health technology equipment replacement (hter) program … · primary means for the replacement of...

Version No.: 1.1 ; Effective From: 02 January 2013 of 28

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Capital Funding Policy – HTER Implementation Standard Document Number # QH-PCD-024-3-1:2013

Procedure for the Health Technology Equipment Replacement (HTER) Program and Disposal of Replaced Equipment

1. Purpose

This procedure details the: Mandatory HTER funding allocation and use requirements Processes for requesting and allocating HTER funding Processes required to develop and determine equipment list

priorities Processes for the disposal of health technology equipment.

2. Scope

This procedure applies to all Queensland Health (QH) Divisions (this includes the Health Services Support Agency – HSSA) and provides guidance for all Hospital and Health Services.

3. Supporting documents

Authorising Policy and Standard/s:

Capital Funding Policy Capital Funding Policy – Implementation Standard – Health

Technology Equipment Replacement Program Capital Funding Policy – Implementation Standard –

Funding Sources Capital Funding Policy – Implementation Standard – Items

To Be Funded From the Capital Acquisition Plan (CAP) Financial Management Practice Manual (FMPM) HTER Program Implementation Standard.

Procedures, Guidelines, Protocols:

Computerised Maintenance Management System (CMMS), “Health Technology Equipment Master Data” reference guide.

Forms and templates:

HTER Priority Equipment List Template

HTER Equipment List Change Form.

Custodian/Review Officer: Senior Director, Finance in Practice, Finance Branch

Version no: 1.1

Applicable To: Queensland Health

Approval Date: 19/02/2013

Effective Date: 02/01/2013

Next Review Date: 30/ 06/2013

Authority: Capital Funding Policy

Approving Officer

Deputy Director-General, System Support Services

Supersedes: 2012/14 HTER Interim Planning Instructions – Dated August 2011

Key Words: Health Technology Equipment Replacement

Accreditation References:

Equip and other criteria and standards

Queensland Health: HTER Procedure

Version No.: 1.2; Effective From: 02 January 2013 of 28


4. HTER Program Overview

4.1 Program background and purpose:

4.1.1 The Health Technology Equipment Replacement (HTER) Program is the primary means for the replacement of existing Health Technology (HT) capital equipment assets in Queensland Health facilities. The HTER Program is a rolling two year procurement program and replaces HT equipment (e.g. CT scanners, x-ray units, patient monitoring systems, defibrillators, dental equipment) on a state-wide basis.

4.1.2 The corporate funding for this program is provided through the Capital Acquisition Program (CAP) and is managed by the HTER Program, Clinical Solutions and System Support Services (SSS) Division.

4.1.3 A two year rolling program caters for the long delivery timelines for equipment which is frequently sourced from overseas, and allows the Health Services Support Agency (HSSA) to structure its purchasing program within more manageable timeframes. This also allows Hospital and Health Services (HHSs) to make more informed planning, equipment specifications and purchasing decisions.

4.1.4 In accordance with the HTER Implementation Standard, the purpose of this document is to provide HTER Program stake holders that are involved with the purchase of HT and critical infrastructure equipment to be replaced under the HTER Program, with funding procedures.

4.2 The following HTER Program implementation functions apply:

4.2.3 The primary functions of the HTER Program are

To ensure the funding allocation identified for health technology equipment replacement is fully expended at the conclusion of the two year program and is distributed on an equitable basis to support the continuity of health service delivery.

To ensure that HTER funding is utilised for the appropriate replacement of existing equipment.

4.2.4 All HHS and funded QH Divisional projects or programs are required to develop and submit equipment replacement lists, aligned with their HTER funding allocations. The HTER Program collates all HHS and QH Divisional funded projects or programs lists and establishes a state-wide equipment replacement list for submission to the HSSA. The HSSA then determines Purchase Groups and establish a Procurement Schedule.

4.2.5 When HHSs and QH Divisions are determining equipment inclusions and prioritisation of HTER lists, they are to refer to the HTER Equipment Development Check List (Attachment 1), to assist in the preparation of their equipment lists. This is generic in nature and some of the check list criteria may




not be applicable to all HHS/QH Divisions. The HTER Program is available to assist in the development of equipment lists.

4.2.6 The HTER Program also provides ongoing support to the existing program by reconciling equipment bids with expenditure within HHS or Divisional funding allocations, reporting on the programs status, and monitoring the strategic direction of the program.

4.3 The following disposal program functions apply:

4.3.3 The HTER Program also manages the Health Technology Disposals Program (HTDP). The HTDP assists HHSs in the disposal of equipment replaced under the HTER Program. The HTDP ensures that all equipment replaced by the HTER Program is disposed of in accordance with the Financial Management Practice Manual (FMPM) and the HTER Program Implementation Standard while maximising Queensland Health’s financial returns.

