DHA & DLA-TS Supported MEDLOG Shared Services Update for AMSUS-SM September 16,

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1 CAPT Bernie Poindexter (DHA) Ms. Geneva Polini (DLA-TS) DHA & DLA-TS Supported MEDLOG Shared Services Update for AMSUS-SM September 16, 1

2 DHA Vision A joint, integrated, premier system of health, supporting those who serve in the defense of our country. 2

3 MHS Quadruple Aim Strategic Foundation 3

4 MHS OBJECTIVES 1. Promote more effective and efficient health operations through enhanced enterprise-wide shared services 2. Deliver more comprehensive primary care and integrated health services using advanced patient-centered medical homes 3. Coordinate care over time and across treatment settings to improve outcomes in the management of chronic illness, particularly for patients with complex medical and social problems 4. Match personnel, infrastructure, and funding to current missions, future missions, and population demand 5. Establish more inter-service standards/metrics, and standard process to promote learning and continuous improvement 6. Create enhanced value in military medical markets using an integrated approach in 5-year business plans 7. Align incentives with health and readiness outcomes to reward value creation DHA MEDLOG Division All Hands Meeting 4

5 DEFENSE HEALTH AGENCY What We are Undertaking Sustain readiness, quality, and value to those we serve through a more globally integrated health delivery system building off our battlefield successes! Establish shared services driving common clinical & business processes supported by disciplined policy execution, oversight, and accountability Increase standardization decrease variance/redundancy increase value/efficiency decrease cost! Enhanced Multi-Service Markets (emsms) are a key foundational element; so the question is: Is the business model driving the readiness model or is the readiness model driving the business model? The answer is yes! DHA is the key supporting organization for achieving our Quadruple Aim Bottom Line: MHS status quo not sustainable 5

6 Secretary of Defense Draft - Predecisional POLICY DEVELOPMENT CJCS USD(P&R) ASD(HA) POLICY EXECUTION Combat Support Agency Responsibilities Defense Health Agency Director Deputy Director IPO Chief of Staff Senior Enlisted Advisor Contracting Communications Administration & Management EEOO CAE Organization Comptroller DHA OGC Analytics Healthcare Operations Directorate (CMO) TRICARE Health Plan Pharmacy Clinical Support Research & Development Directorate Health IT Directorate (CIO) Innovation (CTO) Governance, Customer Relations & Mgmt Infrastructure & Operations Education & Training Directorate Business Support Directorate Facility Planning Medical Logistics Budget & Resource Management NCR Medical Directorate Walter Reed National Military Med Center Ft. Belvoir Community Hospital Public Health Solution Delivery Program Integrity Joint Pathology Center Readiness Information Delivery Warrior Care Program Information Security & Privacy As of 7 OCTOBER 2013 DHA MEDLOG Division All Hands Meeting 6

7 10 Shared Services 1 Facility Planning 6 Public Health 2 Medical Logistics 7 Acquisition 3 Health Information Technology 8 Budget & Resource Management 4 TRICARE Health Plan 9 Medical Education & Training 5 Pharmacy Programs 10 Medical Research & Development Implemented by IOC on October 1, 2013 Implemented by FOC on October 1,

8 Our Integrative Environment Defense Medical Logistics (DML) A function of HSS [health service support] that provides the specialized products and services needed by military health care. It includes the management of medical supply, medical equipment and its maintenance, optical fabrication, medical facilities, blood storage and distribution, and the life-cycle management of medical assemblages [DODI ]. Defense Medical Logistics Enterprise (DMLE) The coalition of medical logistics organizations and activities of the Military Departments and the Defense Agencies that provides focus, collaboration, teamwork, and a shared sense of purpose and vision for meeting the needs of military health care across the full range of military operations [DODI ]. The Military Health System (MHS) must function as a jointly interoperable system The Defense Logistics Agency (DLA) serves as the Supplier and the MHS is the Customer within the DML Medical materiel requirements are driven by demands of promoting health and delivering health care Effectiveness and efficiency in acquisition & distribution requires strategies & systems tailored for the medical commodity and supporting the medical system 8

9 DHA & DLA-TS Value Chain for the MHS DHA MedLog Division works with DHA Clinical Support Division and Services leadership to standardize the demand signal for medical supplies, devices, and equipment to eliminate waste and unwarranted variation to deliver $264M in savings FY14-19 DHA MedLog Division synchronizes and optimizes product line purchasing by partnering with DLA-TS to expand e-commerce sourcing solutions (prime vendor and ECAT) for critical medical materiel and reduce government purchase card usage and associated vulnerabilities DHA MedLog Division monitors MTF compliance and influences continued improvements through transparency, trust, and the accelerated replication of supply chain best practices across the MHS. Critical to success and achieving quadruple aim objectives is DHA MEDLOG strong partnership with DLA-TS, Services Medical Logistics Chiefs, and our industry partners

10 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLA Support To DHA Peacetime Logistics Primary medical logistics enabler for DHA Awards and manages Ecommerce programs Prime Vendor; pharmaceuticals and Med/Surg Electronic Catalog; dental, optical, lab and minor equipment Provides traditional (MILSTRIP) and Direct Vendor Delivery support Awards and manages Capital Equipment/Turnkey/MILCON support Awards and manages reverse distribution services Awards and manages pharmaceutical National Contracts Manages Medical Kitting and Assembly Program Provides acquisition and logistics support services Ensures contracted prices are fair and reasonable Provides depot storage for military unique and contingency materiel Enables DHA Standardization Program WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 10 10

11 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLA Support To DHA Contingency Support Contingency Support and Services Warstopper Funding Purchases access to ~$720M of contingency stocks Vendor Managed Inventory Corporate Exigency Contracts Maintains critical medical industrial base Manages Medical Industrial Preparedness Program Extends Defense Working Capital Fund to support wartime operations CONUS Force Projection Sites OCONUS Force Sustainment Sites (Theater Lead Agents) Contracts for Prime Vendor War Readiness Material Supports DHA pandemic programs WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 11 11

12 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Medical Business TMA $1.6B Air Force $906M FY14 Forecast $5.4B Army $1.5B FY13 actual $5.1B Navy $794M Marine Corps $49M Other $251M Pharm PV $3.696B Med/Surg PV $520M Capital Equipment $299M Traditional Med/Surg $169M Traditional Pharm $230M ECAT $138M Hospital $55M WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 12 12

13 WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DLA Points Of Contact Position Name Phone Director, Medical Supply Chain Colonel Alex Zotomayor Deputy Director, Medical Supply Chain Geneva Polini Director, Medical Customer Operations Don Buchwald Director, Medical Supplier Operations Roger Dixon WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 13 13

14 Defense Medical Logistics Enterprise (DMLE) Mission: The Defense Medical Logistics Enterprise provides leadership and synchronizes a coalition of military departments, defense organizations, and other governmental agencies that plan, create, provide and direct medical logistics capabilities supporting healthcare across the full spectrum of military operations Vision: To be the most efficient, effective and customer-focused global supply chain in the Federal Government Strategic Focus/Themes: Spearhead Medical Logistics Innovation Improve Operational Excellence and Readiness Expand and Strengthen Collaborative Relationships

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