Ministry Innovation Round Table

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1 Ministry Innovation Round Table Sarah Friesen, COHPA Marian Macdonald, Ministry of Government and Consumer Services Bill Mantel, Ministry of Research & Innovation and Economic Development

2 Pa$ents First: Ac$on Plan for Health Care and Ontario s Strategic Priori$es

Change is Necessary to Our Environment Ontario s health care system is facing

investment growth are not seen to be sustainable Demographic Challenge The cost of

will result in a higher cost to the system Complex Health Challenge A small number

care resources so people get the most appropriate care Unhealthy Lifestyle

3 Change is Necessary to Our Environment Ontario s health care system is facing significant challenges over the next few years Fiscal Challenge Historic levels of investment growth are not seen to be sustainable Demographic Challenge The cost of care for a senior is 3x higher than for the average person Changing demographics will result in a higher cost to the system Complex Health Challenge A small number of pa>ents use a dispropor>onate amount of resources Making becer use of our health care resources so people get the most appropriate care Unhealthy Lifestyle Challenge Unhealthy ea>ng, lack of ac>vity and smoking levels may lead to increased chronic disease 3

4 Ontario s Ac$on Plan What We ve Already Achieved Over the past two years of transforma;on, we have achieved significant milestones in several key areas. Achieving these while reducing our growth from 6% to 3% has been challenging. Looking forward, we need to learn from the road bumps that we ve encountered and con;nue down the path to transforma;on. 2012: Start of Transforma$on Journey Historic 6% growth Totalling over 40% of provincial budget Community Capacity Expanded home and community care Improving Access Primary Care Reform Health Promo$on Healthy Kids Strategy Smoke Free Ontario Health Human Resources Expanded Scope of Prac>ce Improving Quality Implemen>ng the Excellent Care for All Act Fairer Funding Labour Agreements Quality Based Procedures Drug costs Integra$on 67 Health Links Complex Con>nuing Care Models Fully Implemented Transforma$on Holding at 2% growth per year 4

It exemplifies the commitment to put people and pa>ents at the centre of the system by

5 Pa$ents First: Ac$on Plan for Health Care On February 2, the Minister announced Pa;ents First, the next phase of Ontario's plan for changing and improving Ontario's health system It exemplifies the commitment to put people and pa>ents at the centre of the system by focusing on puxng pa>ents' needs first This plan focuses on four key objec>ves and four policy pillars: 5

Bridging To The Next Phase of Transforma$on While progress has been made, there is much more to do. We are deepening our efforts in certain areas to drive results.

sector to all parts of the system Scale key elements of Health Link success to expand integrated coordinated care Strengthen commitment to meaningful pa$ent/resident engagement BeCer understand the

6 Bridging To The Next Phase of Transforma$on While progress has been made, there is much more to do. We are deepening our efforts in certain areas to drive results. Spread high performing models of integrated home and community care Test early success in integrated funding Spread learnings from implementa>on of quality and evidence based funding in the acute sector to all parts of the system Scale key elements of Health Link success to expand integrated coordinated care Strengthen commitment to meaningful pa$ent/resident engagement BeCer understand the needs of pa>ents requiring mental health and addic$ons supports Support by linking quality, value and performance through greater accountability for results and transparency in decision making. Con>nue to evaluate the way we think of and deliver services. Maintaining system growth at 2% requires innova>ve approaches to delivery and a relentless focus on value for money. 6

Sector Leadership and Excellence are Cri$cal To bridge from pockets of excellence, a variety of efforts is needed to support greater spread, including: System supports for development and adop>on of

7 Sector Leadership and Excellence are Cri$cal To bridge from pockets of excellence, a variety of efforts is needed to support greater spread, including: System supports for development and adop>on of innova>on Improved procurement to enhance recogni>on and uptake of promising technologies Meaningful pa7ent engagement to co- design transforma>on Scale up ini7a7ves where investments have shown results Deepen funding reform and review benefits Manage pace of change by ensuring change supports are in place Leverage champions from the sector Posi7on strong leaders at the forefront who can deliver on the vision 7

