Supply Chain DataStandards in HealthcarebyMichael Zirklezirkle_michael@bah.comRyan Gallaghergallagher_ryan_b@bah.comSeth R...
Table of ContentsMaking Healthcare Safer and More Efficient With Supply Chain Data Standards....................... 1Healt...
Supply Chain Data Standards in HealthcareFor many healthcare organizations, the lack of a widely      Health Standards Lan...
What Supply Chain Data                                                   movement and information exchange; however, the  ...
•	 Streamlined inventory management by reducing   process errors and redundancies and providing a            “Industry lea...
Booz Allen Can Help You                                   ReferencesBe Ready for What’s Next                              ...
About the AuthorsMike Zirkle is a Principal at Booz Allen Hamilton      Seth Rogier is an Associate in at Allen and aand a...
About Booz AllenBooz Allen Hamilton has been at the forefront of             deliver enduring results. By combining a cons...
Principal Offices Huntsville, Alabama                     Indianapolis, Indiana                     Philadelphia, Pennsylv...
Upcoming SlideShare
Loading in...5
×

Supply Chain Data Standards in Healthcare

1,060

Published on

Although data standards are not new, they have become an increased priority because without them healthcare organizations experience substantial inaccuracies and inefficiencies in their data.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,060
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Supply Chain Data Standards in Healthcare

