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James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices
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James Leader - Healthscope - Health Technologies Procurement : Managing Hospital Medical Devices

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James Leader delivered the presentation at the 2014 National Hospital Procurement Conference. …

James Leader delivered the presentation at the 2014 National Hospital Procurement Conference.

The 2014 National Hospital Procurement Conference explored a number of cost-saving measures in the hospital procurement ecosystem. Highlights included sessions on improving efficiency, savings and patient safety within Australian Hospitals.

For more information about the event, please visit: http://bit.ly/hosprocurement14

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  • 1. MANAGING HOSPITAL MEDICAL DEVICES Medical device procurement – keeping up with the changes FRIDAY, 25 JULY 2014 James Leader National Procurement Manager – Medical Capital
  • 2. HEALTH TECHNOLOGIES PROCUREMENT: MANAGING HOSPITAL MEDICAL DEVICES • Device Procurement: keeping up with changes • Where is the clarity and transparency of the future procurement process? • How does Australia compare to the rest of the globe?
  • 3. INTRODUCTION AND CONTEXT • Healthscope has 44 Hospitals, as well as 160+ Medical Centres and 550+ Pathology sites • Healthscope Procurement centralises activities to support the business • In answering the topic I will be talking to: • Medical devices • Private healthcare provider, corporate perspective
  • 4. THE PACE OF TECHNOLOGY CHANGES • So how fast is technology actually moving? • Consider smartphone technology ….Pretty quick
  • 5. THE PACE THAT HOSPITALS MAINTAIN • Healthcare industry is not so fast. Why? • Heavily regulated • Expensive product development pathway. • Medical Technology is fast, but could be faster • We are slow, and could be faster.
  • 6. Trials R+D Certification 5 years Sales Marketing 1+ years 10 years Repairs Maint. Purchase Sales and MarketingConcept to Commercialisation Ownership MEDICAL DEVICE PRODUCT TO MARKET
  • 7. MEDICAL DEVICE PRODUCT TO MARKET • Healthcare industry is not so fast. Why? • Heavily regulated • Paperwork intense, bureaucratic • Reduced demand • Extended purchasing cycle • Necessary to maintain and support
  • 8. Trials R+D Certification 3 – 5 years Sales Marketing 1+ years 5 – 10 years Repairs Maint. Purchase Sales and MarketingConcept to Commercialisation Ownership MANUFACTURER INTERNAL IMPROVEMENTS
  • 9. MANUFACTURER INTERNAL IMPROVEMENTS • Increased proficiency in meeting regulatory requirements • Feed sales feedback into product revisions • Simplify product upgrade pathway • Moved away from siloed divisions and benefit from company cohesion
  • 10. Trials R+D Certification >4 years Sales Marketing >1 years 5 years Repairs Maint. Purchase Sales and MarketingConcept to Commercialisation Ownership HOSPITAL INTERNAL IMPROVEMENTS
  • 11. HOSPITAL INTERNAL IMPROVEMENTS • Share information about device replacement schedules with suppliers • Consider different procurement models • Buy, rent, time-volume agreement, placed capital • Time-frame of agreement relative to product lifecycle • Share risk • Ultimately, reduce obstacles to market
  • 12. TYPICAL CAPITAL PROCUREMENT APPROACH An example: • Buy an Anaesthetic machine • $50k capital outlay, 8 year life • Service and maintenance costs, consumable costs Why not tinker with the model to allow: • Fixed cost agreement to use the Anaesthetic machine, upgrade at year 5 • Machine is maintained for the period.
  • 13. • Being agile in procurement allows us to accommodate the rapidly changing nature of innovation in healthcare. • Rethinking how innovative technology can be accessed will improve the bottom line for the healthcare provider and the vendor • Innovation saves lives. AGILITY TO DELIVER INNOVATION
  • 14. Choluteca Bridge, Honduras
  • 15. New bridge, post hurricane Mitch
  • 16. • We need to have a solid bridge that spans the river but we also need to predict where the river will shift to and ensure we are building towards spanning that too. • Agility in procurement equates to agility in the industry. • In Australia we are on the cusp of AGILITY TO DELIVER INNOVATION

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