4.3.4 A HHS/QH Division may have its own disposal program in place and although it is not bound to utilise the HTDP, there are significant benefits in a HHS/QH Division using the program to dispose of Health Technology. These include:

HTDP Terms and Conditions provide a sound legal platform in which to dispose of equipment

There are clear procedures in place to address probity requirements

The program ensures that scrapping and waste disposal requirements are addressed in accordance with Environmental Legislation and Regulations

Funding assistance for the de-installation of replaced equipment where it has potential for sale on the HTDP website

Provides other Queensland Health facilities with HT options in regards to spare parts and cascading of equipment.

5. HTER Program Funding Procedures

5.1 The HTER Program is responsible for HHS and relevant Divisional allocations, in accordance with the established funding methodology, to ensure an overall equitable distribution to HHS Business Areas or QH Divisions. To allow adequate time for HHS Business Areas and QH Divisions to prepare and submit priority equipment lists, notional funding will be issued not less than six months prior to the commencement of a new program.

5.2 Funding for each HTER Program is determined by Queensland Treasury and Trade each year. Initial funding allocations will be notional until respective Governor In Council (GIC)/Minister/Director General approval is provided for each HHS or QH Division, followed by the Chief Health Infrastructure Officer endorsement of the recommended funding distribution.




5.3 HHS Business Area funding allocations are determined from the apportionment of available funds, by percentage, based on HT accumulated asset depreciation values. This methodology provides the accumulated depreciation of the HHS “MEDEQP” asset base. These are extracted from the Queensland Health Financial and Material Management information System (FAMMIS). However, allocations within all BA will remain flexible across HHSs. This same funding methodology will be applied to Divisional funding allocations where possible (e.g. they have an asset base within FAMMIS).

5.4 The HHS Chair/Chief Executive or QH Divisional Deputy Director-General (DDG) (or Delegated Officer) is to endorse the HHS Business Area’s or QH Divisional funding allocations respectively, using the memorandum format provided in Attachment 2 (HHS Chair/Chief Executive endorsement of 20XX-20XX Health Technology Equipment Replacement Program Equipment List Content and Priorities and Funding). The signed memorandum is to be forwarded to the HTER Program. HHSs may vary Business Area allocations from those originally allocated by the HTER Program in situations where HHS equipment priorities need to be realigned in order to meet service delivery requirements. In these instances the change must be reflected in the format provided in Attachment 2 (HHS Chair/Chief Executive endorsement of 20XX-20XX Health Technology Equipment Replacement Program Equipment List Content and Priorities and Funding).

5.5 QH Divisional initiatives requiring HTER Program funding are to submit requests to the Chief Health Infrastructure Officer for endorsement.

5.6 The following HTER Program equipment funding rules apply:

5.6.1 HTER Program equipment funding allocation is for the replacement (not additions to fleet) of HT equipment, which will be “MEDEQP” Class Assets only as defined in FAMMIS.

5.6.2 Funding allocation for equipment is intended for the replacement of HT equipment over $5,000, in accordance with the Capital Funding Policy Implementation Standard (clause 5.2). Items of less than $5,000 value (GST exclusive) are to be funded out of the HHS/QH Division operating funding. The following rules and exceptions apply:

Where no other funding option is available for equipment which is vital in meeting clinical service delivery requirements, a HHS or Division may seek approval through the Chief Finance Officer (CFO), Queensland Health to purchase HT equipment (“MEDEQP”) valued below $5,000, using their HTER Program funding allocation

Where equipment has a parent/child relationship and the combination of all individual HT items required to operate the equipment are valued at or exceed $5,000 resulting in the creation of a single ‘functional’ FAMMIS asset.

5.6.3 Where equipment has been asset transferred (cascaded) to, or purchased by,




another facility after replacement under the HTER Program, it cannot be replaced again using HTER Program funding.

5.6.4 Expensed items associated with HTER Program funded equipment shall not be

charged to the CAP unless the item can be treated as capital or is approved by the QH CFO.

5.6.5 Information Technology (IT) software upgrades are not to be purchased using

HTER funding allocations.

5.7 Items over $1 million (GST exclusive) require a business case to be approved by the HHS Chair/Chief Executive or QH Divisional DDG (or Delegated Officer). Copies are to be lodged with the following officers:

The HHS Chief Finance Officer (HHS CFO)

For QH Divisions, with the program/project manager

The HTER Program

The QH CFO.

5.8 Where a group of items is being replaced under one project and the total sum of replacement costs of all items is over the $1 million threshold, a business case is required to be submitted for the project (e.g. monitoring systems).

6. HTER Program Replacement Priority Lists

6.1 Equipment replacement priority lists for each two year program are to be compiled by each HHS and Division that is funded by the HTER Program, ensuring the HTER Equipment Development Check List provisions have been considered as detailed in Attachment 1. HHS and Divisional master lists are to be forwarded to the HTER Program email address: [email protected], with the HHS Chair endorsement (or Delegated Officer), as detailed in Attachment 2.

