Hgh Diagnostic Assessment

Hawkesbury General Hospital Workforce Analytics™: Diagnostic Assessment May 15, 2009

TABLE OF CONTENTS 1

SUMMARY

3

2

EXCESS LABOR COST

4

2.1

OVERTIME

4

2.1.1 2.1.2 2.1.3 2.1.4

TREND—HOURS PER EMPLOYEE, PER INVOLVED TREND—MONTHLY CONTRIBUTION TO TOTAL OT HOURS OUTLIERS CORRELATION OF OVERTIME TO OTHER METRICS

4 5 6 7

2.2

TIME PAID NOT WORKED (ROUNDING RULES)

8

2.2.1 2.2.2

TREND—TIME PAID NOT WORKED (SPLIT BY IN/OUT PUNCHES) OUTLIERS

8 9

3

WORKFORCE ANALYTICS™ PLATFORM

10

4

ASSUMPTIONS

11

5

APPENDIX A—TIME PAID NOT WORKED OUTLIERS

12

6

APPENDIX B—PAY CATEGORY MAPPING

14

Diagnostic Assessment: UTHCT

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1 SUMMARY Overall, the Hawkesbury General Hospital (HGH) has the potential to save $197,251 (annual, based on April 1, 2008 – March 31, 2009).

Kronos used Workforce Analytics™, its proprietary labor analytics solution to prepare this diagnostic assessment. In general, labor analytic measures and KPIs provide micro-level visibility into the trends, drivers and outliers that create excess labor cost and lost productivity. In addition, Workforce Analytics™ provides: organizations with the ability to hold supervisors and employees accountable, managers with actionable information and data to support process improvements, and the corporation the ability to control costs.

Below is a summary of potential cost savings for HGH: •

$142,188 if overtime costs for outlier occupations are brought in line with company average Overtime Hours as % of Total Paid Hours.

•

$55,333 if rounding rule abuse is addressed.

Both of these are expanded on in detail in the sections that follow. The cost savings analysis was based on wages for limited Occupation Types; overtime assumed to be 1.5 times average regular for the purposes of the cost analysis included in this document.

NOTE: The analysis contained in this document is meant solely to identify potential areas for cost reduction. Kronos does not guarantee any labor cost reductions by delivering this document; savings may only result from actions taken by HGH. This assessment is blind to quality of care considerations that may impact HGH’s ability to optimize labor scheduling and utilization. Cost-based measures are available in Workforce Analytics™ when wages are stored in WFC; user access to wages in WFC may be controlled by the “Wage Access Profile Switch”, i.e. the data could be stored in WFC without anyone having access to it in WFC, access would only be for managers with access to Analytics.

Diagnostic Assessment: UTHCT

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2 EXCESS LABOR COST In the Workforce Analytics™ platform, excess labor cost is comprised of several metric categories, including (but not limited to): Overtime and Time Paid Not Worked (i.e. rounding rule abuse).

2.1 OVERTIME 2.1.1

TREND—HOURS PER EMPLOYEE, PER INVOLVED

This Overtime Hours trend allows for very high-level comparison across the total organization; Workforce Analytics™ provides the easy ability to filter results by any Labor Level and/or Employee.

OT Hours per Employee, per Involved 14 12 10 8 6 4 2 0

13.29 11.84 10.29

April

May

11.09

June

11.27

July

10.80

August

10.36

September October

9.72

9.33

November December

2008 Hours

9.41

10.13

9.94

January

February

March

3,000 2,500 2,000 1,500 1,000 500 0

2009 Hours per Employee

Hours per Involved

The graph above shows that for employees who incurred overtime, a high was reached in August 2008, when 13.29 hours were incurred per Involved (number of OT hours / number of employees who incurred overtime). Lower per Involved value means that more employees are incurring the overtime (hours are distributed across more employees). The next section shows that total Overtime Hours is trending up for the year over year 24-month period. Diagnostic Assessment: UTHCT

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2.1.2

TREND—MONTHLY CONTRIBUTION TO TOTAL OT HOURS

This trend shows that Overtime has been steadily increasing at HGH, with significant peaks in March and August of 2008, incurring 2721.93 and 2590.60 hours respectively.

