June 23, 2005
HISTORY OF VIHA-CONTRACTED FOOD SERVICES
February 2003: Bill 29 gave Health Authorities the legislative framework to privatize non-patient care services and redirect savings to direct patient care.
April 2003: The triggering of a cost of living allowance (COLA) clause in the HEU contract imposed a significant gap between salary entitlements and the employer’s ability to pay. (Housekeeping and Food Service staff earned an average hourly wage exceeding $19.00, augmented by an extensive benefit package exceeding
23% of the salary, for a total hourly cost of about $24.00 before sick leave and vacation entitlements are applied).
May 16, 2003: HEU staff voted 57 per cent against ratifying an agreement reached with health employers and the provincial government in a province-wide vote on a new framework agreement that would have mitigated cost exposure from the COLA adjustment.
June 10, 2003: A Request for Proposal (RFP) for Retail and Patient Food Services for South Island facilities was issued. Food service includes patient, resident and client meal preparation and delivery, in addition to cafeteria and vending retail services. The objective of the RFP was to realize a comprehensive food services system while exceeding standards that were in place for quality of service, food products and nutrition.
October 15, 2003: RFP for Food Services closed. Three firms submitted bids covering all or part of the facilities in the RFP. Each proposal was assessed on the ability to: provide the standard of quality as set out in RFP using professional guidelines for clinical dietetics and other accepted dietary standards; enhanced food service delivery through capital investments; and meet or exceed the cost reduction targets.
February 23, 2004: VIHA announced awarding of contract to Morrison Health Care
Food Services for patient and retail food services in South Island facilities. The company is a division of Compass Group Canada.
February 28, 2004: VIHA signed contracts with Morrison. Standards for quality and service are set out in the contract at a level that will maintain or improve the quality of food services at VIHA facilities.
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July – October 2004 : Food service (patient and retail) operations transitioned from
VIHA to Morrison at Saanich Peninsula Hospital in July, followed by the Juan de
Fuca Hospital sites and Queen Alexandra Centre for Children’s Health in August,
Victoria General Hospital in September and Royal Jubilee Hospital in October.
November 2004: Following renovations, Morrison opened the food preparation area at the Royal Jubilee Hospital. This became the centralized food preparation location for all South Island facilities in January 2005.
Contracting out of food and housekeeping services will provide VIHA with up to $10 million in direct savings per year for a guaranteed term of five years. VIHA has the option to extend the contract for an additional five years.
In addition to the direct cost savings, as part of Morrison’s commitment, they made a significant capital investment ($5.5 million) in new food preparation and delivery equipment, a new patient food information system as well as renovations to kitchens at VIHA facilities. All capital investments made by the contractor revert to VIHA at end of contract, allowing the Health Authority to avoid capital costs associated with upgrading equipment, information systems and facilities.
Morrison is a full service contractor and manages all costs associated with food operations including: equipment purchase and repairs, supplies acquisition and management, safety of food preparation, customer satisfaction, staff hiring and training, and other staff related items i.e. health and safety, payroll, bonding, insurance, WCB, uniforms and security.
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For more information:
Suzanne Germain
VIHA Communications
250-370-8270
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