6.2 A HTER priority equipment list template, with submission dates, is to be forwarded to HHS Business Area HTER contacts and QH Divisions funded by the HTER Program not less than six months prior to the commencement of a new program. The template is to be supplied in MS Excel and shall contain the following data fields:

Business Area

Facility

Department

Department clinical speciality

HHS item priority

Business Area priority

HHS recurrent cost centre

Description of item being replaced

mailto:[email protected]




Single Asset Identifier (SAID) number of item being replaced

FAMMIS asset shell number of item being replaced

Date asset fully depreciated

Supplier of item being replaced

Brand of item being replaced

Model number of item being replaced

Acquisition date of item being replaced

Estimated item replacement cost

Estimated installation cost

Equipment type

Equipment sub-type

Replacement justification and benefits

Physical condition of item being replaced

HHS comments/urgency/special requirements & specification requests

Clinical contact for this item

Clinical contact phone number

Clinical contact email for this item.

6.3 HHSs and QH Divisions must submit equipment lists in the MS Excel template format as supplied by the HTER Program. This will assist the data validation process and expedite the purchasing process to ensure equipment is ‘goods receipted’ by the end of each two year program.

6.4 To assign priorities to items that have parent/child relationships, the main priority number should be assigned to the parent item, and sub-sets of that priority number assigned to the children (e.g. parent items are allocated a priority rating of 2, and its children are to be allocated priorities of 2.1, 2.2, etc).

6.5 The HTER Program in conjunction with HSSA will review the priority lists and validate the data supplied; to ensure the requested items have not been previously replaced; meet minimum funding threshold requirements; and are not already in the purchasing process. HSSA will then allocate a HT identification number per item.

6.6 All equipment must include SAID numbers for every replacement item, regardless of replacement value (e.g. if 20 beds were put up for replacement then those 20 SAID numbers must be provided). Items which are found to have been replaced under previous HTER Programs, or are already in the purchasing process or where no SAID number has been supplied, will not be allocated a HT number, and will be automatically removed from the program. HHSs and QH Divisions will be advised where this has occurred.




6.7 If there is a requirement to reduce HHS and Divisional funding allocations after equipment priority lists have been finalised but before the commencement of a new program, items already allocated a HT number that now fall below the funding allocation in accordance with HHS and Divisional priorities, will be given a ‘reserve’ status.

6.8 Equipment Priority List Changes:

6.8.1 HHS and Divisions may add to or withdraw equipment from the equipment list where HHS and Divisional service priorities have changed. Justifications must be included.

6.8.2 All changes to HHS equipment lists must be processed through the HHS HTER coordinator who will ensure the changes have been endorsed by the HHS Chair/Chief Executive Officer (or Delegated Officer).

6.8.3 All changes to QH Divisional equipment lists are to be processed through the program or project officer who will ensure the changes have been endorsed by the QH Divisional DDG (or Delegated Officer).

6.8.4 List changes received from personnel other than the HHS HTER coordinator or QH Divisional program/project officer, will be returned for the appropriate authorisation.

6.8.5 Once equipment list amendments are authorised at a HHS/QH Divisional level, the following is to occur:

Changes regarding additions or deletions to the existing equipment list are to be forwarded to the HTER Program, using the ‘HTER Equipment List Change Form’ (Attachment 2), for authorisation. The HHS or QH Division is to forward a copy to HSSA.

HTER Program approval for additions to equipment lists is subject to the HHS or QH Division ensuring funding integrity is maintained, e.g. addition costs must equal deletion costs, or there needs to be sufficient savings accrued through the purchasing process to cover the cost of equipment being added to the list.

Where changes require bringing forward the supply of ‘Urgent’ items on the current equipment list, HHS or QH Divisions are to forward a request to HSSA for authorisation, via email, detailing all equipment details and the reason why. The HTER Program is to be copied in on the email.

7. HTER Program Installation and De-installation Costs

7.1 Installation: Funding is available for installation work directly associated with replaced equipment funded as part of the HTER Program as detailed in clause 4.1. It must be identified as part of the equipment list to allow the HTER Program to calculate HHS or QH Division funding allocations based on combined equipment and installation costs. If




not identified, it is the HHS or Divisions responsibility to fund any installation costs identified after funding are allocated.

7.2 Where HHS or QH Divisions do not know whether or not installation costs can be assigned to an item of equipment, they are to contact the HTER Program for clarification. The following rules apply:

7.2.1 Installation costs may be funded by the HTER Program in the following circumstance:

Where there are infrastructure changes needed to accommodate the use of incoming equipment, funded as part of the HTER Program (e.g. flooring, shielding, power, plumbing), including the widening of doors to get equipment into place.

7.2.2 The following installation costs are not covered by HTER Program funding:

Refurbishment of the department furniture and fittings, room refurbishment (e.g. widening of doors for patient entry).

IT infrastructure supporting the systems interface with existing systems (e.g. PACS and interface software). An exception to this rule is where cabling is required to connect the item/system to its new work station.

The installation component on an order approval attachment or purchase order.

7.3 De-Installation: HTER Program funding is not to be used to cover the costs associated with de-installation of replaced equipment.

