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Supplier Nutrition and Food Services Contract Approach
- 1. HealthPRO’s Contract Approach: Nutrition & Food Services
- 2. Aggregate volumes to achieve greatest value for our members Invested in Canada’s healthcare system Who We Are Canada’s healthcare procurement services organization, advancing the purchasing interests of healthcare facilities from coast to coast 2
- 3. Our Reach More than 250 members representing over 800 hospitals across seven provinces and the territories Greatest purchasing power ever assembled within Canada’s public healthcare system 3
- 4. Nutrition and Food Services Contract Approach 4
- 5. Complexity of Product? Changing Specification? Potential for Innovation? 1. Plan and Develop a Strategy Service Required? 5
- 6. 6
- 7. • Strategy input • Help develop quality specifications related to nutrition, sensory, packaging and production • On-site evaluation of products and services • Help facilitate contract implementation 7
- 8. Meets the unique needs of members Delivers the best overall value 1. Plan and Develop a Strategy 8
- 9. Contracting documents are always posted for prequalification. Samples may be requested but pricing is not submitted at this stage. 2. Prequalify Products 9
- 10. • Products are scored by nutrition and food service operators against predetermined quality specifications • Scoring is individual • Weighting based on nature of contract • Suppliers who prequalify invited to participate in the Request for Proposal (RFP) 10
- 11. Allows our members to commit to contracts in advance, as they are informed of prequalified brands and are ensured that the products have met our members’ specifications. 11
- 12. Commitment in advance to the contract with supplier selection post-award Commitment within the first six months post award Product Launch 3. Members Commit to the Contract 12
- 13. Prequalified suppliers are invited to provide their proposals, which are scored to assess price, quality of service and other considerations. 4. Request for Proposal and Award 13
- 14. 14 4. Request for Proposal and Award Within HealthPRO’s regular contract cycle; issued upon contract expiry Contracts are separated into distinct categories which are traditionally renewed every five years Major RFPs All contract opportunities posted on biddingo.com/healthpro Contract schedule available at http://portal.healthprocanada.com/web/healthpro- public/supplier-resources
- 15. The NFSVAC, comprised of Directors of Nutrition and Food Service and Supply Chain practitioners, meets twice per year to make recommendations for contract award. 15
- 16. 5. Award and Ongoing Support 16 • Notify awarded suppliers • Publish informative bi-annual supplier newsletters • Offer suppliers support throughout the life of the contract
- 17. Our local teams collaborate with our national team to support our members and suppliers. Krista Stagliano Vice President, Materials Management Cathy Payne Director, Nutrition and Food Services Maleeka Singh Coordinator, Nutrition and Food Services Elizebeth Abdul Manager, Nutrition and Food Services 5. Award and Ongoing Support 17
- 18. Facilitate supplier meetings Develop implementation plans in collaboration with members 5. Award and Ongoing Support HealthPRO remains involved every step of the way. We: 18
- 19. 19 Benefits of working with HealthPRO National reach, ensuring access to the largest possible customer base Compliance with regulatory procurement guidelines – ensures consistency in the process High levels of contract commitment and compliance Market intelligence: Insight into hospital practice Insight into government policy, trends
Editor's Notes
- Introductions. Greet the group and thank them for their time.
- HealthPRO follows a rigorous five step approach for our nutrition and food service contracts. HealthPRO’ s quality and business teams involve our members throughout the entire process to ensure we produce contracts that maximize value for all members.
- Approximately 18 – 24 months in advance, HealthPRO begins developing the contract strategy with our member committees comprised of food service professionals and business professionals. Many factors are taken into account when determining what the final contract will look like including: - the complexity of the product or service; - the level of clinical sensitivity; - and how difficult it would be to transition to the product in the hospital. Commodity products are likely to be awarded to a single supplier, while more complex products — or those associated with costly capital equipment — are likely to be awarded to multiple suppliers, giving each member the ability to choose the one that best meets their specific needs. Contracts for innovative or rapidly evolving products tend to be awarded for shorter periods of time or have technology clauses detailed, while contracts for commodity products tend to be awarded for longer periods of time and be more straightforward.
- Irrespective of the strategy we end up with, our approach always complies with the Agreement on Internal Trade and all applicable provincial and regional regulations governing our membership.
