Review Report For New Royal Adelaide Hospital: Mitigation Strategies And Best Practices For Procurement Management

Introduction summary

Discuss about the Review Report for New Royal Adelaide Hospital Report.

This report depicts the role of private partnership hospital projects that are strictly focused on developing modern healthcare facilities in the southern zonal area of Australia. It is the role of the healthcare industry to deliver effective service to both the patients and diagnostics. By the end of 30^th June, (2015) from the supplementary report was prepared by New Royal Adelaide Hospital. The Public Private Partnership (PPP) is the arrangement that has been used by the hospital sector for improving the details service opportunity of the hospitality sectors (v et al., 2016). This hospital sector has give specific focus on the project governance, risk management, budget related reports and their business planning. It has been assumed that if all these factors professionally assumed and analyzed then the expected business outcome can be generated from the planning (Saunders & Carter, 2017). Proper contract administration and procurement management approach are the other things those are properly utilized while producing the report for this specific hospital.

While analyzing the details of committee level improvement it has been found that for giving better understanding for the consequences and nature of service different strategic risks are being identified those need immediate mitigation strategies. The business case developed for this hospital also lags some critical parameters such as scope, benefit, risks and scopes as well (Turner, 2017). Supporting risk register has also been prepared to identify the risks and to create their related mitigation strategies. Risks have been identified in terms of state funding works, clinical services (with health practitioners, doctors, nurses etc), ICT enterprise systems of the hospital. The other risks those have been identified regarding this include the following:

• Delay in project delivery due to high cost
• Unable to meet the PPP contractual requirements
• Improper claim management
• Industry level disputes and undefined correlation to new RAH site
• Deficient well trained staffs
• Inadequate delivery of hospital sustainable model for patient care
• Inaccurate strategic direction and misalignment to the health care change policies
• Improper transition planning, resource capability and resource planning
• Improper RAH ICT integration, delivery framework and integrated testing approach

It is experienced that with professional leadership and governance the current business scenario of the hospital can be influenced. The operation of the RAH board must be refocused by refining the roles of senior resources (Edler et al., 2015). The leaders must prepare accurate progress reports to let the team members familiar with the project goal and to govern the project towards success. The assurance framework designed for the hospital was very weak and requires specialist advisors to make the process an error free one.  

After reviewing the case study of “New Royal Adelaide Hospital” it has been found that there are certain complex issues those needs successful strategies for mitigation the identified issues. Through these strategies the procurement and contract management related issues can be resolved (Hawkins et al., 2015). A wider responsibility from the resources is required for the successful implementation of the hospital objectives. The risks and their relevant mitigation strategies are illustrated in this below section:

Risks	Responsible resources	Changes to procurement brief	Project specifications	Mitigation strategies
Delay in project completion	Professional project owners	In order to streamline and automate the procurement solution over spend the influence must be increased accordingly.	It can enforce the complaint purchase through making it easier for the employees. With an auditable purchase this system can implement corporate spend management policies.	In order to mitigate this risk the project owner should estimate the total time and budget properly to avoid budget overrun and time overrun (Edler et al., 2015)
Overrunning project budget	Finance manager	Improvement in efficiency and automate source to settle procurement processes	The traditional manual process will be turned into automated, streamlined, and standardized system with the help of professional management (Hawkins et al., 2015).	The hospital audit team should prepare the project budget to measure the project feasibility. From the feasibility report the management team will come to know about whether the project is beneficial or not.
Failure in meeting the PPP requirements	Company owners	Improvement in suppliers management	With the hospital code of conduct the potential capabilities, viabilities, compliances of the suppliers will be improved.	The operating team must adopt standard project agreements and additional support from the government to make sure that all the norms and regulations are properly followed by the hospital authority (Kerzner &Kerzner, 2017)
Inadequate management claims and industrial disputes	Management head	Change requested in the industrial resource management and sourcing management	If the hospitality industry specifically identifies their claim management system for improving the insurance policy details for their patients then the number of frauds will be automatically reduces and	In order to operate the functionalities and management it is required to adopt proper managerial details addition to industrial disputes. As soon as the disputes will be identified that much faster the recovery strategies will be able to be developed (McLaughlan, Pert and Bennetts, 2017).
Absence of well trained staffs	Human resource manager	Development of effective collaboration	With internal collaboration the processes will be come much easier to implement. In addition to this, the embedded collaboration leads the assignment towards fast completion and also the processes facilitate the real time documents reviewing, authoring for final approval.	Professional on job training and development programs should be arranged by the hospital authority to make them more focused to their job roles and efficient.
Inadequate delivery of healthcare ICT system	Operation manager	Transformation of traditional business process rather replacement of the traditional system with advanced ICT system	Digitized system will reduce the complexity with advanced modern technologies. The claim management is too vital to give success to both the large and small companies within the insurance industry. In order to void legislation and for lowering the overall cost incorporation	Besides the medical experts to improve the service quality of the hospital, professional technical IT experts and technical team should be formed to keep the ICT system up-to-date and advanced (Mignone et al., 2016 ).
Misalignment with the heath-care policy	CEO of New Royal Adelaide Hospital	Change to the professional contract management	With the help of social collaboration the pre determined factors in terms of price, value and quality will be improved accordingly.	Professional governmental health care policy details should be followed and adopted by the hospital authority to make sure that the system is running error free.  At the very initiation phase proper alignment must be developed followed by the healthcare policy. It will reduce the rate of man made errors, functional and operations errors.