8. HTER Program Monitoring, Reporting and General Requirements

8.1 The HTER Program shall monitor program expenditure, provide advice to stakeholders on funding allocations and provide the Chief Health Infrastructure Officer with monthly reports detailing program expenditure and progress. It will also provide other periodic reports as directed by Queensland Health.

8.2 The HTER Program is responsible to arrange, through the Project Management Office, for an internal order number to be assigned for each HHS Business Area or QH Divisional program/project. The correct cost centre and internal order shall be annotated on the order approval form that is issued by HSSA for all items, including individual purchases. This allows the HTER Program to monitor, report and advise on the actual expenditure position for each HHS Business Area or QH Divisional program/project by using the assigned internal order numbers.

8.3 The SSS may redistribute funding from one HHS or QH Division to another where a HHS or QH Division is unable to commit its allotted allocation.




8.4 The HTER Program is responsible to seek project commencement approval for the total value of each project (provides the initial non-recurrent financial delegation) that comprises the HTER Program through the relevevant Director General, Ministerial or GIC approval process.

8.5 Once the project commencement approval has been obtained, HHS and QH Divisions are to have an employee exercise their position’s recurrent financial delegation to approve the expenditure for each HTER funded item of equipment prior to the procurement of each HTER funded item of equipment, in accordance with the FMPM Circular 01-2012 ‘Project Commencement Approvals’ (which provides in brief: ‘ “Once the project commencement approval has been obtained (non0recurrent), the delegation for the incurrence of expenditure which is a component of the project commencement approval, is a recurrent financial delegation”.

8.6 Where a HHS or QH Division identifies that it will exceed its recurrent financial delegation level, the HHS or QH Division is to submit a brief to the Queensland Health Director-General, via the DDG SSS, seeking financial approval.

8.7 Aggregation Rule: In accordance with the FMPM, section 7.1 ‘Purchasing’, a quotation, contract, orders or invoices shall not be split into smaller amounts in order that the level of financial delegation for the authorisation required, lowers what would be required for the full amount of the item of equipment.

8.8 Raising Purchase Orders:

8.8.1 When creating a purchase order in FAMMIS, HHSs and QH Divisions are to ensure the following items are included:

One HT number per line is to be used on each purchase order

One purchase order per HT number is to be utilised

HT numbers need to be included in the purchase order for each line (e.g. in the text field or tracking number)

When journaling funds a HT number must be included in the description area of each journal

Each journal must be signed off by the HTER Program (debit side)

Repairs and maintenance costs must not be charged to the HTER Program.

9. HTER Program Rollover Commitment

9.1 All delivered, installed and commissioned equipment should be goods receipted by 30 June at the program end.

9.2 Where equipment cannot be goods receipted due to installation and commissioning issues, the HHS or QH Division is to advise the HTER Program in writing as to the reasons why and the expected completion dates.




9.3 Funding which is not committed by 30 June, of the program end (e.g. purchase orders raised but items not goods receipted), may be rolled over for the following financial year and may necessitate HHSs and Divisions having to fund equipment costs as part of the next program funding allocation. This process is not automatic and will be reviewed at the conclusion of each program.

10. Equipment Disposal

10.1 Disposal Overview:

In accordance with the FMPM, delegated officers responsible for the disposal of health technology and general medical equipment replaced under the HTER Program shall comply with the disposal methodology detailed in this protocol.

10.1.1 There are five methods (in order of preference) of disposal:

cascading within HHS/QH Division

cannibalise the unit for parts

sale

donation

destruction or scrapping.

10.1.2 Delegated officers shall determine the most appropriate method of disposal in accordance with the following criteria:

age, condition and physical location of the equipment

time and costs involved in the selected disposal method and

preferred disposal methods.

10.1.4 No equipment replaced under the HTER Program funding shall remain in service at the facility which proposed its replacement unless approved by the HHS Chair/Chief Executive (or equivalent/delegated authority).

10.1.5 The decision by the delegated officer on the method of disposal shall be publicly defensible.

10.1.6 Advice on the most appropriate method of disposal can be sought from the HTDP.

10.2 Cascading:

10.2.1 Where a facility has replaced equipment that is in working order and may be suitable for continued use within a HHS/QH Division, it is recommended that the asset be considered for cascade to other facilities within the HHS/QH Division.




10.2.2 Delegated officers shall consider cascading replaced equipment in conjunction with, but not limited to:

Biomedical Technology Services (BTS) staff

HHS staff and clinicians or

HTDP.

10.2.3 If the item is not suitable for cascade, or no suitable facilities are identified, other disposal methods shall be explored in a timely manner.

10.2.4 An evaluation shall be completed by the receiving facility, in conjunction with advice from relevant stakeholders including BTS, highlighting the item’s clinical suitability and clinical benefits as well as immediate and ongoing financial impacts.

10.2.5 A future funding replacement strategy will need to be developed by the receiving facility when considering the requirements stated in clause 5.6.3.