2007

2008

1,969.00

March

1,833.22

1,684.05

January

February

1,670.62

December

1,866.65

2,019.95

October

November

2,019.22

September

2,590.60

August

2,332.40

July

2,184.40

June

1,955.28

May

March

1,994.62

1,818.03

January

February

1,869.20

1,534.35

November

December

1,600.22

October

1,808.85

September

2,028.93

August

1,691.33

July

April

1,000.00

May 1,222.65

1,500.00

1,333.57

2,000.00

June

2,011.93

2,500.00

April

2,721.93

3,000.00

2,273.50

Overtime Hours: Trend

2009

Considering this in context of the previous section: there are more total hours (upward trend) being distributed across an increased number of employees incurring the overtime. This leads to the following questions for further consideration: •

Are there opportunities to replace overtime labor with regular labor?

•

Does staffing need to be increased?

•

Are there outside factors, e.g. closing of surrounding/competitive facilities that have contributed to influx of additional patients?

Diagnostic Assessment: UTHCT

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2.1.3

OUTLIERS

HGH provided regular wage rate for select, non-salaried Occupation Types. Those occupations were evaluated, and the following outliers are performing above the company average of 2.71% Overtime Hours as Percent of Paid Hours.

Occupation Type

Overtime HRS as a % of Worked HRS

Commis Clinique Consultant Orderly Reg Nurse RPN Senior Tech Ultrasound Senior Tech Security Guard with HOOPP - 1 yr plus Porter

Overtime HRS as a % of Paid HRS 7.79% 5.55% 5.94% 4.94% 5.41% 4.25% 3.63% 3.17%

6.35% 5.42% 5.11% 4.39% 4.05% 3.61% 3.58% 2.93%

If overtime for these outliers is brought in line with average, i.e. reduced to 2.71%, HGH has the potential to save $142,187.60, based on April 1, 2008 – March 31, 2009 data. This equates to reducing Overtime by 9179.95 hours, to be replaced by Regular hours. NOTE: Average regular wage per occupation x 1.5 = average OT wage per occupation. This cost savings example is based on wage information for a limited number of occupations; actual savings may be greater (i.e. if there are additional outliers exceeding 2.71% overtime performance for which cost information was not available at time of this analysis).

Another way to look at Outliers is by organization breakout, where the following 2 organizations significantly exceeded the company average 2.71% Overtime Hours as Percent of Paid Hours for the April 1, 2008 – March 31, 2009 time frame:

Organization Hawkesbury General Hospital Ambulatory Services Nursing In-Patient Services Diagnostic & Therapeutic Services Administration & Support Services Community Services Mental Health Services Marketing Services In Service

Overtime HRS as a % of Worked HRS

Overtime HRS as a % of Paid HRS 3.19% 5.41% 5.18% 1.32% 1.16% 0.30% 0.25% 0.19% 0.04%

2.71% 4.76% 4.40% 1.08% 0.98% 0.23% 0.22% 0.17% 0.04%

NOTE: This outlier information (section 2.1.3) was analyzed on the 12 months from April 1, 2008 – March 31, 2009.

Diagnostic Assessment: UTHCT

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2.1.4

CORRELATION OF OVERTIME TO OTHER METRICS

Lastly, Overtime may be taken in the context of other metrics. The following shows a trend of Overtime vs. Unexcused Absenteeism, in other words: Scheduled Not Worked / non-approved absences. As is clearly demonstrated, the increasing trend in overtime is paralleled by the increasing trend in Unexcused Absenteeism.

