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Upper Midwest Consolidated Services Center

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  • 1. Getting to Know the UMCSC December 1, 2011 Confidential Information – Do Not Distribute
  • 2. UMCSC Founding VisionThe Upper Midwest Consolidated Services Center is a local, member-driven supply network of VHA Upper Midwest member organizations. The members of the UMCSC will initially focus on committing to centralized sourcing and contracting, with future plans to explore other potential supply chain management initiatives and shared business solutions.UMCSC reflects vision that healthcare providers and suppliers must work closely together in order to deliver increased clinical effectiveness and economic efficiency
  • 3. • Custom Packs • Distribution Models • Committed Purchase Services • Central ProcurementUMCSC Confidential Information – Do NOT Distribute to Third PartiesMember-driven 3VHA-supportedab
  • 4. Differentiating the UMCSC from other Regional Supply Networks• Separate legal entity - LLC is governed and financed by participating members• The UMCSC is not a GPO - However, it will enhance existing VHA/Novation agreements based on the members’ ability to commit to volume, market share and compliance• Direct Member involvement - Mayo Clinic and member supply chain executives will be leading the UMCSC sourcing and contracting initiatives - Strong history of working with strategic suppliers
  • 5. 1. Altru Health System Grand Forks ND2. Bay Area Medical Center Marinette, WI WI3. Beaver Dam Community Hospitals, Inc. Beaver Dam WI4. Bellin Memorial Hospital Inc Green Bay WI5. Beloit Health System Beloit WI6. CentraCare Health System St Cloud MN7. Elmhurst Memorial Healthcare Elmhurst IL8. Essentia Health Duluth MN9. Froedtert & Community Health, Inc Milwaukee WI10. Grand Itasca Clinic and Hospital Grand Rapids MN11. Gundersen Lutheran, Inc. La Crosse WI12. Jamestown Hospital Jamestown ND13. Lake Region Healthcare Fergus Falls MN14. LifeCare Medical Center Roseau MN15. Mayo Clinic Rochester MN16. Little Company of Mary Hospital and Healthcare Center Evergreen Park IL17. Medcenter One Health Systems Bismarck ND18. Meriter Health Services Madison WI19. North Memorial Health Care Robbinsdale MN20. Prairie Lakes Healthcare System Watertown SD21. ProHealth Care, Inc. Waukesha WI22. Rice Memorial Hospital Willmar MN23. Ridgeview Medical Center Waconia MN24. Sanford Sioux Falls SD25. Silver Cross Hospital Corp. Joliet IL26. Sherman Health Systems Elgin IL27. St. Lukes Hospital of Duluth Duluth MN28. Swedish Covenant Hospital Chicago IL29. SwedishAmerican Health System Rockford IL30. ThedaCare, Inc. Appleton WI31. Trinity Health Minot ND 34. Jefferson Regional Medical Center Jefferson Hills PA32. UW Health Partners Watertown Watertown WI 35. St. Clair Hospital Pittsburgh PA Regional Medical 36. Kingman Regional Medical Kingman AZ33. Wisconsin Valley Health Network Wausau WI 37. Excela Health Greensburg PA
  • 6. UMCSC Membership Demographics Alliance Wide Totals as of October 2011• Number of members 37• Number of hospitals 133• Number of outpatient surgery centers 35• Number of licensed patient beds 14,352• Number of outpatient radiology centers 88• Annual supply spend (including drugs) $4.2 Billion• Annual surgeries performed (inpatient/outpatient) 527,000+• Number of OR suites (total of inpatient/outpatient) 752• Number of employees 150,000+• Number of states with member hospitals/clinics 18
  • 7. UMCSC Progress to Date• Formed July 1, 2008• Approved Contracts to Date: 202 supplier agreements• Categories: Category # of Agreements Commodities 29 Clinical Preference 79 Physician Preference 84 Additional Products 10• Savings to Date: > $ 75 Million• UMCSC operational expenses below forecast
  • 8. UMCSC Structure – 3 Classes of Membership• Class A -Stockholder -Available to organizations whose 2007 supply spend > $75M - Representation on all 4 governing bodies of the UMCSC• Class B -Stockholder -Pay a fee equal to 1% of spend through the UMCSC as a contribution toward annual operating expenses - Representative at 4:1 ratio of Class B members on boards and committees (member of a cohort)• Class C -Non Stockholder-Access portfolio of contracts -Pay a fee equal to 2% of spend through the UMCSC -No representation on governing bodies
  • 9. UMCSC Spend RequirementsEach member has committed to annually purchase from the UMCSC portfolio in the following manner: Category A B C Member Member Member Commodity Items 90% 85% 75% Clinical Preference 80% 75% 65% Physician 25% 20% 15% Preference