PROJ6004: Contracts and Procurement Review Report - Adelaide Hospital

This report provides a comprehensive review of the New Royal Adelaide Hospital project, focusing on procurement and contract management within a Public Private Partnership (PPP) framework. It analyzes the project's governance, risk management, and business planning, highlighting critical areas for improvement. The report identifies various risks, including project delays, contractual failures, and inadequate staffing, and proposes mitigation strategies. It also examines best practices for contract and procurement management, emphasizing the establishment of a governing supply chain council, proper staff alignment, and the implementation of effective working technologies. The analysis includes the roles of the project and procurement managers, emphasizing their responsibilities in ensuring stakeholder satisfaction and successful project outcomes. The report concludes with reflections on the importance of procurement management in healthcare, emphasizing the need for clearly defined roles, innovation, and value-based procurement.

Running head: REVIEW REPORT
Review Report: New Royal Adelaide Hospital Report
Name of the student:
Name of the university:

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Part A: Introduction summary
This report depicts the role of private partnership hospital projects that are strictly
focused on developing modern healthcare facilities in the southern zonal area of Australia. It is
the role of the healthcare industry to deliver effective service to both the patients and diagnostics.
By the end of 30th June, (2015) from the supplementary report was prepared by New Royal
Adelaide Hospital. The Public Private Partnership (PPP) is the arrangement that has been used
by the hospital sector for improving the details service opportunity of the hospitality sectors (v et
al., 2016). This hospital sector has give specific focus on the project governance, risk
management, budget related reports and their business planning. It has been assumed that if all
these factors professionally assumed and analyzed then the expected business outcome can be
generated from the planning (Saunders & Carter, 2017). Proper contract administration and
procurement management approach are the other things those are properly utilized while
producing the report for this specific hospital.
While analyzing the details of committee level improvement it has been found that for
giving better understanding for the consequences and nature of service different strategic risks
are being identified those need immediate mitigation strategies. The business case developed for
this hospital also lags some critical parameters such as scope, benefit, risks and scopes as well
(Turner, 2017). Supporting risk register has also been prepared to identify the risks and to create
their related mitigation strategies. Risks have been identified in terms of state funding works,
clinical services (with health practitioners, doctors, nurses etc), ICT enterprise systems of the
hospital. The other risks those have been identified regarding this include the following:
 Delay in project delivery due to high cost

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 Unable to meet the PPP contractual requirements
 Improper claim management
 Industry level disputes and undefined correlation to new RAH site
 Deficient well trained staffs
 Inadequate delivery of hospital sustainable model for patient care
 Inaccurate strategic direction and misalignment to the health care change policies
 Improper transition planning, resource capability and resource planning
 Improper RAH ICT integration, delivery framework and integrated testing
approach
It is experienced that with professional leadership and governance the current business
scenario of the hospital can be influenced. The operation of the RAH board must be refocused by
refining the roles of senior resources (Edler et al., 2015). The leaders must prepare accurate
progress reports to let the team members familiar with the project goal and to govern the project
towards success. The assurance framework designed for the hospital was very weak and requires
specialist advisors to make the process an error free one.
Part B
After reviewing the case study of “New Royal Adelaide Hospital” it has been found that
there are certain complex issues those needs successful strategies for mitigation the identified
issues. Through these strategies the procurement and contract management related issues can be
resolved (Hawkins et al., 2015). A wider responsibility from the resources is required for the
successful implementation of the hospital objectives. The risks and their relevant mitigation
strategies are illustrated in this below section:

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Risks Responsible
resources
Changes to
procurement
brief
Project
specifications
Mitigation strategies
Delay in project
completion
Professional
project
owners
In order to
streamline
and automate
the
procurement
solution over
spend the
influence
must be
increased
accordingly.
It can enforce
the complaint
purchase
through making
it easier for the
employees.
With an
auditable
purchase this
system can
implement
corporate spend
management
policies.
In order to mitigate this risk
the project owner should
estimate the total time and
budget properly to avoid
budget overrun and time
overrun (Edler et al., 2015)
Overrunning
project budget
Finance
manager
Improvement
in efficiency
and automate
source to
settle
procurement
The traditional
manual process
will be turned
into automated,
streamlined, and
standardized
The hospital audit team
should prepare the project
budget to measure the
project feasibility. From the
feasibility report the
management team will come

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processes system with the
help of
professional
management
(Hawkins et al.,
2015).
to know about whether the
project is beneficial or not.
Failure in
meeting the PPP
requirements
Company
owners
Improvement
in suppliers
management
With the
hospital code of
conduct the
potential
capabilities,
viabilities,
compliances of
the suppliers
will be
improved.
The operating team must
adopt standard project
agreements and additional
support from the
government to make sure
that all the norms and
regulations are properly
followed by the hospital
authority (Kerzner
&Kerzner, 2017)
Inadequate
management
claims and
industrial
disputes
Management
head
Change
requested in
the industrial
resource
management
and sourcing
management
If the hospitality
industry
specifically
identifies their
claim
management
system for
In order to operate the
functionalities and
management it is required to
adopt proper managerial
details addition to industrial
disputes. As soon as the
disputes will be identified

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improving the
insurance policy
details for their
patients then the
number of
frauds will be
automatically
reduces and
that much faster the
recovery strategies will be
able to be developed
(McLaughlan, Pert and
Bennetts, 2017).
Absence of well
trained staffs
Human
resource
manager
Development
of effective
collaboration
With internal
collaboration the
processes will
be come much
easier to
implement. In
addition to this,
the embedded
collaboration
leads the
assignment
towards fast
completion and
also the
processes
Professional on job training
and development programs
should be arranged by the
hospital authority to make
them more focused to their
job roles and efficient.