  1. 1. Supply Chain DataStandards in HealthcarebyMichael Zirklezirkle_michael@bah.comRyan Gallaghergallagher_ryan_b@bah.comSeth Rogierrogier_seth@bah.com
  2. 2. Table of ContentsMaking Healthcare Safer and More Efficient With Supply Chain Data Standards....................... 1Health Standards Landscape .............................................................................................. 1What Supply Chain Data Standards Look Like ....................................................................... 2Benefits to the Healthcare Industry ..................................................................................... 2Turning Health Supply Chain Data Standards Into a Reality .................................................... 3Conclusion ........................................................................................................................ 3Booz Allen Can Help You Be Ready for What’s Next ............................................................... 4References......................................................................................................................... 4About the Authors............................................................................................................... 5About Booz Allen................................................................................................................. 6Principal Offices.................................................................................................................. 7
  3. 3. Supply Chain Data Standards in HealthcareFor many healthcare organizations, the lack of a widely Health Standards Landscapeadopted supply chain data standard is causing inefficien- Health standards are not new, and the standardscies and errors that are affecting both patient safety and landscape is becoming increasingly active asthe bottom line. information technology (IT) makes rapid data sharingMaking Healthcare Safer and More Efficient easier. Although the industry has several well-With Supply Chain Data Standards documented and generally accepted standards forStandards are a necessary component to efficiently medical terminology, classifications, observations,communicate and exchange information. Common data transmission, and claims, there is no equivalentlylanguages, such as English or French, enable people accepted standard for identifying medical productsto talk to one another, and other types of standards within the supply chain. Existing product identificationare needed for computers and systems to exchange data standards promoted by groups, such as GS1information. However, without standards, whether and the Health Industry Business Communicationin language or technology, conversations must Council (HIBCC), are common; however, nonebe translated, data must be converted, and the have the industry-wide acceptance and adoptionopportunity for error increases. needed to foster seamless interoperability among supply chain partners. Too often, medical productThis is certainly the case in the healthcare supply manufacturers, distributors, and providers have theirchain, where hundreds of thousands of different own unique way of identifying products supportedproducts are bought and sold, yet there is no single by proprietary identification numbers, barcodes, andstandard for the data identifying them. Instead, the siloed IT systems. When one considers the volume ofindustry is hampered by multiple organizations with transactions, value of products being moved, and thecompeting standards. Although supply chain partners implications of medical device identification errors, itare exchanging data more than ever, they are still becomes evident that a problem that appears to bestruggling with the lack of widely adopted data specific to the supply chain is actually a much largerstandards, resulting in: issue that affects the entire healthcare industry.• Data and transaction inefficiencies• Errors when ordering and shipping products Health Standards• Limited or inaccurate data capture on products used Beyond supply chain and identification data• Difficulties tracking products in the event of a recall standards, such as GS1, HIBCC, and ISBT 128, there are many other standards in health-• Costly overhead to build and maintain proprietary care. Current standards exist for messaging, item masters or data sets such as Health Level 7 (HL7), vocabularies• Negative impacts on patient care such as Systemized Nomenclature for Medicine (SNOMED), codes such as InternationalTo overcome these problems, healthcare organizations Classification of Diseases (ICD), and observa-need to collectively strive for quality, accurate, and tion identifiers such as Logical Observations,interoperable data that can be shared among supply Identifiers, Names, and Codes (LOINC).chain partners using a common language, or standard. 1
  4. 4. What Supply Chain Data movement and information exchange; however, the Standards Look Like efficiency and safety of this infrastructure is currently Physical identifiers such as barcodes and radio hindered by low-quality or inaccurate data. With the frequency identification (RFID) tags are used to adoption of a common supply chain data standard, store and transmit product data captured in various healthcare organizations can begin improving this information systems, ranging from automated medical infrastructure and realize value through: supply cabinets to inventory and financial systems. Patient Safety: Currently, these identifiers are not standardized on medical products, leaving organizations with little • Improved traceability throughout the supply chain to other choice than to create their own proprietary item facilitate the identification and removal of recalled or identification data sets and item master catalogs. counterfeit products Non-standard product identification data can lead to • Reduced human error by enabling automatic a host of problems, ranging from inefficient or failed data capture and by reducing any ambiguity when transactions (such as purchase orders) to potentially identifying products harmful identification errors. Conversely, healthcare • Improved post-market surveillance through the industry adoption of a data standard, exemplified by standardization of product information and clinical the grocery industry and the now ubiquitous Universal attributes that can be compared and analyzed Product Code (UPC), would enable healthcare organiza- across databases tions to efficiently and safely identify products while they move through the supply chain (see Exhibit 1). Health Efficiencies: • Reduced information administration and manual Benefits to the Healthcare Industry efforts associated with maintaining proprietary The sheer number and complexity of health products product identifiers within internal IT systems and on requires a robust infrastructure to support product physical barcodes Exhibit 1 | What Supply Chain Standards Look Like Non-standard Product Identification Data Standard Product Identification Data Manufacturer Provider Provider Manufacturer Distributor Manufacturer Provider Distributor ID: 789 123 ID: 789 ID: 123 ID: 123 ID: 123 ID: 123istributor DistributorID: 456 ID: 456 Translation Translation Translation Transaction Transaction Currently, non-standardized medical product identification information A standard identifier used among supply chain partners (such as the causes confusion, errors, and waste throughout the supply chain UPC on grocery products) could help the healthcare industry streamline because many organizations use their own proprietary data to identify operations, enhance product traceability, and ultimately promote patient products while translating information provided by others. safety by reducing identification errors. Source: Booz Allen Hamilton 2