9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00%

2007

2008

All Paid OT

All Absenteeism - Unexcused Absenteeism

Linear (All Paid OT)

Linear (All Absenteeism - Unexcused Absenteeism)

March

February

January

December

November

October

September

August

July

June

May

April

March

February

January

December

November

October

September

August

July

June

May

April

0.00%

2009

NOTE: The accuracy of the Absenteeism category is dependent on schedules, which were present in the HGH data. In contrast to Unexcused Absenteeism (displayed above), Excused Absenteeism requires manager approval of the exception (in Workforce Timekeeper).

Diagnostic Assessment: UTHCT

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2.2 TIME PAID NOT WORKED (ROUNDING RULES) Good news – HGH is benefiting significantly and consistently from the current rounding rule configuration, a negative differential is benefit to the organization (positive would be benefit to the employee).

Rounding Rule: Differential Hours

March

February

January

December

November

October

September

2009

August

July

June

May

April

March

February

January

December

November

October

2008 September

August

July

June

May

April

2007

.00 -400.00 -800.00 -1,200.00 -1,600.00 All occupations were included in the Rounding Rule differential hour analysis above.

2.2.1

TREND—TIME PAID NOT WORKED (SPLIT BY IN/OUT PUNCHES)

Regardless of the observation in the preceding section, the 12-month trend below shows that there is significantly more abuse on the out punch. Thought of in a business context, this is perhaps people leaving early knowing that the out punch on their time card is rounded forward.

42.28

63.07

60.10

January

2008 All Paid Not Worked - Paid Not Worked In

Diagnostic Assessment: UTHCT

41.97

41.73

March

55.57

February

43.02

December

July

38.38

November

40.60

October

46.27

September

53.02

August

55.58

June

171.35 178.98 183.48 169.42 172.43 177.68 152.28 144.37 163.57

May

209.73 241.35 212.88

April

350.00 300.00 250.00 200.00 150.00 100.00 50.00 .00

2009 All Paid Not Worked - Paid Not Worked Out

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2.2.2

OUTLIERS

The average Time Paid Not Worked at HGH is 0.36%. If eliminated altogether (not just those exceeding the average), HGH has the potential to save $55,333.20 (based on 12 months from April 1, 2008 – March 31, 2009).

The occupations that exceed the average are listed below (see Appendix A for full list):

Occupation Type Occupational Health Nurse Social Worker MSW Security Guard with HOOPP - 1 yr plus Infection Control Nurse Counsellor Tech Assist 2 Physio Junior Clerk 2 Commis Clinique Consultant RN2 Psychiatric Nurse Counsel Commis Multi-Disciplinaire Housekeeping Aide Speech Therapist Rehab PGM Junior Clerk 1 Secretary General Maintenance Class B

Time Paid Not Worked HRS as a % of Worked HRS 1.20% 0.90% 0.75% 0.62% 0.60% 0.58% 0.49% 0.48% 0.47% 0.45% 0.41% 0.39% 0.39% 0.38%

The organizations that exceed the average are highlighted in red below:

Organization Map Hawkesbury General Hospital Administration & Support Services Community Services Community & Social Services Ambulatory Services In Service Mental Health Services French & English Services Diagnostic & Therapeutic Services Nursing In-Patient Services Marketing Services

Diagnostic Assessment: UTHCT

Time Paid Not Worked HRS as a % of Worked HRS 0.36% 0.61% 0.47% 0.44% 0.42% 0.29% 0.27% 0.24% 0.22% 0.19% 0.11%