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facilitate the real
time documents
reviewing,
authoring for
final approval.
Inadequate
delivery of
healthcare ICT
system
Operation
manager
Transformati
on of
traditional
business
process
rather
replacement
of the
traditional
system with
advanced
ICT system
Digitized system
will reduce the
complexity with
advanced
modern
technologies.
The claim
management is
too vital to give
success to both
the large and
small companies
within the
insurance
industry. In
order to void
legislation and
for lowering the
Besides the medical experts
to improve the service
quality of the hospital,
professional technical IT
experts and technical team
should be formed to keep
the ICT system up-to-date
and advanced (Mignone et
al., 2016 ).

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overall cost
incorporation
Misalignment
with the heath-
care policy
CEO of New
Royal
Adelaide
Hospital
Change to the
professional
contract
management
With the help of
social
collaboration the
pre determined
factors in terms
of price, value
and quality will
be improved
accordingly.
Professional governmental
health care policy details
should be followed and
adopted by the hospital
authority to make sure that
the system is running error
free. At the very initiation
phase proper alignment
must be developed followed
by the healthcare policy. It
will reduce the rate of man
made errors, functional and
operations errors.
Part C
Identification of best prcatices for contract and procurement management in
terms of PPP
The supply side performance of the hospital should be improved accordingly to increase
the competitive advantages and the commercial revenue of the company. A modular

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procurement software suite must be utilized by the hospital for improving the overall system. A
contract management for SRM, tenders towards sourcing and benefits realization are the other
components must focused by the authority to identify and minimize the other disputes (Oluka
and Basheka, 2014). The best prcatices for the contract and procurement management are as
follows:
Establishes governing supply chain council: The purpose of the governing council is to
direct the business strategies towards success. It will help the company to improve their overall
business approach by tendering unique services simultaneously. The membership of the council
should involve the supply chain leaders and corporate executives also. The councils are also
needed to hold regular basis meetings for their members. This mere existence indicates that the
supply chain management has proper support as well as commitment to their senior leadership
(Palaco, Avendaño and Núñez, 2015). The obstacles that act as barriers to the key success of the
hospital can be removed accordingly to improve its service capabilities and corporate chain
strategies. Through procurement and contract management an accurate bridge can be established
between the supply chain strategy and corporate strategies. The hospital can also avail cross
functional communication through this application. Operational consequences can be avoided
through the professional business units.
Proper alignment between the staffs of the organizations: The staffs working for the
New Royal Adelaide Hospital are needed to have proper alignment between their staffs to make
them more engaged to their responsibilities. Besides centralized strategy the company should
adopt hybrid approach fort their organizations (Rendon and Rendon, 2015). With the help of the
procurement and contract management system the staffs working for the company will start
behaving more professionally with advanced current thinking approach. This approach follows

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purchase to pay process which helps to grab more number of consumers and it also increases the
overall security of the organization.
Interact level prcatices are mentioned below:
Effective working technologies: The New Royal Adelaide Hospital should implement
ICT working technologies to make their system more effective and efficient for their employees.
In order to make the ICT technologies more effective most of the times the companies adopt
proper software license (Saunders and Carter, 2017). Proper structure of the chosen process and
their detail workflow helps to improve the business skills and knowledge of the employees who
are working for the company.
Role of the project manager: For this specific PPP technology the project manager is
responsible to control and monitor the entire project. For monitoring the project success its
progress details reports are also needed to be followed by the project manager and the project
manager is also responsible to do these activities.
Role of the procurement manager:
 Evaluation of the raw material suppliers for the New Royal Adelaide Hospital
 The vendors should be interviewed
 Visit to both the supplier’s plants and the material distribution centers
 Attending the trade shows along with conferences and meetings
 Negotiation of different contracts
 The financial result and the price proposal of the company needs unrolling analysis
 To create professional collaboration along with the staffs standards
 Unrolling contract monitoring and evaluation

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 Maintenance and review of the already bought items
Part D
I have learned that, the procurement management is referred to as a technique rather tool
that is generally used by most of the industries for increasing the overall commercial success and
profit of the company. Though for different industries the role of procurement management
varies and also for the healthcare industry the procurement and contract management system
differs. I have identified that, the aim of New Royal Adelaide Hospital is to improve the quality
of service for the doctors, patients and other employees who are working for the company. I
think that for any healthcare organization the responsibilities and roles of the supply chain and
procurement should be clearly defined by the project heads. I have found that the current issues
related to innovation and supply chain should be addressed in such a way so that it can be
avoided easily. After reviewing the details of the hospital activities I have also identified another
aim of New Royal Adelaide Hospital is to identify and mobilize the opportunities for the clinical
providers, leaders and patients. I have also realized that with a successful procurement
management approach throughout the entire lifecycle highest values could be gained by the
businesses through value positioning. I think that the global procurement and supply
management must be followed by the project managers and procurement managers to ensure that
the project will be successful for the healthcare industry. I think that the value based procurement
is another component that should have to be followed by the procurement managers are
innovative tendering criteria maintenance, total care for the project cost, feedback from the
patients and risk sharing arrangement. From the complete learning I have found that whether the
ICT technology running by New Royal Adelaide Hospital is effective or not must will be

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measured through analyzing the feedback those have been generated by the patients and doctors
as well. I have identified that the ICT system increases the functional and operational
effectiveness and efficiency of New Royal Adelaide Hospital if all the criteria are properly
maintained by the company head. Economic prosperity is another purchasing program must be
followed by the hospital authority to manage the healthcare services. Two different policies those
are needed to be widely maintained include safe disclosure and whistle blower policy. Though, I
faced certain issues while analyzing this review but with the successful completion of the review
of New Royal Adelaide Hospital details I have learned that ICT is the only technology that
increases the business efficiency of any industry.

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