1. 1 Laboratory RFP Q & A session Simon Everitt / Joy Cooper Planning and Funding 18 th August 2006

2. 2 Overview of Process to date Consultation on options for Lab-April 2005 Consultation on options for Lab-April 2005 Board decision to go out to RFP-May 2005 Board decision to go out to RFP-May 2005 Delays due to Commerce Commission Delays due to Commerce Commission Planning and Development of RFP-Feb 06 Planning and Development of RFP-Feb 06 Draft RFP consultation –May 2006 Draft RFP consultation –May 2006 Final RFP released -31 July 2006 Final RFP released -31 July 2006 Closing of RFP-31 August 2006 Closing of RFP-31 August 2006

3. 3 DHBs Objectives Objectives for Laboratory Services WDHB: Best possible health outcomes for Wairarapa residents Best possible health outcomes for Wairarapa residents Efficient results, advice & support for best practice clinical decision making Efficient results, advice & support for best practice clinical decision making Integrated service spanning primary and secondary care Integrated service spanning primary and secondary care Clinically and financially viable Clinically and financially viable Works collaboratively with other services/stakeholders. Works collaboratively with other services/stakeholders.

4. 4 Overview of RFP RFP-Part 1-Key Points to Note Section A: Overview & Background DHB and Board Objectives and vision (5) & (10) DHB and Board Objectives and vision (5) & (10) Current providers of laboratory services Current providers of laboratory services Section B: Probity, Timelines & Terms Engaged a Probity Auditor to oversee process (26) Engaged a Probity Auditor to oversee process (26) Probity Plan-ensure good and robust process Probity Plan-ensure good and robust process Contract period – 5 years and 5 months 1 February 2007-30 June 2012 (34) Contract period – 5 years and 5 months 1 February 2007-30 June 2012 (34) Fixed price proposals covering all laboratory testing (35) Fixed price proposals covering all laboratory testing (35) Section C: RFP Requirements 14 copies due 31 st August 2006-non price information 14 copies due 31 st August 2006-non price information Separate copy due 31 August 2006-price information (42-46) Separate copy due 31 August 2006-price information (42-46) 22 August 2006 last day for additional information & clarifications (50) 22 August 2006 last day for additional information & clarifications (50) No canvassing-clarification has been provided (55) No canvassing-clarification has been provided (55)

5. 5 Overview of RFP RFP-Part 1-Key Points to Note continued Section D: RFP Conditions All information provided is confidential both ways (78) All information provided is confidential both ways (78) Must meet your own costs in preparing and submitting you proposal (79) Must meet your own costs in preparing and submitting you proposal (79) WDHB may require Ministerial Approval to any service change WDHB may require Ministerial Approval to any service change Section E: Evaluation Completing due diligence on RFP responses IT/clinical/financial 1-12 th September 2006 (96) Completing due diligence on RFP responses IT/clinical/financial 1-12 th September 2006 (96) Stage 1: evaluate ability to provide an effective service/collaborative relationships and demand management/reporting/strategic fit Stage 1: evaluate ability to provide an effective service/collaborative relationships and demand management/reporting/strategic fit Assessed individually and as a panel to agree a common assessment Assessed individually and as a panel to agree a common assessment Criteria and weighting applied Criteria and weighting applied If score 50 or more and have IANZ accreditation the provider proceeds to the second stage (90) If score 50 or more and have IANZ accreditation the provider proceeds to the second stage (90)

6. 6 Overview of RFP RFP-Part 1-Key Points to Note continued Stage 2: value for money and price-cash flows based on year 1-5 prices and total cost to the DHB (91) Stage 2: value for money and price-cash flows based on year 1-5 prices and total cost to the DHB (91) WDHB may hold discussion/negotiations with one or more proposers. WDHB may hold discussion/negotiations with one or more proposers. Section F: Notification Notified in writing either way Notified in writing either way Can be short listed but not preferred Can be short listed but not preferred Preferred provider does not constitute acceptance or create a contract. Preferred provider does not constitute acceptance or create a contract.

7. 7 Overview of RFP Appendices Appendix 2: Wai-Aro information Facility lease $75k PA (draft provided) Facility lease $75k PA (draft provided) Equipment can be purchased for $217,640 or leased for $78k PA Equipment can be purchased for $217,640 or leased for $78k PA Organisational structure and staffing costs Organisational structure and staffing costs Appendix 6: Price form and costing 1 fixed price (service fee) for all tests over 5 years 1 fixed price (service fee) for all tests over 5 years Costing breakdowns and assumptions required Costing breakdowns and assumptions required Appendix 7: Service & Quality Specification Questions from the floor Questions from the floor

8. 8 Overview of RFP Appendix 8,9,10:Tests Splits ID 3 categories of tests: 1. Community Referred Schedule Tests 2. Community referred Non Scheduled Tests 3. Hospital Referred Tests (IP & OP). Split in reporting to fit with HealthPAC national data collections.

9. 9 Laboratory Data Three components: 1. Wai-Aro test volumes-inpatients and outpatients 2. Community Referred Non Schedule Tests 3. Community Referred Schedule Tests

10. 10 Laboratory Data Issues: 1. No standardisation of test types 2. Different ways of counting tests 3. Different funding/purchasing arrangements 4. Variable availability of test information

11. 11 Laboratory Data Community Referred Test Volumes Issues: WDHB is not a Funder DHB in lab warehouse WDHB is not a Funder DHB in lab warehouse WDHB does not contract with 2 providers in the region WDHB does not contract with 2 providers in the region WDHB has more IDF volumes out of region c.f. other regional DHBs WDHB has more IDF volumes out of region c.f. other regional DHBsSolutions: Applied same methodology used by other DHBs Applied same methodology used by other DHBs Accessed data directly from lab warehouse Accessed data directly from lab warehouse Identified laboratory tests originating from the Wairarapa region Identified laboratory tests originating from the Wairarapa region DHB of Domicile (93) is equal to: DHB of Domicile (93) is equal to: 1. The DHB of patient if reported in the warehouse. If not reported then, 1. The DHB of patient if reported in the warehouse. If not reported then, 2. The DHB of referrer if reported in the warehouse. If not reported then, 2. The DHB of referrer if reported in the warehouse. If not reported then, 3. The DHB of laboratory. 3. The DHB of laboratory.

12. 12 Laboratory Data Risks… Potential for the Funder to over state community referred test volumes But… Funder is responsible for total lab test costs whether through IDFs or local contracts Funder is responsible for total lab test costs whether through IDFs or local contractsAnd… Majority of volumes are referred by local primary care providers (82% % 70%).

13. 13 Further information we have released 1. Canvassing clarification (3/8/2006) 2. Questions and Answers x 2 (11/8/2006 & 15/8/2006) 3. Minutes, ISSP for IT Q & A (11/8/2006) 4. Population Projections (15/8/2006) All information has been provided electronically and is available on the WDHB website.

14. 14 Reminder of Key Dates

15. 15 Discussion / Questions from the Floor