at a local level by ‘designating’ them. Monitor Latest position  The 2014 deadline for all NHS trusts to become foundation trusts has been relaxed, although the majority will still be expected to meet this deadline.  Monitor’s oversight of foundation trusts will be extended to 2016 to allow time to build capability of governors.  Foundation trusts will be required to hold board meetings in public.  All providers are to be placed under a ‘duty of candour’ requiring them to be open and transparent in admitting mistakes.  Amendments to be brought forward at a later stage to revise the failure regime.  Foundation trusts will be required to produce separate accounts for their NHS and privately funded activities.

10. delivering value to the NHS 10 © NHS Shared Business Services Ltd 2011 Where are we? Changes to the Health and Social Care Bill – Structural changes Proposals  Strategic health authorities to be abolished from April 2012 and primary care trusts by April 2013.  NHS Commissioning Board to be operational from April 2012. NHS Commissioning Board  These changes to be implemented alongside a 45 per cent cut in management costs. Latest Position  The deadline for abolishing primary care trusts has been retained; PCT clusters will become local outposts of the NHS Commissioning Board with responsibility for overseeing commissioning groups from April 2013.  The deadline for the abolition of strategic health authorities has been extended to April 2013. In the meantime, they will retain responsibility for NHS finances and be slimmed down into a small number of clusters.  The NHS Commissioning Board will not take on its full responsibilities until April 2013.  The government’s response to the NHS Future Forum emphasisesNHS Future Forum

11. delivering value to the NHS 11 © NHS Shared Business Services Ltd 2011 Where are we? Changes to the Health and Social Care Bill – Competition Proposals  Any willing provider’ will be able to provide NHS- funded services.  Providers to be permitted to offer services at less than the mandatory tariff price. Latest Position  Any willing provider now called ‘any qualified provider’ and will be phased in gradually from April 2012.  Amendments made to outlaw price competition.  Amendments to outlaw any policy to increase or maintain the market share of any particular sector of provider

12. delivering value to the NHS 12 © NHS Shared Business Services Ltd 2011 Where are we? Changes to the Health and Social Care Bill – Competition Proposals  60 per cent of NHS budget to be transferred to GP commissioning consortia to commission the majority of local health services.GP commissioning consortia  Commissioning consortia required to obtain advice from health professionals but wider clinical involvement in commissioning process limited.  All commissioning consortia to be in place and operational by April 2013. GP practices to be members of GP commissioning consortia as a condition of their ability to practise.  No requirement for commissioning consortia and local authority boundaries to align.  Primary care and specialist services to be commissioned by the NHS Commissioning Board.  Part of GP practice payments to be linked to quality premium based on performance of GP commissioning consortia Latest Position  GP commissioning consortia re-named clinical commissioning groups, reflecting requirements for wider clinical involvement in commissioning.  Clinical commissioning groups required to obtain advice from a wider range of health professionals and will be supported by clinical networks and new clinical senates. Governing bodies must include a nurse and a hospital specialist  Clinical commissioning groups to be established either in full or in shadow form by April 2013, but take on their new responsibilities only when they are ‘ready and willing’. All practices still need to be members of a clinical commissioning group by this date.

13. delivering value to the NHS 13 © NHS Shared Business Services Ltd 2011 NHS SBS Changing Landscape  Changes in F&A since we last met  27 Reconfigurations  21 New Clients  In October  3 Reconfigurations  14 New Clients 150 Finance & Accounting clients  Over £41 billion payments / per annum  £12 billion of NHS debt recovered per annum  60,000+ trained users on the Oracle system 58 Payroll & HR clients  Paying 200,000 NHS employees  Processing 2.5 million payroll transactions per annum 16 Family Health Services clients  NE London sector – seven Trusts  East Midlands region – nine Trusts  GP practices, Opticians, Pharmacies and Dentists – 2.6 million transactions p.a. 50 Commercial Procurement Solutions clients

14. delivering value to the NHS 14 © NHS Shared Business Services Ltd 2011 © NHS Shared Business Services 2005 Payroll F&A Changing Landscape FHS CPS 40% of trusts are SBS clients Providing services to support 24M people

15. delivering value to the NHS 15 © NHS Shared Business Services Ltd 2011 What’s New with SBS  Services Scope  New Clients  New Platforms  New Reporting  Integrated Improvement Project  Increase in number of sites and people  Improved dividend paid to clients

16. delivering value to the NHS 16 © NHS Shared Business Services Ltd 2011 SBS Licence Fee

17. delivering value to the NHS 17 © NHS Shared Business Services Ltd 2011 Update on your feedback Issues  Communication  5 Queries  Overview of Invoice Status  Consistency of communication  Across suppliers  Across systems  Service Context  Knowledge about NHS SBS and the wider context  NHS SBS as a framework?  Process  E-invoicing  Emailed invoices  ADI files, etc  Invoice cost  Consistency of approach Proposed Solution  Communication  Self Help  Improved support system for Service Desk  Auto email information responses  Statement production  Customer Focus Groups  Service Context  Forum on-going activity  Linked-in/huddlespace  Procurement Planning horizon being developed by CPS  Process  E- invoicing solutions being investigated  Root-cause analysis with clients and suppliers  Process standardisation initiative

18. delivering value to the NHS 18 © NHS Shared Business Services Ltd 2011 How We Work…… Amount Check Introduction Front End Process Moving an Invoice through to Payment Payment

19. delivering value to the NHS Delivering value to the NHS 19 © NHS Shared Business Services Ltd 2011 Front End Operations

