Paper BSO 58/2015
Proposal to Relocate GP Payments Service from Ballymena to Belfast Offices
1.0 Executive Summary and Board Approval Required
1.1 The FPS Directorate has now implemented new payment systems for independent contractors, (specifically Pharmacists, Dentists and General Practitioners) and the project has moved into the benefits realisation planning and implementation phase, as set out within the approved business case. This paper seeks approval from BSO Board to endorse the proposal to deliver some of these benefits through the consolidation of the GP Payments function onto one site in Belfast, resulting in the withdrawal of BSO from County Hall premises in Ballymena. The preferred option is based, on an option appraisal and principles of potential benefits and disadvantages of a number of options summarised within this paper. The final recommendation has also been Equality screened.
2.0 Background
2.1 The primary objective of the Family Practitioner Payment System (FPPS) project was to reduce the risks that had developed as a result of the multiple secondary systems in place within FPS supporting the payment of independent contractors. The business case identified workforce savings (WTEs), as a result of the technology advancements on how payments will be transacted and will be implemented in two phases. Phase 1 will deliver £160k annualised savings by releasing circa 7 WTE staff, reduction in WTE staff is due to automated and/or enhanced payment processes within the BSO FPS payments team. Phase 2 will deliver a further annualised savings of £189k by releasing circa 9 WTE staff. Reduction in WTE staff within Phase 2 is dependent on full take-up of the web-based portal by independent contractors e.g. practice staff being able to run reports rather than requesting such information from BSO staff.
2.2 The following principles will be observed throughout both phases of full systems implementation and benefits realisation, and are that:-
2.2.1 Payments will be made accurately and on time, and all related activities will be delivered in accordance with the Service Level Agreement.
2.2.2 The employment status of Permanent employees will be protected wherever possible although redeployment may be necessary.
2.2.3 The implementation of FPPS will be delivered as efficiently as possible.
2.2.4 Employment Equality obligations will be observed.
3.0 Options Appraisal summary for FPS Payments Function
3.1 FPS Payments Services are currently delivered from two geographical sites, Belfast (Dental, Ophthalmic & Pharmaceutical payments) and Ballymena (GP payments). The ability for GP Practices to submit claims via the portal in the new system will significantly reduce the number of staff required to carry out the GP Payment function. As a result, it is opportune to consider consolidation of the FPS Payment function onto one site. An options appraisal and equality screening were completed. Based on the advantages and disadvantages of each option identified, Option 2 is the preferred option, as it meets all principles set out above. It proposes to consolidate the payments team onto one site in Belfast, offering staff the opportunity to work in Belfast or to be redeployed as appropriate.
3.2 This option reduces management overheads, whilst enabling
· multi-skilled, cross- team working,
· close proximity of support to the new payments systems.
· more flexible working across teams, in the event of leave cover and unforeseen circumstances. Below provides a summary of the appraisal.
Advantages / Disadvantages / SummaryOption 1: Function and staff to Belfast / · Retention of the staff and therefore the knowledge of the payment function reduces the risk of payment-related errors through the replacement system. (Principle 1)
· All FPS functions would be co-located, creating greater flexibility for the management of work and potentially reducing management costs whilst enabling services to continue to be delivered in line with the SLA. (Principles 1 and 3)
· Potential for savings in the cost of managing the GP Payments function (estimated in the region of £70k). (Principle 3)
· No requirement for BSO to find alternative employment for staff (Principle 2) / · BSO will be liable for travel costs in the region of £106k (Principle 3)
· In the event of staff not being able to follow function, there is the potential for voluntary redundancy costs (approx. £209k) if suitable alternative employment can’t be found (Principle 3)
· Potential to not meet Equality obligations (Principle 4) / Meets Principles
1 , 2 in full and partly meets Principle 3
Three negative impacts in accordance with principles, two in respect of Principle 3, and may not meet Principle 4
Total potential costs may be in the region of £209k
(Travel/ voluntary redundancy)
Option 2: Function to Belfast and staff redeployed as appropriate / · All FPS functions would be co-located, creating greater flexibility for the allocation/management of work (Principles 1 and 3)
· Potential for savings in the cost of managing the GP Payments function (estimated in the region of £70k). (Principle 3)
· BSO will not be liable for travel costs in the region of £106k. (Principle 3)
· Meets Equality obligations
(Principle 4)
· Potential to redeploy as posts become vacant (Principle 2) / · There will be a requirement for BSO to find alternative employment for staff (Principle 2)
No or minimal additional costs / Meets Principles 1, 2, 3, 4
One negative impact in accordance with Principles
No or minimal additional costs
Option 3: Function and staff stay in Ballymena and work diverted / · Retention of the staff and therefore the knowledge of the payment function will reduce the risk of payment related errors through the replacement system. Services to continue to be delivered in line with the SLA. (Principles 1 and 2)
· BSO will not be liable for travel costs in the region of £106k. (Principle 3)
· Meets Equality obligations (Principle 4) / · All FPS functions would not be co-located, reducing the flexibility for the allocation of work.(Principle 3)
· Diversion of tasks from other payment areas is likely to increase risk in relation to those areas. (Principle 1 )
· There will be a loss of opportunity for FPS to reduce management costs to the extent of £70k. (Principle 3)
· Tasks that can be diverted are likely to be those associated with normally performed by lower grades banded staff. (Principle 3).
· There are no rent and rates charges for the current location but that situation is subject to change. This would put Principle 3 at further risk.
· Costs to train staff to develop competency in work to be transferred / Meets Principles 1, 2 and 4 but puts Principle 3 at risk
Five negative impacts in accordance with Principles
4.0 Actions to Date
4.1 A full Benefits Realisation project plan has been developed and will be presented to FPPS Project Board on 27 May 2015.
4.1.1 Engagement with staff and their TU representatives on these proposals commenced on 01/05/2015. Formal consultation will continue with the Trade Unions.
4.1.2 Business processes workshops across all of the functional areas have commenced.
4.1.3 Direct engagement with Ballymena staff (formal one-to-one meetings) and their trade union representatives took place on 12 May 2015 to make them aware of the proposals this meeting covered the options available to them including redeployment to Belfast and potentially over a period of time within the Ballymena area.
5.0 Workforce implications
5.1 This proposal will impact on the following staff:
Band / Headcount / Wte8a / 1 / 1.00
5 / 2 / 2.00
4 / 3 / 2.00
3 / 4 / 3.6
5.0 Governance
5.1 The governance and progress of the FPPS project along with the realisation of business case benefits will continue to be monitored through the FPPS Project Board, chaired by the Project SRO. Membership of this Board will be reviewed post the GP System Go-Live in May 2015.
6.0 BSO Board Approval Required:-
6.1 On 29 April 2015 BSO SMT agreed the preferred option subject to consultation as outlined above to transfer the work from Ballymena and also agreed that as BSO posts become vacant, consideration is given to the redeployment of FPS staff within BSO as necessary. Approaches will also be made to explore the possibility of finding alternative posts in the Ballymena area for those staff who do not wish to transfer with the work.
6.2 The Board is asked to approve option 2 above in order to fully realise the benefits of systems implementation.
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