1 Executive Summary
Medshore has a service contract with Big Southern DHB, to provide therapeutic surfaces (mattress replacement systems or MRS) to assist the recovery and rehabilitation of patients, using the LDJ suite of products.
The original contractual arrangements have been in place for seven years, with Big Southern DHB (the DHB / BS DHB). The contract provides for a range of options in relation to the service on offer. However the contractual obligation and service offering is open to a number of interpretations, confusion has been exacerbated by the recent high staff turnover experienced with the DHB procurement team. The last renewal of service and supply terms was 18 months ago and there is still 18 months to run on ‘existing’ supply arrangements.
There are legacy issues surrounding the terms of service and supply, the choice of product suite on offer (product mix), and more recently the fleet of therapeutic surfaces is now showing signs of aging and may require additional parts or replacement units to be purchased to meet contracted service levels. Big Southern DHB has withheld payment on all of Medshore’s invoices, back to Sep 20XX until a satisfactory resolution can be agreed and an action plan initiated.
This report provides recommendations for providing a pathway for a mutually agreeable commercial resolution, recommendations and the operational action plan are summarised as per:
Acknowledging concerns presented by BS DHB on a without prejudice basis, placing BS DHB on notice, of non-compliance with dispute resolution processes contained within our supply contract for the therapeutic surfaces.
Clarify and re-document supply and service arrangements.
Improving communication processes to discuss operational matters.
Improving MIS reporting from ShoreMed to BS DHB.
Seeking additional xx fleet units, second hand fleet from Australasian product partner.
Table of Contents
1 Executive Summary 3
2 Introduction 5
2.1 Background 5
2.2 Purpose 6
2.3 Analytical tools / methods 7
2.4 Scope 7
2.5 Outside of scope 7
2.6 Structure 8
2.6.1 # problem solving techniques 8
3 Investigation. 9
3.1 Customer 9
3.2 Business model 9
3.3 Products on offer for therapeutic surfaces 10
3.4 Service 10
3.4.1 Delivery of the product. 10
3.4.2 Cleaning of product post patient use 11
3.4.3 Quality Assurance 11
3.4.4 Stock rotation 11
4 Findings 11
4.1 Contractual Service Agreement – Interpretation from customer perspective 11
4.2 Contractual Service Agreement – historical 11
4.3 Accounting for rented units. 11
5 Conclusion and Recommendation 12
6 Appendix 13
6.1 Appendix – 1 – examples of therapeutic surfaces product 13
6.2 Appendix – 2 – reporting and MIS 14
8 References 15
2 Introduction
2.1 Background
Medshore Medical Limited is a NZ privately owned wholesale distribution and supply Company, it supplies medical consumables and other products and services to public and private health boards. It has grown from a start-up operation to an established provider of over agency products sourced from NZ and internationally. It is one of New Zealand’s largest independent distributors of medical products and devices with over 2,000 product lines, and circa 150,000 stock items.
Success and growth has come from providing District Health Boards product as a service solutions across a broad range of needs, from large scale capital equipment to smaller consumable items used in surgical procedures. Staffing levels have risen to circa 60 staff.
Administration is largely via the Auckland Head Office, sales and service functions are regionally based with home-office arrangements supported by excellent IT and latest mobile communications systems, with sales and service representatives able to operate remotely from the Head Office.
In addition to Finance and Administration, Business Support Teams include:
Customer