10.2.6 Delegated officers shall determine the appropriate facility/facilities to transfer the replaced equipment based on the results of the evaluation.

10.2.7 Any transport, de-installation and installation, testing or commissioning costs shall be borne by the receiving facility.

10.2.8 The receiving facility shall ensure a FAMMIS asset transfer form (http://qheps.health.qld.gov.au/fammis/service/forms/asset_ba_transfer.xls) is completed and approved by the appropriate cost centre manager to make appropriate financial adjustments within the FAMMIS asset register.

10.2.9 An “Application to Acquire” shall be completed by the receiving facility’s HHS Radiation Safety Officer for each radiation apparatus being cascaded. The “Application to Acquire” shall be forwarded to the Radiation Health Unit for approval before transporting and obtaining the radiation apparatus.

10.2.10 HHS staff (including clinicians) shall be directed to their relevant HTER contact or the HTDP regarding the cascading of equipment replaced under the HTER Program to their facility.

10.3 Spare Parts:

10.3.1 Replaced equipment unable to be cascaded or unsuitable for continued use within HHSs may be written-off and broken down into spare parts to keep other similar assets operational.

10.3.2 The area retiring the asset shall ensure an asset retirement form (http://qheps.health.qld.gov.au/fammis/service/forms/Asset_Retirement.xls) is completed and approved by the appropriate cost centre manager and sent to the relevant Asset Officer for processing for each asset being utilised for spare parts.

http://qheps.health.qld.gov.au/fammis/service/forms/asset_ba_transfer.xls

http://qheps.health.qld.gov.au/fammis/service/forms/Asset_Retirement.xls




10.4 Sale:

10.4.1 Replaced equipment that is unable or unsuitable to be cascaded or it cannot be used for spare parts shall only be sold by the HTDP.

10.4.2 Delegated Officers shall only use the specification sheets located on the QHEPS HTDP intranet site.

10.4.3 Delegated officers shall ensure equipment specifications are completed accurately and are reflective of the condition of the equipment for sale.

10.4.4 The HTDP shall coordinate and advertise the sale of equipment by public offer on the Health Technology Sales website for a period of up to fourteen days. The website can be viewed at:

Intranet/QHEPS (on Queensland Health computers only): http://203.147.140.236/hts

Queensland Health Internet: http://www.health.qld.gov.au/hts.

10.4.5 The HTDP shall notify the relevant HHS HTER contact on the outcome achieved for the ‘Close of Offer’ for all listed sale items.

10.4.6 If the equipment is sold, an email requesting the retirement of the asset with revenue shall be sent by HTDP to the relevant HHS HTER contact. The HHS HTER contact shall ensure the relevant Asset Officer is notified so the asset can be retired as soon as possible.

10.4.7 Delegated officers shall ensure that proceeds of sales are receipted to General Ledger account 460000 for non-current assets or 460010 for items with an acquisition value of less than $5,000 (GST exclusive).

10.4.8 Delegated officers shall ensure that equipment sold remains exactly as advertised to prevent any unnecessary compensation having to be made to purchasers.

10.4.9 Delegated officers shall ensure equipment is de-identified including the removal of Queensland Health barcodes and asset numbers prior to collection.

10.4.10 Delegated officers shall ensure all sensitive and confidential information, particularly patient information, is removed or erased from the equipment before it is collected.

10.4.11 Radiation apparatus that is sold shall comply with Queensland Health Radiation Safety requirements. The HHS Radiation Safety Officer and HTDP shall ensure the appropriate applications are completed and approved by the Radiation Health Unit before removal or collection of the equipment takes place.

http://203.147.140.236/hts

http://www.health.qld.gov.au/hts




10.4.12 If the equipment does not sell, an email requesting the item be donated locally or written-off and/or scrapped shall be sent by the HTDP to the relevant HHS HTER contact.

10.5 Donation:

10.5.1 Replaced equipment that is unable or unsuitable to be cascaded, which can not be used for spare parts or is unable or unsuitable for sale may be donated to organisations that can demonstrate the use of donated equipment for charitable purposes.

10.5.2 After an equipment item has been deemed suitable for donation, HHSs shall only offer it to locally based organisations that can demonstrate the use of donated equipment for charitable purposes both within Australia or overseas.

10.5.3 Queensland Health has a duty of care when donating retired equipment to ensure the following issues/requirements have been considered:

Hospital equipment is only donated to reputable charities

The equipment being donated is in a suitable condition for continued safe use

There is agreement between parties that damaged equipment being donated is to be accepted, refurbished or repaired by the recipient

The equipment being donated is not going to be a cost impost for the receiver in terms of repairs and spare parts

Service regimes by a qualified technician are available

Where applicable, consumables for the equipment can be easily sourced; and

Power and associated infrastructure is sufficiently suitable for the equipment to be utilised.

10.5.4 Equipment being donated should be approved by the correct delegate within the HHS.

10.5.5 HHSs must ensure that all sensitive and confidential information, particularly patient information, has been removed or erased from this equipment if applicable. This should also include any intellectual property. The equipment should be de-identified including removal of Queensland Health barcodes and asset numbers prior to donation.