8 What Does Success Look Like? Performance Measurement Sustainable Healthier Integrated Accessible Innova$ve High Quality Manage within 2% growth Invest >2% in key areas Hold mature areas at 0% More days at home More years of healthy life Reduce unnecessary visits More days at home Care in appropriate sezng Smoother transi$ons Improve coordinated care 100% pa>ents with primary care provider Increase same day/next day Reduce wait $mes Be[er availability / more effec$ve drugs Shared clinical best prac$ces Up- to- date appropriate technology Improve pa$ent/resident sa$sfac$on Improve pa$ent/resident knowledge and educa$on in decision making 8

9 New Opportunities for Health Innovation Bill Mantel, Assistant Deputy Minister Research, Commercialization and Entrepreneurship Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure

10 What We Deliver Accelerate innovation activity from research to market BUSINESS DEVELOPMENT & ACCELERATION TECHNOLOGY & PRODUCT DEVELOPMENT YOUTH ENTREPRENEURSHIP RISK CAPITAL DEVELOP RESEARCH TALENT & IDEAS Ontario Innovation Ecosystem SCALE UP TECHNOLOGY & ADAPTATION Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 10

11 Innovation Strategy Ø Research, Talent and Ideas Ø Business Accelera$on, Growth, Entrepreneurship Research, Talent and Ideas Youth Ø Risk Capital Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 11

12 Innovation Delivery Channels Research, Talent and Ideas Provide talented researchers with the capital and opera>onal support to undertake globally compe>>ve, transforma>onal, cuxng- edge research Ensure Ontario maximizes the economic impact of its investments in research through technology and knowledge transfer ac>vi>es Harness research infrastructure and talent to help companies Nurture, acract and retain top- notch researchers and innovators in Ontario Youth Science & Technology Business Accelera$on, Growth, Entrepreneurship and Youth Assist firms with: Ø Product (services) development Ø Process improvements Ø Business innova>on and talent Ø Talent Strategy, financing and mentorship Entrepreneur Networks (e.g., market intelligence, mentorship) Youth Entrepreneurship, including vulnerable youth Product- to- market strategic alliances Entrepreneur & start- up mentorship Risk Capital Access to risk capital and financing (investor readiness) Quality deal flow that encourages investors to remain ac>ve in risk capital Build investor skills and provide linkages to investment opportuni>es Support the emergence of a new genera>on of fund managers Catalyze a larger Ontario- based risk capital industry that delivers stronger returns Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 12

13 Regional Innovation Centres (RICs) 13 Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure

Ontario s Entrepreneurship Environment is Strong McKinsey and the Global Entrepreneurship Monitor both report that Canada s (Ontario s) entrepreneurship rate is at the top among the innovation-driven

14 Ontario s Entrepreneurship Environment is Strong McKinsey and the Global Entrepreneurship Monitor both report that Canada s (Ontario s) entrepreneurship rate is at the top among the innovation-driven economies (Canada ranked 2nd) The Start-up Genome study ranked Toronto 8th and Waterloo 16th globally Ontario incubators / accelerators are ranking among the top in the world PricewaterhouseCoopers 2014 Cities of Opportunity index of 30 global cities ranked Toronto 2nd in ease of starting a business, 3rd in total corporate tax rate, and 7th in entrepreneurship environment Communitech was selected by Google to be a member of Google for Entrepreneurs one of only 7 in the world, and the only one in Canada Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 14

15 We are Networked with 300 Partners YOUTH v 123 Youth Focussed Organizations RESEARCH v 50 Research Institutions and Hospitals v 42 Universities and Colleges ENTREPRENEURS v 18 Regional Innovation Centres v 57 Small Business Enterprise Centres v 12 Network of Angel Organizations v 5 Sector Innovation Centres Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 15

Big Markers for Innovation Globally Significant research base Unique concentration and critical mass of research Dynamic start-up ecosystem Maturing venture

16 Big Markers for Innovation Globally Significant research base Unique concentration and critical mass of research Dynamic start-up ecosystem Maturing venture capital system Health system with strong demand for innovation Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 16

17 Next Priority: Health System Innovation v Strong health technology sector, world-leading research capacity in Ontario v Tremendous opportunity to innovate within the health system by bringing together entrepreneurs, clinicians and patients v But to enable fertile ground for innovation structural changes to health system required Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 17

