National Health Service Business Benefits
(Paul Davies)
NHS trusts in Wales primarily manage secondary care services, although some trusts are national or regional centers for more specialized care. Trusts also employ most of the NHS workforce?including doctors, nurses, and dentists, as well as its therapists, technical and support staff. The NHS is funded primarily by the taxpayer, and is therefore accountable to the Welsh Assembly. Cardiff & Vale NHS Trust was formed after the merger of Cardiff Community NHS Trust, the University Hospital of Wales, the Dental NHS Trust and Llandough Hospital NHS Trust. The newly created trust serves the most populous areas in Wales. It handles an average of 700,000 patient visits each year at its nine hospitals, 24 health centers, as well as numerous community locations, or in patients? homes. To deliver this care, the trust employs 11,500 people and works within an operating budget of £500 million (US$907 million) a year. As a part of the United Kingdom?s extensive National Health Service (NHS), Cardiff & Vale NHS Trust in Wales has a dual mandate: deliver high quality care to all its citizens and ensure that their taxes, which pay for the system, are spent wisely. Each trust is also responsible for developing a strategy on how to improve services to patients. In 1999, Cardiff & Vale NHS Trust joined with 11 other Welsh trusts in mapping out a course that would eventually unite the trusts on a common e- business infrastructure. Such a system, the trusts determined, would trim waste and bring uniform accountability to key business processes, particularly in the area of procurement and payment processing. Collectively, Wales NHS trusts spend some £3.8 billion (US$6.8 billion) annually. As a first step, Cardiff & Vale NHS Trust is investing £2.3 million over five years on a selection of Oracle procurement, financial, and portal technologies designed to improve financial management, automate procurement, drive out maverick spending, reduce supply chain inefficiencies, and give the trust more leverage in negotiating bulk purchasing agreements. Cardiff & Vale?s decision to invest in new procurement and financial solutions was spearheaded by the trust?s director of finance, Paul Davies who saw the possibility of deriving immediate and long-term gain from greater efficiencies. Davies' team felt that these process efficiencies, if substantial enough, would offset the extra cost of a leading edge solution. After studying its supply chain, billing, procurement, receivables and financial management processes, the finance and procurement team conservatively estimated the trust could save more than £1 million over eight years. ?We had no choice but to make the change,? Davies said. The change also serves possible wider organizational objectives of eventually running an ?all Wales, Health? online buying collective and other shared initiatives on a single instance of a single database. The first step was to arrive at a consensus concerning a vendor, and, according to Davies, ?the majority of trusts agreed on Oracle.?
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