2012 IDN Summit Supply Chain of Excellence Award Winners
of Supply Chain of Excellence Awards
Healthcare executives from across the country have cast their votes and selected four category winners for the 2012 IDN Summit Supply Chain of Excellence Awards competition. The awards recognize best practices and innovative ideas from healthcare systems that have achieved critical supply chain efficiencies. The four winners—one in each of three size categories as well as the new regional purchasing cooperative category—will be recognized at the 2012 Spring IDN Summit and Reverse Expo, April 23-25 in Orlando, Fla., where they will go on to compete for the opportunity to be named overall National Award winner.
This year's category winners are:
St. Anthony’s Medical Center, St. Louis, Mo.
Located in a highly competitive suburban environment, St. Anthony’s set out to become a Top 10 Cardiology Center of Excellence. But in addition to enhancing outcomes, St. Anthony’s sought to address the high cost of care by supporting relationship building between medical center physicians and supply chain.
The driving force behind the success of the initiative was the Cardiology Supply and Contracting Committee. Physician representatives from cardiology, interventional radiology, electrophysiology and peripheral vascular, along with the director supply chain, business director of cardiology and key clinicians helped ensure the committee’s ability to gain organization-wide support. The reward for the effort was an initiative that utilizes a true partnership between physicians and facility to drive down supply chain costs.
Doing more with less was the rallying cry for Johns Hopkins Health System as it sought to meet the demands of reduced spending, expanded affiliation responsibilities, staff loss and the largest construction project to be undertaken by a healthcare system. Out of such challenges came innovation. As a self-contracting procurement department, supply chain operations at Johns Hopkins engaged a third party internet-based bidding forum in an effort to stay competitive in the marketplace.
Incorporating new technology into its process brought with it some unique challenges, including a great deal of skepticism among stakeholders. Positive outcomes, such as savings yielding an average of 23 percent, have been helpful in maintaining necessary buy-in.
Eliminating utilization variances and engaging physicians were just a couple of the goals when Banner Health incorporated supply utilization into the system’s strategic initiatives in 2010. The transformation was not focused wholly on the supply chain division, but is working toward whole cultural transformation.
The initiative fostered greater collaboration between physicians and supply chain to decrease supply utilization per procedure by reducing physician-sensitive procedurally related supplies. The initiative surpassed its 2011 base target of $2M and stretch target of $2.8M in supply savings in the cath lab or supply expense. As it continued to engage leadership, three regional VP CFOs were added as core team members and a 2 percent supply reduction was removed from the 2012 budget.
Leaders from seven IDNs came together back in 2007 with the VHA Upper Midwest office to discuss the creation of a regional purchasing model, the Upper Midwest Consolidated Services Center. The goal was to address some of the issues faced by providers and their GPOs in gaining stronger contract value, and addressing the need for supplier and product standardization.
The results have exceeded member expectations with UMCSC negotiating and approving over 200 product agreements and savings have surpassed $75M. Members have averaged 12 percent savings per agreement. UMCSC's geographical reach has grown from eight states to 18 states since its creation.
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