HSV identifies significant cost savings for Footscray Hospital

HSV’s Customer Operations team has identified a $260,000 cost reduction opportunity across imprest-only departments at Footscray Hospital.

HSV Head of Customer Operations Yvette Karslake says the team conducted a detailed data analysis of Footscray Hospital’s imprest usage to identify the cost savings.

HSV’s usual process involves providing imprest reviews on each department at least once a year, however the detailed analysis undertaken on this occasion went much further to outline cost variances or suggest changes based on departmental usage.

The team completed their stock review across 29 imprest-only departments at the request of Western Health procurement services.

“Undertaking a deep dive look at the stock data and reporting, we identified those items that were being ordered, but that were not being used and sitting on the imprest list,” Yvette says.

“We also reduced the maximum levels of stock being held, in alignment with usage.”

Western Health’s Divisional Director of Procurement Services, Arnold Sottile-Roxas, says the review was part of a decluttering project being conducted throughout the organisation.

The Footscray site was a priority because the imprest review will be used for decommissioning planning at the current site and operational readiness at the new Footscray Hospital opening in late 2025.

“The objective was to get stock levels set to a weekly replenishment cycle. We also needed to adjust for variations in terms of the size and number of storerooms at the new hospital. The cost saving identified was a bonus.”

Arnold says it’s important to prioritise the reviews on an ongoing basis – preferably every six months – to contain costs, support future planning and optimise space at the hospital.

“We are a growing health service and from a planning perspective this clearly delivers additional value and savings,” he says.

Arnold says imprest management is part of an inventory management strategy that will be implemented at each of Western Health’s sites.

“It’s a critical part of our Supply department’s functionality and we want to be able to continue to do this work effectively.”

He said the team at HSV had done a fantastic job.

“We wouldn’t have the information we need to set up the new hospital without this work. The team at HSV is very knowledgeable and understands the needs of health services.”

The next step will be for the hospital’s nurse unit managers to review and approve the identified savings list, Arnold says.

Construction of the new Footscray Hospital is on track to be completed in September 2025.