VP Quarterly Report on Strategies Q3– February 2, 2016 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

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

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.

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 Dec. 31, 2015

Increasing population and demographic changes resulting in growing demand for services Estimated cost of $70 million last 4 years 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 Planned investments to respond to growing complex and changing environment Physician leadership structure and service expansion Sask. Healthcare Management System (lean structure) 3sHealth shared service opportunities High levels of internal movement of staff causes increased overtime due to filling vacant lines at overtime rates and increased orientation time Occupancy is consistently higher than the 95% target resulting in increased staffing costs, much at overtime rates Financial Deficit Root Causes

VP Accountability – monthly budget report outs Communication Strategy – shared responsibility and accountability Strategic priorities – Efficiency Target Initiatives (ETI) steering committee Long-term sustainability – 11 budget reduction initiatives Workforce Optimization Task Team (WOTT) Improvement work throughout the organization Financial Sustainability Getting to Green

Monthly Report Outs Financial Visibility Wall – Coming Soon to an Intranet Site Near You Financial Visibility Wall Region Information at a GlanceDeficit Mitigation Strategies As of December 31, 2015:TargetActualProjectedVariance InitiativeLead VPTargetActualProjected Surplus/Deficit$0($10,141,091)($14,031,000) Procurement contractsPeters$2,500,000$2,250,000$2,800,000 FTEs (110) Surgical initiativesGarratt$8,000,000$5,685,000$8,000,000 Vacation Carryforward Hours0298,348?? VAC bedsRedenbach$1,300,000$1,200,000$1,300,000 AppropriatenessMcCutcheon$1,000,000$0 Paid Hours Info as of Week 42: % change fav/(unfav) Quality and safetySmadu$1,000,000$800,000$1,000,000 Total paid hours (target - decrease of 1.87%) 12,543,817 12,657,367(0.91%) Patient flowCalder$1,000,000$0 Overtime (target - decrease of 33%) 293, , % ACSCEarnshaw$3,000,000$569,000$750,000 Sick (target- decrease of 15%) 542, , % Orientation reductionCullen$1,300,000$488,000$650,000 Orientation (target - decrease of 20%)183,677164, % Sick time reductionCullen$2,500,000$300,000$400,000 Overtime reductionPeters$3,929,000$965,000$1,300,000 Portfolio Information at a Glance Workforce optimizationCullen$12,740,000$1,500,000$2,000,000 Unanticipated revenues (WCB, Benefits)$0$4,800,000$6,000,000 Portfolio net variance statementPortfolio net variance chart Totals $38,269,000$18,557,000$24,200,000 (A) (B) Portfolio FTEsPortfolio results reports Projected deficit (A-B) $14,069,000 Portfolio Vacation Carryforward Reports Workforce Optimization Team Portfolio Paid Hours Key Service Metrics Task Team A3 WOTT Report Presentation1D NewspaperHemo Newspaper 6F Newspaper WO FTE Survey Service Volume and Operation Data Communications Employee / Physician Engagement Monthly Financial Update

11 Initiatives Update

Financial Sustainability Questions?

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.

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.

Significant facility infrastructure deficiencies identified across the province requiring significant sustained investment RQHR Facility condition assessment –Average FCI 31.5% on assessed asset value of $1.6 billion –FCI > 15% is considered deficient for health care Minimal annual funding to address deficiencies and no multi-year funding commitments Maintenance and Repair –Estimated Required funding $50.2/ year –Actual funding $5.2m/ year Capital Renewal –Estimated required funding $23.8/year –Actual funding received $0 but ad hoc Facilities Strategy RQHR Challenges

–Infrastructure is our Board of Directors # 1 advocacy priority –Electrical renewal – RGH and PH –Energy projects – PH and WRC –Long term care planning (Pioneer Village / Grenfell risk and contingency planning) –Real estate initiatives –Space management – space advisory committee –Infrastructure committee expanding – capital planning Facilities Management Updates

Facilities Strategy Questions?