Strategic risks and mitigation strategies for New Royal Adelaide Hospital

The supply side performance of the hospital should be improved accordingly to increase the competitive advantages and the commercial revenue of the company. A modular procurement software suite must be utilized by the hospital for improving the overall system. A contract management for SRM, tenders towards sourcing and benefits realization are the other components must focused by the authority to identify and minimize the other disputes (Oluka and  Basheka, 2014). The best prcatices for the contract and procurement management are as follows:

Establishes governing supply chain council: The purpose of the governing council is to direct the business strategies towards success. It will help the company to improve their overall business approach by tendering unique services simultaneously. The membership of the council should involve the supply chain leaders and corporate executives also.  The councils are also needed to hold regular basis meetings for their members. This mere existence indicates that the supply chain management has proper support as well as commitment to their senior leadership (Palaco, Avendaño and Núñez, 2015). The obstacles that act as barriers to the key success of the hospital can be removed accordingly to improve its service capabilities and corporate chain strategies. Through procurement and contract management an accurate bridge can be established between the supply chain strategy and corporate strategies. The hospital can also avail cross functional communication through this application. Operational consequences can be avoided through the professional business units.  

Proper alignment between the staffs of the organizations:  The staffs working for the New Royal Adelaide Hospital are needed to have proper alignment between their staffs to make them more engaged to their responsibilities. Besides centralized strategy the company should adopt hybrid approach fort their organizations (Rendon and Rendon, 2015). With the help of the procurement and contract management system the staffs working for the company will start behaving more professionally with advanced current thinking approach.  This approach follows purchase to pay process which helps to grab more number of consumers and it also increases the overall security of the organization.

Interact level prcatices are mentioned below:

Effective working technologies: The New Royal Adelaide Hospital should implement ICT working technologies to make their system more effective and efficient for their employees. In order to make the ICT technologies more effective most of the times the companies adopt proper software license (Saunders and  Carter, 2017).  Proper structure of the chosen process and their detail workflow helps to improve the business skills and knowledge of the employees who are working for the company.

Best practices for contract and procurement management in PPP

Role of the project manager:  For this specific PPP technology the project manager is responsible to control and monitor the entire project. For monitoring the project success its progress details reports are also needed to be followed by the project manager  and the project manager is also responsible to do these activities. 

Role of the procurement manager:

• Evaluation of the raw material suppliers for the New Royal Adelaide Hospital
• The vendors should be interviewed
• Visit to both the supplier’s plants and the material distribution centers
• Attending the trade shows along with conferences and meetings
• Negotiation of different contracts
• The financial result and the price proposal of the company needs unrolling analysis
• To create professional collaboration along with the staffs standards
• Unrolling contract monitoring and evaluation
• Maintenance and review of the already bought items

I have learned that, the procurement management is referred to as a technique rather tool that is generally used by most of the industries for increasing the overall commercial success and profit of the company. Though for different industries the role of procurement management varies and also for the healthcare industry the procurement and contract management system differs. I have identified that, the aim of New Royal Adelaide Hospital is to improve the quality of service for the doctors, patients and other employees who are working for the company.  I think that for any healthcare organization the responsibilities and roles of the supply chain and procurement should be clearly defined by the project heads. I have found that the current issues related to innovation and supply chain should be addressed in such a way so that it can be avoided easily. After reviewing the details of the hospital activities I have also identified another aim of New Royal Adelaide Hospital is to identify and mobilize the opportunities for the clinical providers, leaders and patients. I have also realized that with a successful procurement management approach throughout the entire lifecycle highest values could be gained by the businesses through value positioning. I think that the global procurement and supply management must be followed by the project managers and procurement managers to ensure that the project will be successful for the healthcare industry. I think that the value based procurement is another component that should have to be followed by the procurement managers are innovative tendering criteria maintenance, total care for the project cost, feedback from the patients and risk sharing arrangement. From the complete learning I have found that whether the ICT technology running by New Royal Adelaide Hospital is effective or not must will be measured through analyzing the feedback those have been generated by the patients and doctors as well. I have identified that the ICT system increases the functional and operational effectiveness and efficiency of New Royal Adelaide Hospital if all the criteria are properly maintained by the company head. Economic prosperity is another purchasing program must be followed by the hospital authority to manage the healthcare services. Two different policies those are needed to be widely maintained include safe disclosure and whistle blower policy.  Though, I faced certain issues while analyzing this review but with the successful completion of the review of New Royal Adelaide Hospital details I have learned that ICT is the only technology that increases the business efficiency of any industry.

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