: Impact reports
Current Contract
Additional information
An impact report forecasts the impact a new HSV collective agreement will have on your health service. The forecast is based on the products and services your service purchased through the HSV collective agreement that is now being replaced.
The report also acts as a step-by-step plan to help your health service transition from the original to the new collective agreement. It includes information on:
- the benefits of the new agreement for your health service
- what has changed in the new agreement
- what actions your health service will need to take to transition to the new agreement.
Impact report purpose
The purpose of an impact report is to:
- provide a quick reference guide to the products and services covered by the new agreement
- suggest substitutes for products or services your health service purchased under the original agreement that are not covered under the new agreement
- identify products or services your health service purchased under the original agreement that are not covered by the new agreement. Your health service can negotiate directly with suppliers for these products, or find alternatives
- recommend priority transition tasks that will result in the biggest cost savings for your health service
- help your health service to transition smoothly from the original agreement to the new one and to comply with the contractual terms
- confirm the accuracy of the benefits of the new agreement that we previously reported.
What an impact report does not cover
An impact report cannot identify contracted products or services where there is no historical purchasing data. Use the pricing schedule or transition guide instead for this purpose.
Category and sub-category descriptions can also help you find contracted products to meet these needs.
Impact report structure and terminology
HSV provides impact reports in an Excel spreadsheet listing the items your health service previously purchased that were covered by the old agreement. The report also includes data from suppliers for the sales they made to your health service for each item.
The report groups items together into categories as follows:
- Direct match – the item previously purchased by your health service exactly matches an item on the new agreement.
- Best match – the item previously purchased by your health service is similar to an item on the new agreement.
- No match – the item previously purchased by your health does not match any item on the new agreement.
Direct match
A direct match means the item you currently buy has the same supplier and part number as an item in the new agreement.
If an item is a direct match, the only action your health service needs to take is to update your catalogue with any price changes.
Best match
A best match is suggested when a direct match is not available. This can happen if the item is superseded, no longer made, or not covered in the new agreement.
A best match is the most likely substitute in the new agreement. HSV usually matches to the same supplier, but you can also identify a best match from another supplier. Make sure your consult with your clinicians to identify best matches.
Even if the product is essentially the same but has a different product number, unit of measure (UOM) or other key detail, it will be recorded as a best match. Check for best matches from the same supplier first.
If the best match is from another supplier, the product may need to be evaluated and approved by your health service’s product evaluation team before it can replace your current product.
No match
No match means we have not identified a product or service that matches in the new agreement. This does not always mean there is no substitute. It may simply mean one was not found during sourcing.
To identify possible substitutes, check the pricing schedule for all products in the same sub-category.
Total estimated annual cost impact
When an item you buy matches an item in the new agreement, we calculate the difference between the price you previously paid and the new price. The total represents the estimated financial impact the new agreement will have on your health service. This figure is called the ‘total estimated annual cost impact’.
As you work through the steps to transition to the new agreement (detailed below), mark items ‘Completed’ as you finish them. When all tasks are marked ‘Completed’, the total estimated annual cost impact will display in cell A1.
Steps to transition to the new collective agreement
Your impact report is a guide to help your health service transition from the original agreement to the new one.
By following the steps below, you will be able to prioritise tasks and track your progress.
Tip: Mark tasks ‘Completed’ (in column A) as you action them. You can then filter the spreadsheet by items you still need to address.
Quick wins
- Sort by cost reductions (column Y) in descending order.
- Filter column C for ‘direct match’ and update pricing data for these products, prioritising those with the biggest savings.
- For these lines and any with the same price, change column A to YES (completed).
Best match – same supplier
- Filter column C for ‘best match’ and column B for ‘same supplier?’ = TRUE.
- Update the catalogue for any items that are clearly the same product and mark as complete.
- Flag uncertain items for follow-up.
Best match – different supplier
- Filter column C for ‘best match’ and column B for ‘same supplier?’ = FALSE.
- Update any acceptable substitutes and mark as complete.
- Flag uncertain items for follow-up.
No match
- Filter for ‘no match’.
- Cross-reference the pricing schedule for products in the same sub-category that may be suitable substitutes.
Price increases
- Decide whether to update catalogues for products that have increased in price. Consider the potential inefficiency of managing orders with pricing mismatches.
You can also identify other products or services your health service uses by reviewing your health service’s previous purchases against each sub-category in the pricing schedule.