VP Quarterly Report on Strategies Q3– February 2, 2016 Robbie Peters,

1. Vision: Healthy people, families and communities. VP Quarterly Report on Strategies Q3– February 2, 2016 Robbie Peters, Vice President, Financial Services & Chief Financial Officer

2. Portfolio Overview • Finance • Accounting & Financial Reporting • Payroll & Benefits • Decision Support • Facilities Management • Materials Management

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

4. Financial SustainabilityProvincial Outcome 2015-2016 • 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.

5. Financial SustainabilityProvincial Targets 2015-2016 • All health system partner organizations will be in a balanced or surplus year-end financial position in 2015-16. • Shared services activities will produce $10M net new savings in 2015-16

6. Financial Sustainability – RQHR Results as of Dec. 31, 2015

7. Financial Deficit Root Causes • 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

8. Financial Sustainability Getting to Green • 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

9. Monthly Report OutsFinancial Visibility Wall – Coming Soon to an Intranet Site Near You

10. 11 Initiatives Update

11. Financial Sustainability Questions?

12. 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.

13. 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.

14. Facilities Strategy RQHR Challenges • 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

15. Facilities Management Updates • 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

16. Facilities Strategy Questions?