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3 WORKFORCE ANALYTICS™ PLATFORM Visibility to value: See workforce impact on business results Workforce Analytics™ gives you a quick and easy view of workforce performance — enterprise-wide to individual contributor. These web-based, on-demand views show how your labor force is aligning with company-specific or industry best-practice key performance indicators (KPIs); indicators show you when these benchmarks have been exceeded. Dashboards display valuable information, such as manager-performance scorecards, time-period or individual-performance-to-group comparisons, and cost-saving correlations — for example, determining if a rise in unplanned overtime is resulting from an increase in unexcused absences or if overtime is rising and falling with volume levels. Meaningful insight to improve and maximize workday return Now that you have the visibility into your workforce and have determined where you need to focus, you can start asking questions to determine why these labor performance issues, like excessive overtime or unexpected absenteeism, are happening — the key to maximizing your workday return. By isolating these past performance concerns and quickly course-correcting, you can more readily align workforce performance to expected business results. And by identifying trends and distinguishing one-time occurrences from recurring events, you can better schedule and plan for situations such as increased volume or sporadic holiday attendance. The control factor: React responsibly to workforce performance Without the actionable data and clear insight provided by Workforce Analytics™, your managers might not have sufficient visibility into labor performance results, leaving them unable to see potential areas of improvement. By being able to see into labor variances, your managers become empowered to make corrections to help ensure expected outcomes. Along with this empowerment comes accountability. With the visibility gained and questions answered, managers can now be expected to control results within expected targets. Improved workforce performance results, whether they be reduced labor costs or increased productivity, are now within their control.

Diagnostic Assessment: UTHCT

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4 ASSUMPTIONS 1. HGH’s fiscal calendar was not mapped for the purposes of this Diagnostic Assessment; all dates are reflective of the standard calendar. 2. All time & attendance data is recorded in Workforce Central® (WFC) at HGH; there are no outside sources of additional time & attendance data. 3. Wage information is based on the outside list that HGH provided to Kronos for the purposes of this assessment; wage information was not available in WFC.

NOTE:

Cost-based measures are available in Workforce Analytics™ when wages are stored in WFC; user access to wages in WFC may be controlled by the “Wage Access Profile Switch”, i.e. the data could be stored in WFC without anyone having access to it in WFC, access would only be for managers with access to Analytics.

Diagnostic Assessment: UTHCT

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5 APPENDIX A—TIME PAID NOT WORKED OUTLIERS Occupation Type Occupational Health Nurse Social Worker MSW Security Guard with HOOPP - 1 yr plus Infection Control Nurse Counsellor Tech Assist 2 Physio Junior Clerk 2 Commis Clinique Consultant RN2 Psychiatric Nurse Counsel Commis Multi-Disciplinaire Housekeeping Aide Speech Therapist Rehab PGM Junior Clerk 1 Secretary General Maintenance Class B Senior Tech Ultrasound Storekeeper Medical Secretary Tech 2-phlebotomiste Reg Nurse Ultrasound - Registerd Technologist Orderly RPN Tech 4 EMG Geriatric and Clinical Nurse Tech 4 cardio pulmonaire Security Guard - 1 yr plus Intermediate Clerk Security Guard - 1 yr less Commis Services Médicaux Ward Clerk RPN Security Guard Dietary Aide RN-Diabetic Counsel - conseillere Nurse Pract Clinic Stro Pain Mgment Nur Coun Senior Tech Physiotherapist Ward Clerk Orderly Diagnostic Assessment: UTHCT

Time paid not worked hours as a % of worked hours 1.20% 0.90% 0.75% 0.62% 0.60% 0.58% 0.49% 0.48% 0.47% 0.45% 0.41% 0.39% 0.39% 0.38% 0.36% 0.35% 0.33% 0.32% 0.29% 0.28% 0.27% 0.21% 0.21% 0.20% 0.20% 0.20% 0.20% 0.19% 0.18% 0.18% 0.18% 0.18% 0.17% 0.17% 0.15% 0.15% 0.12% 0.12% CONFIDENTIAL

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Occupation Type Charge Tech Lab Porter General Maintenance TL Psychometrician Payroll Clerk Kinesiologist Ward Clerk Pharmacist Health Records Adm Occupational Therapist Tech 3 Physio Social Worker BSW Dietician Tech 3 OT

Diagnostic Assessment: UTHCT

Time paid not worked hours as a % of worked hours 0.11% 0.11% 0.10% 0.09% 0.08% 0.07% 0.06% 0.05% 0.05% 0.05% 0.03% 0.03% 0.02%