10.5.6 HHSs should ensure that when donating equipment that it is undertaken in compliance with the relevant legislation, particularly the Therapeutic Goods Administration Act 1989 (Commonwealth) and Electrical Safety Act 2002 (Queensland). The HTDP Standard Terms and Conditions are available for use by HHSs when donating equipment and are compliant under this legislation.




10.5.7 Some donated equipment items may be subject to Radiation Safety requirements. A license is required by the recipient to acquire or possess radioactive materials, and the paperwork must be completed for each piece of donated equipment which possesses radioactive materials. The HHS Radiation Safety Officer must ensure the applicable forms are completed and approved by Radiation Health before donation of the equipment takes place.

10.6 Scrapping:

10.6.1 If an asset is deemed unsuitable for disposal by cascading, cannibalising for spare parts, sale or donation the HHS has the option to recommend the equipment item for condemnation (write-off the asset) and classify it as ‘scrap’.

10.6.2 An asset shall only be scrapped where the accountable officer is sure that its value, location or nature doesn’t justify the expense of the sales option.

10.6.3 Where an item is recommended for disposal by scrapping, the relevant Asset Officer shall be notified to ensure the asset is retired from the financial asset register.

10.6.3 Officers approving the scrapping of such assets shall ensure the disposal will not create an environmental hazard. The asset must be scrapped at an approved site for the type of material being disposed. Where possible, equipment to be scrapped should be recycled appropriately.

10.6.4 HTDP may assist with the de-installation and disposal of fixed medical imaging equipment and other equipment upon agreement that is replaced under the HTER Program. Unless otherwise agreed, the HTDP will cover de-installation costs only where the equipment has a potential for sale via the Health Technology Sales website and has been listed with no offers received. The HTDP requires a minimum of 6 weeks to attempt sale and arrange quotations for the removal of these items.

11. Definition of Terms

Term Definition / Explanation / Details Source

Capital Acquisition Plan (CAP)

Represents the departments plan for the acquisition, development or enhancement of noncurrent assets over the next five years. The CAP details both acquisitions and associated funding sources

Capital Funding Policy

Capital Funding Capital funding represents cash provided to or built up by the Department that can be used for the acquisition, development or enhancement of non current assets


Division Health Service and Clinical Innovation Division or System Support Services Division or System Policy and Performance Division or Health Services Support Agency (HSSA)

QHEPS




Division/s/al Program/Project Head

Senior Director/Manager of a program/project, e.g. Director Health Technology Assessment (HTA) program

QHEPS

Endorse Endorse means to support or recommend a course of action that ultimately will support an approval decision


Equipment or Master Lists

Refer to the prioritised equipment lists produced by HHS or QH Divisions for the HTER Program

HTER Program

FAMMIS Finance and Materials Management Information System - (FAMMIS) is an integrated business management solution which utilises SAP R/3 enterprise resource planning software. It allows QH to consolidate a range of business processing and reporting functions and implement accrual accounting across all HHSs and the System Manager/Queensland Health

FAMMIS

Governor In Council (GIC)

When the Governor acts on the advice of Executive Council, the Governor acts as the 'Governor in Council'. The Governor in Council gives effect to the decisions of the Ministry

FMPM

Health Technology (HT) Number

Health Technology number allocated to each item of equipment on the HTER list

Allocated by HSPLB

Medical Equipment (MEDEQP)

Medical Equipment as detailed in the Implementation Standard – Health Technology and General Medical Equipment

FAMMIS

Policy Custodian The Officer who is responsible to lead the development of a policy and/or oversight implementation and review of the approved policy


Single Asset Identifier (SAID)

Provides a single numbering system to uniquely identify both Financial Assets and Maintainable Items

SAID Implementation Policy (SAID) Standard

12. Consultation

Key stakeholders (position and business area) who reviewed this version were:

Regulatory Instruments Unit, System Performance and Policy Division

Financial Policy, Finance Branch, System Support Services Division

Health Infrastructure Branch, System Support Services Division

Health Service Districts (prior to 1/7/12)

Queensland Health Service Divisions

Health Infrastructure Projects Executive Committee, and

Resource Executive Committee.




13. Procedure Revision and Approval History

Version No.

Modified by Amendments authorised by Approved by

14. Approval and Implementation Policy Custodian:

Senior Director, Finance in Practice, Finance Branch

Approving Officer:

Deputy Director-General, System Support Services Division Approval date: 19/02/2013

Effective from: 02/01/2013

Attachments:

1. HTER Equipment Development Check List

2. HHS Chair/Chief Executive Endorsement of 20xx-20xx Health Technology Equipment Replacement Program Equipment List Content and Priorities and Funding

3. HTER Equipment List Change Form

Schedule:

1. How to Create an initial HTER Priority List – within the CMMS

Attachment 1 HTER Procedures

HTER Equipment Development Check List

When creating equipment lists, Hospital and Health Services (HHSs), Queensland Health (QH) Divisions and Statewide Initiatives funded under the Health Technology Equipment Replacement (HTER) program are to address each of the Equipment Development Check List criteria, listed in Table 1, to ensure all possible engagement strategies and factors have been considered or actioned as applicable.