  5. 5. • Streamlined inventory management by reducing process errors and redundancies and providing a “Industry leaders in improving the healthcare foundation for organizations, functions, and systems value chain are the same early adopters of to share information GS1 standards. Early adoption may become a• Increased visibility into the supply chain and competitive advantage in managing data across improved decision support with consistent and the value chain.”2 accurate data that can be compared, aggregated, —Gartner, June 2011 and analyzed• Proactive staff who spend less time trying to obtain and cleanse data and more time analyzing • Raise Awareness. The health supply chain is information to make decisions composed of a wide array of stakeholders who may benefit from the adoption of standards. ToTurning Health Supply Chain raise awareness and encourage support, supplyData Standards Into a Reality chain leaders should communicate the benefits ofSupply chain data standards can make healthcare standards and establish cross-functional teams tosafer and more efficient, but only if industry partners ensure all aspects of the organization support andare willing to adopt them. A number of factors, are prepared for standards adoption.including mounting economic pressures, pending • Collaborate Across the Supply Chain. The benefitsfederal and state regulation, and an industry push for of data standards will accumulate as moreproven standards, are converging to accelerate these organizations adopt them and supply chain partnerscooperative efforts. can begin exchanging information seamlessly. ToAs these factors develop, leading organizations are maximize these benefits, organizations shouldgetting ahead of the curve by championing industry- proactively work with their partners (e.g., vendors,wide adoption of data standards and preparing their group purchasing organizations (GPO), etc.) to raisesupply chains. To turn data standards into a reality, external awareness and establish adoption goals.health organizations and supply chain leaders can • Prepare for Change. Understanding theadvocate for standards through a few key activities: technological, operational, and clinical implications• Engage Industry Trends. Organizations looking of standards is critical for setting expectations, to adopt supply chain data standards should planning for change, and achieving successful stay prepared by actively engaging in the industry execution. Conducting an assessment of these and regulatory trends around them. Leading areas will help organizations define the scope of the organizations and industry groups, such as Mayo effort and understand their level of preparedness. Clinic, GS1 Healthcare US, and the Healthcare Transformation Group, regularly publish case Conclusion studies and newsletters and hold standards-related As US healthcare expenditures continue to grow, events. In addition, pending regulations, including reaching an estimated $6 trillion by 2020,3 the need the Federal Drug Administration’s Unique Device for an efficient and safe healthcare supply chain to Identification1 (UDI) and various state electronic help bend the growing healthcare cost curve is now pedigree requirements, will undoubtedly affect the greater than ever. To turn standards into a healthcare way data is managed in the supply chain and should reality, now is the time for all healthcare stakeholders be monitored. to follow the steps of leading organizations and begin preparing their supply chains for standards adoption. 3
  6. 6. Booz Allen Can Help You ReferencesBe Ready for What’s Next 1. US Food and Drug Administration,Booz Allen is a trusted partner of clients in the http://www.fda.gov/MedicalDevices/healthcare industry and is dedicated to tackling their DeviceRegulationandGuidance/toughest challenges and delivering results that endure. UniqueDeviceIdentification.We deliver broad expertise in the full spectrum of 2. Gartner, GS1 Standards Gain Traction Towardhealth, supply chain, business, and technology to Improving Healthcare and Life Science Supplyhelp clients take on the complex challenges of the Chains; June 29, 2011.21st century. Booz Allen has a team of experts witha proven record of success in all aspects of 3. Centers for Medicare & Medicaid Services,healthcare consulting: https://www.cms.gov/NationalHealthExpendData/ downloads/proj2010.pdf.• Health Analysts—providing subject matter experts and years of experience in health operations, systems, and architecture• Supply Chain Professionals—offering experienced professionals in health sourcing, contracting, operations, and supply chain technologies• Standards Experts—providing broad perspective and expertise on the life cycle of standards and their integration across organizations, processes, and systems 4
  7. 7. About the AuthorsMike Zirkle is a Principal at Booz Allen Hamilton Seth Rogier is an Associate in at Allen and aand a member of the firm’s Analytics professional member of the firm’s Analytics professional staff.staff. Focused on the civil market, Mr. Zirkle has He has nearly 10 years of experience in supplynearly 20 years of experience with supply chain chain and operations and maintains a focus in theand operational improvement in both the public and health market.private sectors.Ryan Gallagher is a Senior Associate at Booz Allenand a member of the firm’s Analytics professionalstaff. He has more than 15 years of managementconsulting experience. Mr. Gallagher leads BoozAllen’s Strategic Sourcing and Supply Chain Strategyofferings and is focused on the health market.Contact Information:Michael Zirkle Ryan Gallagher Seth RogierPrincipal Senior Associate Associatezirkle_michael@bah.com gallagher_ryan_b@bah.com rogier_seth@bah.com703-377-0029 202-346-9020 217-493-3635 5
  8. 8. About Booz AllenBooz Allen Hamilton has been at the forefront of deliver enduring results. By combining a consultant’sstrategy and technology consulting for nearly a century. problem-solving orientation with deep technical knowl-Today, Booz Allen is a leading provider of management edge and strong execution, Booz Allen helps clientsand technology consulting services to the US govern- achieve success in their most critical missions—asment in defense, intelligence, and civil markets, and evidenced by the firm’s many client relationships thatto major corporations, institutions, and not-for-profit span decades. Booz Allen helps shape thinking andorganizations. In the commercial sector, the firm prepare for future developments in areas of nationalfocuses on leveraging its existing expertise for clients importance, including cybersecurity, homeland security,in the financial services, healthcare, and energy mar- healthcare, and information technology.kets, and to international clients in the Middle East. Booz Allen is headquartered in McLean, Virginia,Booz Allen offers clients deep functional knowledge employs more than 25,000 people, and had revenuespanning strategy and organization, engineering and of $5.59 billion for the 12 months ended March 31,operations, technology, and analytics—which it com- 2011. Fortune has named Booz Allen one of its “100bines with specialized expertise in clients’ mission and Best Companies to Work For” for seven consecutivedomain areas to help solve their toughest problems. years. Working Mother has ranked the firm among itsThe firm’s management consulting heritage is the “100 Best Companies for Working Mothers” annuallybasis for its unique collaborative culture and operating since 1999. More information is available atmodel, enabling Booz Allen to anticipate needs and www.boozallen.com. (NYSE: BAH)opportunities, rapidly deploy talent and resources, andTo learn more about the firm and to download digital versions of this article and other Booz Allen Hamiltonpublications, visit www.boozallen.com. 6
  9. 9. Principal Offices Huntsville, Alabama Indianapolis, Indiana Philadelphia, Pennsylvania Sierra Vista, Arizona Leavenworth, Kansas Charleston, South Carolina Los Angeles, California Aberdeen, Maryland Houston, Texas San Diego, California Annapolis Junction, Maryland San Antonio, Texas San Francisco, California Hanover, Maryland Abu Dhabi, United Arab Emirates Colorado Springs, Colorado Lexington Park, Maryland Alexandria, Virginia Denver, Colorado Linthicum, Maryland Arlington, Virginia District of Columbia Rockville, Maryland Chantilly, Virginia Orlando, Florida Troy, Michigan Charlottesville, Virginia Pensacola, Florida Kansas City, Missouri Falls Church, Virginia Sarasota, Florida Omaha, Nebraska Herndon, Virginia Tampa, Florida Red Bank, New Jersey McLean, Virginia Atlanta, Georgia New York, New York Norfolk, Virginia Honolulu, Hawaii Rome, New York Stafford, Virginia O’Fallon, Illinois Dayton, Ohio Seattle, Washington The most complete, recent list of offices and their addresses and telephone numbers can be found on www.boozallen.com.www.boozallen.com ©2012 Booz Allen Hamilton Inc. 12.129.11

×