VP Quarterly Report on Strategies Q1– June 23, 2015 Robbie Peters, Vice President, Financial Services & Chief Financial Officer Vision: Healthy people, families and communities.

Portfolio Overview Finance –Accounting & Financial Reporting –Payroll & Benefits –Decision Support Facilities Management Materials Management 2

Multi-year Strategic Plans VP is Leading on: Financial Sustainability Strategy Multi-year Plan Facilities Strategy Multi-year Plan 3

Financial Sustainability Provincial Outcome By March 31, 2017, Ongoing, as part of a multi- year budget strategy, the health system will bend the cost curve by achieving a balanced or surplus budget. 4

Financial Sustainability Provincial Targets All health system partner organizations will be in a balanced or surplus year-end financial position in Shared services activities will produce $10M net new savings in

Financial Sustainability – RQHR Results as of May 31,

Financial Sustainability – Shared Services Reported at PLT Wall 7

Carry forward of financial deficiencies of prior years Continually exceeding budget by approximately 140 FTEs High level of employee movement Reduced funding over last 5 years through efficiency targets in an effort to bend the provincial costs curve In the range of $60 - $70 million Increasing population and demographic changes resulting in growing demand for services Estimated cost of $70 million last 4 years Planned investments to respond to growing complex and changing environment Physician leadership structure and service expansion Sask. Healthcare Management System 3sHealth shared service opportunities Financial Sustainability RQHR Challenges 8

Board Approved Priority Areas - Quality and Safety - Patient Flow - Primary Health Care - Mental Health and Addictions Long-term Sustainable Initiatives RQHR continues to focus on developing a strong and sustainable foundation 11 initiatives addressing $38 million deficiency 5 initiatives of ETI steering committee (some overlap with 11 initiatives) Diligent Daily Management s hared responsibility and accountability for all decision makers on daily decisions we make Financial Sustainability Recap of Strategy Implementation 9

Recap of regional focus to a balanced budget and reducing long-term cost structure Priority focuses and preliminary targets to achieve a balanced budget in

1.Management Capacity 2.Accountability Frameworks 3.Master Roster Reviews 4.Overtime Deep Dive 5.Workforce Optimization Reminder of Efficiencies Targets Initiatives (ETI) Steering Committee Focuses 11

Significant budget challenge ahead of us – creating a mechanism to monitor and report on success of the $38M deficit mitigation strategies and ETI work Monthly SLT and Finance/Business Manager budget meetings Wall walk format Trialing a virtual wall next week and will be rolled out widely when ready – want to make this work visible to the organization and other stakeholders Continue to build on the themes of Accountability and Shared Responsibility throughout the organization Monthly meeting and virtual wall will also hold VPs accountable through monitoring and reporting of portfolio financial results, paid hours, service volumes, etc. Daily management by everyone is key to our success Continue to support and lead initiatives such as 3sHealth business cases Continued commitment to on-going continuous improvement work (lean, other) Exploring options to develop a temporary dedicated task team to address immediate financial challenges and operational outliers Financial Sustainability Going Forward 12

Financial Sustainability Questions? 13

Facilities Strategy Provincial Improvement Outcome By March 31, 2017, all infrastructures (IT, equipment & facilities) will integrate with Provincial strategic priorities, be delivered with a Provincial plan and adhere to Provincial strategic work. 14

Facilities Strategy Provincial Improvement Targets By March 31, 2016, have delivered results on 3 high impact capital areas that address high risk for critical failure using alternative funding/delivery options. By March 31, 2016, common criteria and options for investing are used to vet all capital investments. 15

Provincial Model - Infrastructure 16

Provincial Deliverables - Infrastructure 17

Provincial Timeline - Infrastructure 18

Lack of Regional involvement in provincial strategy and targets development and related action plans Improvements needed in developing RQHR specific facilities outcomes and targets which link to provincial and other RQHR strategies Traditionally focusing on upcoming priorities for the department Initiating work with KPO and SPBIU to further develop a comprehensive strategy plan for Facilities Management Significant facility infrastructure deficiencies identified across the province requiring significant sustained investment Minimal annual funding to address deficiencies and no multi year funding commitments Facilities Strategy RQHR Challenges 19

Immediate to Short-Term: Working with KPO and SPBIU to enhance overall strategy and action plans Development of comprehensive capital plan to address most critical areas over the next 3 years and beyond including: Optimization of annual capital funding to address greatest operational risks while maximizing ROI ($5.3 million for ) Advancing major capital renewal of critical electrical systems at PH and RGH and energy upgrades at PH and WRC Advancing renewal and building capacity of residential, primary care and community infrastructure Planning workshop in the next quarter with Board/SLT and other stakeholders to develop an action plan to advance the most critical areas identified above Facilities Management Going Forward 20

Immediate to Short-Term (continued): Department restructuring to better respond to organizational operational and capital project requirements, risk mitigation and maximizing return on investments for limited dollars available to us, and capitalizing on market opportunities Developing / enhancing policies and procedures on space planning, utilization and alterations Longer-term: Taking a longer term outlook on aligning our facilities, property and infrastructure management ‎to optimally sustain, critically enhance and strategically support change and innovation to increasing demands of better health care for our communities Facilities Management Going Forward 21

Facilities Strategy Questions? 22