20. delivering value to the NHS 20 © NHS Shared Business Services Ltd 2011 Electronic PostScanVerify Return / Import Front end operations

21. delivering value to the NHS 21 © NHS Shared Business Services Ltd 2011 Electronic PostScanVerify Return / Import PostSortOpenBatchScan Post

22. delivering value to the NHS 22 © NHS Shared Business Services Ltd 2011 4.5M Volumes - 45% Team + 340% Productivity + 120% Scanning Post

23. delivering value to the NHS 23 © NHS Shared Business Services Ltd 2011 Portrait

24. delivering value to the NHS 24 © NHS Shared Business Services Ltd 2011 Landscape

25. delivering value to the NHS 25 © NHS Shared Business Services Ltd 2011 Post

26. delivering value to the NHS 26 © NHS Shared Business Services Ltd 2011 Electronic PostScanVerify Return / Import OCRIDCExtractVerify Scan

27. delivering value to the NHS 27 © NHS Shared Business Services Ltd 2011 Scan All Scanned Minimum Manual Processing Clear deskAudit

28. delivering value to the NHS 28 © NHS Shared Business Services Ltd 2011 Electronic Review ExtractAmendImport PostScanVerify Return / Import AcceptImportRejectReturn Verify

29. delivering value to the NHS 29 © NHS Shared Business Services Ltd 2011

30. delivering value to the NHS 30 © NHS Shared Business Services Ltd 2011

31. delivering value to the NHS 31 © NHS Shared Business Services Ltd 2011 Verify Target Quality

32. delivering value to the NHS 32 © NHS Shared Business Services Ltd 2011 ReviewLogCommunicate PostScanVerify Return / Import Electronic Return

33. delivering value to the NHS 33 © NHS Shared Business Services Ltd 2011 5% Returned Various Reasons 50K Reduction Increased cycle Turn Around Return

34. delivering value to the NHS 34 © NHS Shared Business Services Ltd 2011 Objectives Improve First time processing CommunicationQualityRework Turnaround time Reduce

35. delivering value to the NHS 35 © NHS Shared Business Services Ltd 2011 Electronic PostScanVerify Return / Import

36. delivering value to the NHS 36 © NHS Shared Business Services Ltd 2011 Options Invoice Data

37. delivering value to the NHS 37 © NHS Shared Business Services Ltd 2011 Electronic partner

38. delivering value to the NHS 38 © NHS Shared Business Services Ltd 2011 Email

39. delivering value to the NHS 39 © NHS Shared Business Services Ltd 2011 PostSortOpenBatchScan PrintSortMatch Email issues

40. delivering value to the NHS 40 © NHS Shared Business Services Ltd 2011 Productivity

41. delivering value to the NHS 41 © NHS Shared Business Services Ltd 2011 ReceiveSortOpenBatchScan PrintSortMatch Email solution EmailOCR

42. delivering value to the NHS 42 © NHS Shared Business Services Ltd 2011 Time line October Pilot End 2011 Review Early 2012 Rollout

43. delivering value to the NHS 43 © NHS Shared Business Services Ltd 2011 ReviewDesign ImplementEngage Monitor Quality and Customer Requirements Ongoing

44. delivering value to the NHS 44 © NHS Shared Business Services Ltd 2011 Questions…?

45. delivering value to the NHS Delivering value to the NHS 45 © NHS Shared Business Services Ltd 2011 Moving the Invoice on through the process

46. delivering value to the NHS Delivering value to the NHS 46 © NHS Shared Business Services Ltd 2011 Invoice received, scanned & entered on Oracle Coder/ Approver added Invoice routed via workflow Invoice reviewed & coded Invoice routed via workflow Invoice approved online £ Non PO Invoice Approval Process

47. delivering value to the NHS 47 © NHS Shared Business Services Ltd 2011 PO Invoice Process Order goods/ services Receives goods/ services Receipts goods/ services Approve requisition PO created Issue PO to suppliers Invoice received Invoice matched to PO £

48. delivering value to the NHS 48 © NHS Shared Business Services Ltd 2011 Purchase Order

49. delivering value to the NHS 49 © NHS Shared Business Services Ltd 2011 PO Holds  Quantity received hold  Quantity ordered hold  Maximum shipment hold  Awaiting credit note hold

50. delivering value to the NHS 50 © NHS Shared Business Services Ltd 2011 PO Holds  Distribution variance hold  PO matching hold

51. delivering value to the NHS 51 © NHS Shared Business Services Ltd 2011 Purchase Order

52. delivering value to the NHS Delivering value to the NHS 52 © NHS Shared Business Services Ltd 2011 Quick Break

53. delivering value to the NHS 53 © NHS Shared Business Services Ltd 2011 Payments Invoices ready to pay Bank Details CheckDuplicate Check Payment File For BACs Created Duplicate Check BACs File Despatched Remittance Advices Emailed Exception Checks Remittance Advices Faxed and Mailed Client Check Cleared Funds Creation of Cheque file Amount Check

54. delivering value to the NHS 54 © NHS Shared Business Services Ltd 2011 It’s Simple! Receiptsortopenbatchscanverify Match (PO) Allocate (non PO) Receipt (PO) Code/approve (non PO) BACs Payment Emailed Remittance Advice

55. delivering value to the NHS 55 © NHS Shared Business Services Ltd 2011 Communication  Essential for efficiency  When ineffective costly  Timing is key  Understanding of requirements  Setting right expectations

56. delivering value to the NHS 56 © NHS Shared Business Services Ltd 2011 Communication Linked In? www.sbs.nhs.uk/supplier-service-partnership