Creating the infrastructure for effective replacement planning

Client

Chelsea and Westminster Hospital NHS Foundation Trust

The challenge

The Trust has a significant backlog of equipment replacement but was finding compiling an effective plan challenging. This was exacerbated by having the relevant data split across multiple spreadsheets and databases across the Trust. They knew what equipment they had, but few of the stakeholders – from clinical engineering to clinicians and from procurement to finance – had oversight of the relevant data, such as commissioning dates and associated costs.

The Trust asked us to help them develop a detailed replacement plan. The first stage of the project was to gather the relevant data required for an effective plan and populate our OPTIMiSe Replacement Planning system.

The approach

We liaised with Clinical Engineering and Finance to collate all the data for two departments; radiology and endoscopy.

  • We populated our proprietary Replacement Planning system with all the relevant data related to existing assets, including age, commissioning date, original investment and all associated costs including contracted maintenance and ad-hoc costs.
  • We also worked with Clinical Engineering to develop a risk matrix to highlight the replacement priorities.
  • We then reviewed this information along with the market data we hold which allowed us to allocate indicative future costs for the assets, including maintenance costs, asset resale values, life expectancy, or decommissioning and return costs.
  • Based on our benchmarking data, we also supplied funding comparisons for upcoming replacements, looking at capital, lease rentals, loans and charitable funds so the Trust could review their options and make optimum asset funding decisions.
  • We then met with Clinical Engineering to review the information in the first of a series of regular quarterly reviews to discuss upcoming priorities and aspirations and how we can accelerate replacement of equipment through identification of savings elsewhere.

The outcomes

  • Visibility of the whole-life costs of existing assets in one easy-to-use system with access for all relevant stakeholders.
  • Accelerated equipment replacement opportunities through savings that deliver budgetary headroom making business cases more easily justified.
  • A full funding analysis for each asset, to assist the Trust in assessing replacement funding options. Where the Trust has insufficient capital to finance investments or alternative funding options could provide increased value, the detailed funding options provide the most cost-effective alternatives.
  • Analysis of alternative options to forecast the whole-life cost impact of the range of options available (different equipment, suppliers, funding, maintenance).
    Fully updated by the team at Lifecycle to ensure data remains current and changing prioritise are reflected.
  • Access to the relevant data ensures fully informed, transparent prioritisation of equipment replacements. This data also informs savings opportunities on existing equipment which we can highlight and realise, creating headroom for replacements.

“Lifecycle has collected and organised data from various internal stakeholders. They have looked at high-spend departments where budgets are key, to show all the current associated costs for equipment including current funding, maintenance, project and decommissioning costs as well as risk ratings for all equipment. Then, using the data they have, they’ve forecasted replacement cycles and options.    

 Their Replacement Planning service allows all this information to be visible in one location via a dedicated system and it allows us to effectively manage planned replacements and enable rapid decision making when circumstances require the plan to change.

 Far broader control is delivered for all key users who inform the replacement process, from supporting budget holders with business cases through to highlighting items at high risk to Clinical Engineering.”

David Nurse
Head of Clinical Engineering
Chelsea & Westminster Hospital NHS Foundation Trust