Addressing check list criteria will ensure that appropriate equipment is included and aligned with clinical and service priorities.

The Equipment Development Check List is designed to promote minimal equipment list changes other than where clinical and service priorities need to be realigned with a HHS. This then allows the procurement process to progress with minimal disruption to equipment delivery.

The Equipment Development Check List process begins once funding allocations have been received by HHSs and QH Divisional Finance Officers.

A HHS should decide on a methodology to address all those considerations listed in Table 1 and apply those applicable to the individual HHS. A HHS may elect to utilise stakeholder engagement strategies that include written guidelines or instructions (based on Table 1 criteria), supplying written information on service or maintenance costs, by conducting formal meetings and discussions or may choose some other form of communication medium. What is most important is that all relevant stakeholders are consulted and all criteria are considered.

Table 1: HTER Equipment Development Check List Considerations

Criteria Requirement Engagement/Responsibility Considerations and Actions Completed Equipment List Creation: Stage 1: Initial Equipment List Creation

HHS Personnel

HTER Teams/ Representative/s

Confirm Notional HTER funding allocations.

Determine HHS equipment list creation timetable for information collection, list compilation, completion and submission to HTER.

Create HTER Priority Report in accordance with Schedule 1.

Determine parent/child relationships. Ensure equipment valued at <$5000 is included for consideration under this category.

Complete HTER list Template.

Determine engagement methodology with stakeholders.

Arrange Stage 2 meetings with all stakeholders, as well as any associated data/correspondence for those meetings.

Note: Some HHSs may opt to prepare a complete list of assets which may include the service and maintenance costs associated with each item.

Systems and Reports

CMMS HHSs and QH Divisions are to create a HTER Priority report. This is detailed in Schedule 1, ‘How to Create an initial HTER Priority List’.

Equipment List Creation: Stage 2: Considerations and Consultation

HHS Personnel

HTER Teams/ Representative/s Asset Managers Business Managers Departmental Finance Officers

BEMs Manager

BTS Representative/s

Clinicians:

Engage and consult all Department/Wards/Stores to gain information concerning service delivery issues with equipment (e.g. poor serviceability or technical obsolescence).

Conduct and document all meetings and discussions with all stakeholders. INCLUDE THE FOLLOWING CONSIDERATIONS Identify and discuss Service and Clinical Equipment Priorities to determine:

Additional equipment requiring replacement that may not, as yet, have reached its end of life cycle for replacement purposes.

Time line requirements for delivery to meet clinical and service needs.

- Department Heads

- DONs

- Ward Staff

- Senior Physicians

Equipment List Priorities by working or line area. Financial Considerations:

Maintenance costs.

Funding limitations versus equipment priorities.

Equipment <$5,000 thresh hold – Seek approval by the QH CFO if required.

Ensure equipment with a parent/child relationship is considered as a total value.

Residual Costs – Write Off – Equipment to be disposed of - Delegations needed.

Extending equipment end of life.

Separate HTER funded equipment purchases from those items funded by the HHS or QH Divisional Programs/Projects. Maintenance Considerations:

Age of equipment.

Clinical or Technological Obsolescence.

Is the equipment in good working order and meeting clinical and service needs.

Determine on going maintenance issues and associated costs.

Whether maintenance of equipment is supported (e.g. with BTS). Redevelopment Considerations:

Changes to clinical services through redevelopment (e.g. will current equipment be required when project is completed if services are to change).

Will items be replaced through redevelopment funding.

Redevelopment timelines and schedules that may impact on when equipment is delivered.

HHSs are to consider the disposals process to determine:

The replacement of HHS equipment through the Cascade process. Note: HHSs may elect to provide relevant stakeholders with only a list of equipment due for replacement or a complete list of Health Technology or MEDEQP Assets.

Systems and Reports

CMMS HHS Asset Registers BEMS and BTS Maintenance Systems Stock-take Reports.

To allow a thorough evaluation of what equipment is to be included for replacement HHSs and QH Divisions are to interrogate all available systems and reports to gather data on Health Technology and Medical Equipment. Information required would include the following:

- Equipment condition and serviceability,

- Technological viability,

- Age and Depreciated value, and

- Equipment maintenance records and associated costs.

Equipment List Creation: Stage 3: Consolidation

HHS Personnel

HTER Representative/s

Collate and consider all information gathered that is to be evaluated by HHSs or QH Divisional stakeholders.

Once evaluated, create proposed Master HTER list in order of priority, ensuring:

- HHS requirements are recorded in the equipment list comments section.

- Funding allocation alignment is correct.

- Equipment details are correct.

- Parent/Child details are correct.