- Based on the nature of the product, HealthPRO identifies and engages a variety of healthcare professionals to participate in the process. Our Nutrition and Food Service Quality Advisory Committee, or NFSQAC, is made up of approximately 30 Food Service Managers from member hospitals across the country. This standing committee is integral in guiding our contract strategy, assisting in the development of quality specifications and evaluating products involving their staff and their production methods. The committee meets once per year in person and several more times per year via conference call and webinar. The committee represents a broad spectrum of professional practice areas and, collectively is qualified to provide guidance and advice for most of our contracts. (Tip: As part of this slide, the presenter should highlight how many seats the member has on the NFSQAC and have their names on hand.)
- Throughout the strategy planning process, HealthPRO works diligently to ensure the resulting contracts meet the requirements of members while delivering exceptional overall value. We continuously strive to find the right balance between quality products or services at the best possible price.
- Once the various committees have provided their input, HealthPRO conducts a prequalification process. Most often, this begins with a Request for Qualification that is publically posted on national tendering sites including Biddingo.com to ensure all suppliers have an opportunity to respond. Sometimes, depending on the product and the chosen strategy, we prequalify by imbedding the clinical criteria in a publically posted Request for Proposal, but specify that a clinical prequalification phase will occur before the pricing proposal is considered. Regardless of the method of posting, suppliers are required to respond with a list of their products that meet the specifications. We also normally request samples for evaluation at this stage, but never do we request pricing, as we believe that quality prequalification should not be influenced by the price of the product.
- Once the RFQ responses are received, the NFSQC or subcommittee evaluates the products and scores each submission. Product evaluation (including sensory, packaging and production) take place on the top 80% of products purchased. Only products that are prequalified move on in our process and the score that is given at this stage carries forward to become part of the final award decision.
- Before we move onto the next step of our process, it’s important to note that prequalifying products prior to analyzing price is something that differentiates the HealthPRO process from many others. While you may not know at this stage which products will be awarded, you can be assured that it will be one of the products that have already been evaluated, scored and deemed to be prequalified by a the NFSQAC committee. This is a big help to members in deciding whether they wish to commit to a given contract.
- In our fourth step we shift the focus from Quality specifications and put more emphasis on the business component. Up until this point, we have reviewed several types of contract strategies and models, commitment methodologies, and evaluation processes, all undertaken in close collaboration with our members. At the Request for Proposal stage, HealthPRO Business teams collate all of the information and invite prequalified suppliers to submit a proposal that addresses price, service, breadth, inservicing and training, implementation support and many other components. Once submitted, the proposals are evaluated and scored by HealthPRO as well as our Nutrition & Food Service Value Advisory Committee- NFSVAC), a group of Food and Nutrition Managers and Purchasing management professionals from our various member hospitals across the country. If you recall a few minutes ago I spoke about the clinical score. It is at this stage that the score from the clinical evaluations is married with the score from the RFP and in a single supplier award, the supplier with the highest combined score is awarded the contract. In a multi supplier award, each prequalified supplier who submits a (???)
- To provide you with some background, our NFSVAC is made up of approximately 30 professionals from member hospitals across the country. For the most part, they are Directors of Nutrition and Food Service and/or Supply Chain practitioners who, similarly to the NFSQAC, meet once per year to evaluate proposals under consideration and recommend contract awards. (Tip: As part of this slide, the presenter should highlight how many seats the member has on the MMAC and have their names on hand.)
- Your dedicated Member Support representative (tip: ensure you identify the Member Support person) works closely with both your team and the HealthPRO clinical and business teams to ensure you are provided with the customized assistance you need throughout the entire contract cycle. For example, when the contract is awarded, we work together to develop customized implementation plans that can be supported by the hospitals, as well as help resolve any challenges that may arise. We also provide cross-reference reports to assist with product conversion. Once the contract has been implemented, the member support team will continue to work with each member, as well as suppliers when required to ensure ongoing compliance to the contract. Compliance support ensures that each member is using the correct products and is receiving maximum benefit from the contract award. In the event you encounter any product issues with the contract, we act as a liaison with the supplier. We also provide various support tools including weekly contract updates detailing any product additions, shortages or discontinuations. In short, we are there for you every step of the way.