Productive Partnerships: Ideas on Maximizing Value with Your Distributor
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2 Elizabeth Hilla, Senior VP, HIDA Christopher Johnson, Supply Chain Operations Manager, Tufts Medical Center John Gould, VP of Operations, Catholic Health Initiatives Integrated Supply Chain Dennis Mullins, Director of Supply Chain Integration, Baylor Scott & White Health Productive Partnerships: Ideas on Maximizing Value with Your Distributor
3 About HIDA Health Industry Distributors Association (HIDA) Trade association representing healthcare distributors 125 member distributors 130 manufacturers who use distribution Serving approximately 295,000 healthcare facilities across the U.S.
4 Streamlining Healthcare
5 Tufts Medical Center Our Mission We strive to heal, to comfort, to teach, to learn and to seek the knowledge to promote health and prevent disease. Our patients and their families are at the center of everything we do. We dedicate ourselves to furthering our rich tradition of health care innovation, leadership, charity and the highest standard of care and service to all in our community.
6 Tufts Medical Center Our History Founded in 1796 by forward-thinking Patriots like Paul Revere and Sam Adams Boston Dispensary was first permanent medical facility in New England and one of first in country 3 rd oldest hospital in the country
7 Our History Floating Hospital In 1894, Floating Hospital began sailing Boston Harbor to help sick children and their mothers During 31 years at sea, Floating Hospital was the site of many important medical advances, including the development of baby formula and the human milk bank.
8 Who We Are Now Tertiary/Quaternary AMC 415 beds, 24 bassinets 98 intensive care beds 573 medical staff 19,914 inpatient discharges Case Mix Index: Medicare 2.0 Level I Adult and Pediatric Trauma Centers 41,065 emergency department visits 60 outpatient clinics 350,957 visits (FY 2013 discharges/visits)
9 Part of Our Neighborhood In downtown Boston s Chinatown/Theater District neighborhood, also serving South Boston and Back Bay 12 buildings 1.4 million sq. ft. Integrated campus
10 Tufts Supply Chain Acute: LUM program with regional distributor Carts delivered to loading dock tagged for all departments 5 deliveries per week -- arrives at 11pm Sunday thru Thursday 12pm cutoff time 12 hour turnaround time Storeroom being converted into Stat Room Handhelds, Pyxis, and Wavemark generate orders
11 What Keeps Us Awake Readmissions penalties Reimbursement cuts Increases in supply costs Reducing on hand inventory levels Remove nursing/clinicians from supply chain equation
12 Our Supply Chain Challenges and Opportunities Looking to move inventory off-site to reclaim space for patient care old infrastructure with limited space Finding ways to tie outcomes to product choices in order to improve care quality CQO 2 different ORs only 1 CPD Multiple stocking locations for $$ items
13 Catholic Health Initiatives Not-for-profit health system with $20B in assets and $12B in revenue 87 hospitals in 18 states, incl. 21 critical access Over 500 clinics & 3,000 employed physicians 46 home care agencies 40 long term, assisted living, and residential Imagine Better Health
14 CHI s Supply Chain Integrated program including Contracting, Clinical Value Analysis, Operations, Pharmacy, Purchased Svcs, Clinical Engineering, Facilities Mgt, Property & Real Estate Single ERP, Vendor & Item Master Central Procurement & AP in Denver Offsite clinics and physician offices: JIT program with 2 non-acute distributors National Service Lines incorporate supply chain strategies for clinical products
15 What Keeps Us Awake Adjusting to new sites of care at lower reimbursement Increasing costs of higher acuity Covering the costs of EHRs & IT infrastructure requirements
16 Our Supply Chain Challenges and Opportunities Managing new technology opportunities & challenges cost/outcomes/control Maintaining access to good data for identifying opportunities Employing lean principles in operations Finding ways to tie outcomes to product choices in order to improve care quality
17 Baylor Scott and White Health BSWH North (Baylor) BSWH Central (Scott & White)
18 Baylor Scott and White Health The Asset Location model BS&W NTX 90% full case shipments to hospital asset rooms Inventory, 3-7 days in par, 3-7 days in asset rooms The Pick to Par model BS&W CTX 90% eaches shipped to hospitals Inventory, 3-7 days in par, DC
19 What Keeps Us Awake Merger activities Policy/procedures Training Roles and responsibilities Product conversions Speed to conversions Effective transitions System standardization 43 hospitals 6,000+ affiliated physicians
20 Our Supply Chain Challenges Speed to conversions and Opportunities Helps to achieve savings goals Needed to standardize product opportunity process Integrate value analysis into every opportunity Ensure all stakeholders are involved in the process
21 Supply Chain Services Sourcing Informatics Operations PMO & Training Procurement Facility Operations
22 Supply Chain Services Sourcing Informatics Operations New Product Intro VAT Review Contract Development Financial Analysis Nurse Training Masterfile Build Inventory Setup PAR Adjustments Product Conversions PMO & Training Procurement Facility Operations
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