18 Next Priority: Health System Innovation Novadaq 2014 Revenue: $40M Total units sold in US: 1,000 Total units sold in Canada: >5 Missed opportunity? Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 18

19 Ontario Health Innovation Council v Government created council to advise on accelerating take-up of innovation in health system v New solutions required for health system sustainability and continuing improvement of quality of care v Need to capture greater value from new disruptive technologies (genomics, mobile, big data, cloud, robotics) and new norms (consumer-driven health care, shared patient records) v Our health tech sector: untapped potential deliver solutions Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 19

20 Council Report: The Catalyst 1. Establish an Office of the Chief Health Innovation Strategist 2. Appoint Innovation Brokers to Connect Innovators with Resources 3. Invest in Made-in-Ontario Technologies 4. Accelerate the Shift to Strategic, Value-Based Procurement 5. Create Incentives and Remove Barriers to Innovation 6. Optimize the Pathways to Adoption and Diffusion of Innovation Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 20

21 Chief Health Innovation Strategist v Provide the leadership to make Ontario a major centre for health technology innovation v Collaborate with government, industry and health providers to set priorities and population needs v Align innovation efforts across health system v International search taking place: Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 21

22 Innovation Brokers v On-the-ground to connect entrepreneurs with resources and people needed to advance innovations v Single point of access to health system decision makers, test sites for gathering feedback from patients and clinicians, and funding for development and commercialization of innovative health technologies v Brokers to be selected by the Chief Strategist Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 22

23 Supporting Ontario Health Technologies v $20-million Health Technology Fund to support earlystage development, assessment and adoption v Access to early stage financing to develop a prototype or proof of concept v Feedback from health system clinicians, patients, procurement to support market-ready technologies v Evidence from evaluation projects to attract additional investment and move towards adoption Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 23

I can go on and on and on, but the bottom line is that we are innovating at an unprecedented rate The best part: it isn t governments that will lead this charge; it will

24 I can go on and on and on, but the bottom line is that we are innovating at an unprecedented rate The best part: it isn t governments that will lead this charge; it will be the world s entrepreneurs. Vivek Wadhwa, Singularity University Ministry of Research and Innovation Ministry of Economic Development, Employment and Infrastructure 24

Macdonald Assistant Deputy Minister Supply Chain

25 Healthcare Supply Chain Network Conference May 12, 2015 Procuring for Innovative Solutions Marian Macdonald Assistant Deputy Minister Supply Chain Ontario Ministry of Government and Consumer Services 25

26 Supply Chain Ontario /14 $5.99 billion annual government procurement spend 1,424 annual ministry procurements over 66 enterprise VOR arrangements valued at $538 million 89% of spend is with vendors located in Ontario 386 hospital sector shared service organizations approx. 53K vendors each year 9 1 education/higher learning sector purchasing collaborative BPS entities have or are participating in supply chain or back office initiatives 26

Commitment to Continuous Improvement SCO has leveraged Lean methodologies to launch process improvement projects over the past 4 years,

of technology Building organizational capacity including technical and commodity expertise by streamlining business processes Enhancing

with simplified layout and plain language Enhanced vendor performance management strategy Projects to address sourcing difficulties in

27 Commitment to Continuous Improvement SCO has leveraged Lean methodologies to launch process improvement projects over the past 4 years, driving the following benefits to both buyers and vendors: Reducing the time to procure through simplified processes and increased use of technology Building organizational capacity including technical and commodity expertise by streamlining business processes Enhancing service through improved responsiveness and increased consultations with the vendor community Introduction of Request for Bids template with simplified layout and plain language Enhanced vendor performance management strategy Projects to address sourcing difficulties in business sectors such as medical and consulting industries Forms-based evaluations reducing evaluation time to days rather than weeks 27

Innovation Procurement Initiative Ministry of Government and Consumer Services (MGCS) has developed an Innovation Procurement Initiative that aims to enable and foster innovation in Ontario.

