Outsourcing at Fatima

Memorial Hospital

1
 Situational Analysis
Objective Issues Faced

Providing medical facilities to 1. Declining standards of cleanliness

weaker sections of society at free
or subsidised rates
CSF’s
• Cost effectiveness
• Quality of services
Actions Taken
• Cost saving strategy -
outsourcing of non core services
• Pilot project - outsourcing
janitorial services
• If successful, to be replicated for
other non core services
• Use of substandard materials
• Non availability of janitorial staff
at the place of duty
Problem Statement
2. Patients opinion survey highlighted
How to maintain control
• Deteriorating behaviour of janitors
over quality standards
• Negative effect on hospital while ensuring cost
reputation effectiveness of non core
3. Performance management issues services?
• No formal mechanism to measure
and monitor the performance of
contractor and its employees
• Employees propensity towards
working on the payrolls of
hospital

Evaluations and
Situational Analysis Solutions Options Action Plan Additional Issues
Recommendation
 Solution Options

Solution Options Key initiatives

• Draw fresh contract with detailed terms and conditions
Option A
Renegotiate contract with • Grant full autonomy in recruitment and release of employees
updated SLA • Include inspection and material standard criteria in contract

• Draw fresh contract with detailed terms and conditions

Option B
Terminate contract and offer • Impartial bidding based on minimum price offered
service for fresh bidding • Preference given to contractors with janitorial experience at hospitals

• Preference in recruitment to previously employed staff

Reinstate janitorial service as • Introduce PM mechanism on the same lines as Option A & B
Option C
a hospital function
• Outsourcing laundry not to be removed from pipeline

Evaluations and
Situational Analysis Solutions Options Action Plan Additional Issues
Recommendation
 Additional Issues

1 Contract given without following due process (No competitive bidding process)
• The CSF of ‘cost effectiveness’ has suffered

2 Delayed payments to contractor

• Contractor uses sub standard materials for cleaning
• Required staff strength is not maintained, leading to shoddy service
• The intervention of ACEC to get the payments done shows
• Laxity by accounts department or internal forces at play to make the project unsuccessful

3 No Choice given to contractor in selecting the workforce

• Contractor forced to hire staff who lost their permanent jobs for this very project, that too at lower wage
• The failure of this project will directly benefit these people

Evaluations and
Situational Analysis Solutions Options Action Plan Additional Issues
Recommendation
Thank You