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6 APPENDIX B—PAY CATEGORY MAPPING The following list is how the HGH pay codes were mapped for the purposes of this assessment; this may not be the final mapping used during an implementation phase. Clients are required to approve this mapping when the product is implemented. Pay Category Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Non Productive Other Other Other Other Other

Pay Code Name ACRB ACRB-Flextime ACRP ACRP-Flextime Bereav.Leave Consecutive Sick Convention External Activity External Activity-Flextime Flextime banked Flextime overlimit Flextime used Holiday On Call JuryDuty LTD Meal Allowance On Call On Call Clinical On Call MIS ONA+Meal ONA+Meal +Resp OT Bank Taken Paid Exam Paid Union Leave by Admin. - PUA Paid Union Leave by Union - PUU PDVAC PT Responsibility Responsibility CSBP Responsibility Diabetic Clinic Rlf-OTBankTaken Rlf-Time Taken SICK STSUP Vac WCB DayInjury WCB FollDay Con Unpd Leave - Flextime Con UnpdSick - Flextime Consecutive Unpd Leave Consecutive UnpdSick do not used

Diagnostic Assessment: UTHCT

Core Hours? No No Yes Yes Yes Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes No

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Pay Category Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Other Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Overtime Regular Regular

Pay Code Name Lead Hand OT reason OT-DEVMIS Other reason PRE-SCHED UNPD LEAVE PUU Non Scheduled PWB Rlf-Adj SHIFT SWAP ShiftSwap SV -RL2 SV-EVG SV-NIT SV-OBB SV-OBC SV-OBS SV-REG SV-RL3 SV-RL4 SV-WND Temps repris To Be Approved To Be Approved - Flextime Unpd Leave Unpd Leave-Flextime Unpd VAC Unpd WCB UnpdSick UnpdSick-Flextime UnpdUnion UPVACPT 1.0 OT 1.0 OTBK 1.5 OT 1.5 OTBK 1.5 Rlf-Sick 1.5 Rlf-VAC 2.0 OT 2.0 OTBK Rlf-OT 1.5 Rlf-OT BK x1 Rlf-OT BK x1.5 Rlf-OT BK x2 Rlf-OT Sick Rlf-OT Vac ACCP ACCT

Diagnostic Assessment: UTHCT

Core Hours? No No No No Yes Yes No Yes Yes Yes No No No No No No No No No No No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes CONFIDENTIAL

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Pay Category Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular

Pay Code Name AMB Bénévole BOUTIQUE Bénévole CLÉRICAL Bénévole DIVERS Bénévole ÉTUDIANTS Bénévole PASTORALE Bénévole SERVICE AUX PATIENTS Bénévole SOINS PALIATIFS BK WKND BK-CallBack Com.Act. Com.Work Com.Work-Flextime CovVacShift DEV MIS Evening Evening - Night EXTRA SHIFT ExtraHrs MOD Work Night PdCallBK PdLvUnionAct-Flextime PdUnionLv-Flextime REG WKDN Regular Rlf-Bereavement Rlf-Call Back Rlf-ComAct Rlf-ComWork Rlf-Conv. Rlf-Educ Rlf-JuryDuty Rlf-Leave Rlf-Move Rlf-Oncall Rlf-Other Rlf-SICK Rlf-Stat Rlf-SWAP Rlf-UnionAct Rlf-Unpd Leave Rlf-UnpdSick Rlf-UnpdUnionAct Rlf-UnpdVac Rlf-VAC Rlf-Workload

Diagnostic Assessment: UTHCT

Core Hours? Yes No No No No No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

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Pay Category Regular Regular Regular Regular Regular Regular Training Training Training Training Training Training Training Training

Pay Code Name STAT Student Supervision UnionSick-On job Weekend WK-Stat Work @ Home Education Education-Flextime Orientation Rlf-Orientation Rlf-TRN TEACH Training Training-Flextime

Diagnostic Assessment: UTHCT

Core Hours? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

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