28 Innovation Procurement Initiative Ministry of Government and Consumer Services (MGCS) has developed an Innovation Procurement Initiative that aims to enable and foster innovation in Ontario. Builds on procurement best practices of other jurisdictions Aligns with other innovation initiatives across Ontario Addresses challenges and creates opportunities Leverages the OntarioBuys program 28

29 Current Innovation Landscape R&D (pre-commercial development) Commercialization Adoption Product idea Solution design Prototype First test products Commercial end products Valley of death: Gap between development and commercial sales. Many products and companies fail at the demonstration and scale up stage Public and private support typically end at the first test product stage Generally, this is where Ontario BPS procurement activities start and suppliers push products to BPS 29

30 Current Gaps in Innovation Procurement R&D (pre-commercial development) Commercialization Adoption Product idea Solution design Prototype First test products Commercial end products 1. Capacity in creating problem statement/identification of needs 2. Buyers/end-users not engaging the market early enough 3. Enhance existing procurement practices: a) Entry points to engagement b) Creating RFPs open for innovation 4. Capacity for change management 5. Understanding of different procurement models 6. Complex innovation ecosystem navigation 7. Data availability and measuring of success 8. Disseminating and replicating success stories 9. Assessment models misalignment 30

Ontario Innovation Procurement Strategy Aligning MGCS efforts with relevant ministries Focusing first on health innovation Identifying policy barriers to innovation Providing guidance on early market

31 Ontario Innovation Procurement Strategy Aligning MGCS efforts with relevant ministries Focusing first on health innovation Identifying policy barriers to innovation Providing guidance on early market engagement and using innovation procurement models Advancing leadership s ability to drive innovation through educating, connecting, and advocating Increasing procurement competency through training and tools Creating a strategic portfolio of demonstrational projects to assess innovation procurement models by leveraging the existing OntarioBuys funding program Engaging key thought leaders to help inform the vision for a long term sustainable model 31

32 OHIC Recommendations 1. Establish an Office of the Chief Health Innovation Strategist 2. Appoint Innovation Brokers to Connect Innovators with Resources 3. Invest in Made-in-Ontario Technologies 4. Accelerate the Shift to Strategic, Value-Based Procurement 5. Create Incentives and Remove Barriers to Innovation 6. Optimize the Pathways to Adoption and Diffusion of Innovation 32

33 OHIC Report Procurement Recommendation #4 Accelerate the Shift to Strategic, Value-Based Procurement, providing innovative solutions that address health system priorities and population needs: Where we are: Fragmented system with few large joint purchasing organizations, many smaller ones Lack of clarity on opportunities, needs and priorities for procurement in the health sector Procurement regarded as an administrative service helping organizations meeting day-today requirements Where we re going (future state): Health system more integrated, fewer procurement organizations, more smaller organizations participating in GPOs & SSOs Early engagement between OCHIS and key stakeholders, to identify opportunities, needs and priorities OCHIS to work with ministries, the health sector and key stakeholders to leverage procurement to solve problems/create value Current system provides limited opportunities for Ontario-based innovators to test new products, sell to early adopters, broadly diffuse innovations Limited number of specialized procurement/ clinical staff involved in health system procurement organizations OCHIS, brokers, stakeholders to provide opportunities to test new products, sell to early adopters and broadly diffuse innovations through clearly defined processes Ministries to work with health system partners to ensure more organizations have access to specialized staff 33

34 Activities Under Way We are working with a number of key organizations to further advance innovation procurement within the BPS by: Increasing the strategic procurement capacity through tools and training Funding demonstration projects to evaluate early engagement models and identify barriers to innovation Creating an assessment tool for healthcare organizations that can be used to determine their readiness to implement innovation projects Hosting partnering forums with key stakeholders to identify public healthcare sector needs and joint solutions Hosting Bootcamps to identify common challenges and developing strategies to engage the vendor community to drive solutions Creating and disseminating innovation adoption case studies based on existing health innovation projects 34

35 Anticipated Outcomes Leadership ability to drive innovation Strategic procurement skills Opportunities for economic development 35

36 Thank you! 36

Ontario s Entrepreneurship Network Strategy Review and Renewal AMO meeting Tuesday, February 19, 2013

Ontario s Entrepreneurship Network Strategy Review and Renewal AMO meeting Tuesday, February 19, 2013 Context for Action 2 Entrepreneurship and innovation are at the heart of the government s jobs and