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Procurement and reacquisition/sale relating to operations at St. Göran's hospital

Background

At the end of 2012 the healthcare agreement between Stockholm County Council (SLL) and Capio for the operation of St. Göran's hospital expired. To ensure that the population of Stockholm county continued to receive emergency care at St. Göran's hospital, SLL needed to evaluate and define what care would be produced at the hospital, as well as developing a strategy for who would be responsible for providing the healthcare.

The challenge

Sirona was given the assignment of acting as a strategic and operational advisor for the procurement and reacquisition/sale of activities at St. Göran's hospital. The procurement was assessed as being one of the world's largest emergency hospital procurements.

Implementation

Sirona developed a framework for best practice within business analysis procurement of health and medical care and healthcare-related services. Our team carried out extensive healthcare analyses according to the framework in order to understand costs and quality for the hospital's activities on an in-depth basis. For example, an extensive analysis was carried out of all healthcare data within SLL regarding production, quality, patient mix and cost outcomes. Sirona also carried out extensive analysis of medical and economic administration, a review of performance statistics and an analysis of compliance with quality indicators. During the entire project, Sirona worked in close collaboration with the client SLL through continuous assessments. The work was led by SLL's internal team. In its advisory capacity, Sirona's team collaborated with a number of SLL's other contractors, such as Setterwalls Advokatbyrå and KPMG.

Results

The results showed that the total turnover during the first year was approximately 120 million SEK lower than previous years; a reduction of costs by around 10%. SLL also created a new organisation for operating St. Göran's hospital and the same actor as previously was engaged to deliver the healthcare services. The comprehensive overview of the hospital activities showed high quality and low costs. Sirona's work contributed to creating genuine competition regarding the tender and consequently high quality for an attractive price for SLL.