Case Study #1: Healthcare Shared Services

Posted Jan 1st, 2015 in Case Studies

Case Study #1: Healthcare Shared Services

Project: Startup of regional shared services organization -Healthcare


Hospitals in Central Ontario retained the firm to finalize a business case for creation of a new stand-alone organization to provide “procure to pay” services. Completion of the business case required collaboration with 6 separate organizations to agree on staffing impacts, costs and benefits for each stakeholder. The business case was approved by all of the hospital Boards, affected LHIN’s and the Ministry of Finance in March 2008.

Key Considerations:

  • Implementation of a web-enabled technology platform to enable remote e-requisitioning, centralized invoice payments, centralized contract database and a shared item master file
  • Definition, mapping and system configuration to support a single process for the shared services organization, interfacing correctly with 6 distinct hospital processes and General Ledgers
  • Selection and equipping of a service centre to house the new organization
  • Hiring and training of approximately 30 new staff
  • System startup, stabilization, and transition to an ongoing customer –focused services organization

Results Achieved:

The project started up 12 months after approval, and ramped up to the expected transaction volumes over a period of 9 months through 2009. Implementation costs were below budget, while cost savings in the region of $3M per year exceeded the estimates in the business case. Member investments were repaid within 2 years.

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