Overview
When was the pricing model introduced?
The model has been in place since 1 July 2023
Standard Orders
Standard orders are charged at an agreed rate per line item, plus a fixed monthly amount charged to each HHS.
Financial Sustainability
This pricing model underpins the financial sustainability of Queensland Health’s supply chain, helping us provide a resilient and reliable supply chain service to customers.
Processes
As our processes mature, there will be opportunities to improve the model to ensure it remains fit for purpose and continues delivering value and benefit to the Department and HHSs.
Name of the tool to grind substances in a motar?
Pestle
What does a fee for service model mean?
A fee for service model means customers are charged a fee for services provided by the Department of Health
Fixed Charges
The fixed charge varies for each HHS, relative to the volume of hospital activity. Finance Business Partnering Unit determine the amount to be charged based on the weighted activity unit of the previous financial year.
Transparency for HHSs
It makes pricing transparent for HHSs and other customers by charging an agreed amount for orders placed to the distribution centres and regional warehouses.
Automation
The first iteration of the model uses existing technology functionality to charge customers for services provided. There are limitations which has resulted in manual workarounds for parts of the process. Ideally, in future the Pricing Model will be automated and fully supported by technology.
What year was the movie Titanic released?
1997
What services are covered by the model?
- Orders of medical consumables and other suppliers from the DCs and RWs
- Delivering the stock
- Support services provided by Supply Chain Surety Branch
Off Variant and Urgent Orders
Off variant and urgent orders are charged at a higher rate. This reflects the additional time, effort and resources it takes to supply orders outside of the regular schedule.
Cost Recovery
It also enables the department to recover the actual cost of services provided.
Feedback on the model
The initial version of the model was implemented so the Department and HHSs can start getting the benefits of cost transparency sooner and gather feedback to continually improve the model.
March
Are there service agreements?
Yes - service agreements where developed to show the services and associated service level agreements that will be supplied in exchange for the agreed rates.
A detailed breakdown of charges are available in the service agreements.
Who processes the charges?
Finance Business Partnering Unit process the charges through intercompany journals at the end of each month.
What has happening before the pricing model?
Previously, the department provided services to HHSs at a fixed amount which didn’t account for ordering activity or volume. This model lacked the detail and transparency needed to properly manage costs and drive efficiency improvements.
Pricing Model working group
A working group of Chief Finance Officers from HHSs and key stakeholders from Supply Chain Surety Branch will meet in November 2023 to discuss implementation and performance of the model so far, as well as any changes to be considered for Financial Year 2024.
From what grain is the Japanese spirit Sake made?
Rice
Collectively, we now have better visibility over operating costs, enabling both the Department and HHSs to monitor and address unnecessary costs.
Do other SCSB service lines have a pricing model?
Yes. This brings Supply Chain Services and Transport and Logistics Services in line with the rest of Supply Chain Surety Branch who have similar pricing models in place.
One of the improvements being considered is how S/4HANA can be utilised to automate the end-of-month charges.
Which tennis grand slam is played on clay
The French Open