- There is no equipment ‘double ups’.

Identify equipment requiring Business Case justification and approval (all equipment with a value of $1M+).

Circulate Master HTER (interim) equipment list to stakeholders for initial comment and feedback on equipment inclusions and priorities.

Evaluate feedback and seek further consultation if required within the HHS or QH Division.

Arrange Stage 4 Meeting to confirm Service and Clinical Priorities.

Equipment List Creation: Stage 4: Confirmation

HHS Personnel

HTER Representative/s CFO Business Managers Clinicians:

- Department Heads

Confirm HTER list inclusions meet with Service Delivery and Clinical Priorities.

Confirm financial considerations provide the best outcomes for the HHS in relation to equipment funding availability.

Consider ‘Write Off Cost’ impacts to the HHS where equipment is being considered for replacement that has not been fully depreciated (still has a

- DONs

residual value).

HHS CFO to allocate the preparation of Business Case justifications to appropriate staff (e.g. a Business Manager).

Complete all Master HTER list inclusions/changes.

Collate all documentation for approval of the HHS Chair/Chief Executive.

Equipment List Creation: Stage 5: Approval/Endorsement

HHS Personnel and HTER Program Team

HHS Chair/Chief Executive HTER Representative/s

Submit all documentation to the HHS Chair/Chief Executive Officer (or delegate officer) for written approval. This includes:

- HHS Business Area Funding Allocations in accordance with Attachment 2.

- HTER list content and order of priorities in accordance with Attachment 2.

- Business Cases.

Complete any amendments or actions required by the HHS Chair/Chief Executive and seek final approval if required.

Forward confirmed equipment lists to the HTER Team at Corporate Office, including the HHS Chair/Chief Executive Funding and Equipment List memorandum of approval (Attachment 2).


Department of Health

MEMORANDUM

To: Click, enter Addressee Name, Title

Copies to: Click, enter CC's Name/s, Title/s

From: Click, enter Sender's Name and Title

Contact No:

Sender's Tel Number

Fax No: Sender's Fax Number

Subject: Endorsement of 20xx-20xx Health Technology Equipment Replacement Program Equipment List Content, Priorities and Funding Allocation

File Ref: Ref Number

As the Chair/Chief Executive for the xxx Hospital and Health Service, I endorse the attached 20xx-20xx Health Technology Equipment Replacement (HTER) Program priority list. With this I endorse the following notional funding allocations for xx business areas:

Business Area

(BA)

SSS BA Notional

Funding Allocation

Confirmed HHS

Funding Notional

Allocations for BA

Variance

Decrease/Increase

Click, enter name Click, enter title / /


HTER Equipment List Change Form

HT Equipment Replacement Process 12/03/12

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Schedule 1

HTER Procedures

How to Create an Initial HTER Priority

List

within the

Computerised Maintenance Management System (CMMS)

HT Equipment Replacement Process 12/03/12

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TABLE OF CONTENTS

1 HOW TO CREATE A PRIORITY LIST ...................................................................................... 4

2 HOW TO EXPORT PRIORITY LIST TO A LOCAL FILE .......................................................... 5

1 How to Create a Priority List

This process enables you to create a priority listing of all health technology equipment, residing within the CMMS, for the HTER Program.

Menu Path: Plant Maintenance - Business Reporting > Technical Objects > FL/EQ Lists > Display Equipment List

Transaction Code: ZE09

OR

Menu Path: FL/EQ Master Data > Equipment > Change Equipment List

Transaction Code: ZE08

Note

As a minimum, the following fields must be populated

Display Variant

/QHEALTH_100 Click on to select the display variant HTER Listing

Additional Data

Descriptions Selecting this tick box specifies that descriptions are retrieved and available for display.

Life/Value Selecting this tick box specifies that information on life/value is retrieved and available for display.

HTER Data Selecting this tick box specifies that data contained within the HTER tabs is retrieved and available for display.

Location

Maintenance Plant Enter the plant to be reported on.

Note: If multiple plants are required, click on the multiple selection button and

enter the relevant plant numbers.

General Data

Owner Enter HTEQ: Health Technology Equipment.

HTER – If this section is not available click on the button to show all fields

Equip Status

To ensure that the list generated does not include health technology equipment that has already been replaced, enter HTFIN: Health Technology Finalised Equipment.

Use the Selection Options button to exclude this value from

selection. The selected icon next to this field should look like this .

Once the required fields have been populated click on the execute button .

The HTER listing will be generated, ready to be exported to a spreadsheet for further action.

2 How to Export Priority List to a Local File

This process enables you to export the HTER Priority List to an excel spreadsheet.

Once the HTER listing has generated click on the File button to download the list to an excel spreadsheet

The “Save list in file…” window will display. Select the spreadsheet option as shown below and

then click on to continue.

The “Transfer DAT to a local File” window will then appear. Click on the browse button to navigate to the local file location that you wish to save your data to. Then click on the transfer button.

Your data is now ready to be opened in Microsoft Excel.

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