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Coastal Cooperative of New Jersey


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Coastal Cooperative of New Jersey

  1. 1. Custom Surgical Packs <br />Frederick J.Tavani, Jr. – Director<br />
  2. 2. The Cooperative<br /><ul><li>Strategic contracting cooperative owned by Meridian Health and Raritan Bay Medical Center
  3. 3. 6 hospitals: 1 University Medical Center, 5 community hospitals (2,424 Lic. Beds)
  4. 4. $80M in Annual Supply Chain Contract Volume</li></li></ul><li>The Pain PointsContracting and Analytics<br /><ul><li>Standardizing data from disparate information systems
  5. 5. Normalizing and cross-referencing components across dozens of manufacturers
  6. 6. Lack of one standard spend analytics tool
  7. 7. Limited analytical staff resources
  8. 8. Limited dollars to engage additional analytical resources</li></li></ul><li>The Pain PointsClinical<br /><ul><li>Limited clinical resources for lengthy product trials
  9. 9. Frustration created by lengthy product trials
  10. 10. Conversion from incumbents is labor intensive</li></li></ul><li>Problem: How To Cost Effectively Oversee A Complex Bid?<br /><ul><li>3 different incumbent suppliers: Cardinal, DeRoyal and Avid Medical
  11. 11. 6 Hospitals
  12. 12. 141 Custom Packs
  13. 13. 4,500+ Components
  14. 14. Annual Spend: $3.7 million</li></li></ul><li>The Solution<br />Question: How do consolidate to 1 supplier to aggregate spend? <br />Answer: Clinical Involvement!<br />Question: How do we achieve a Level Playing Field with suppliers?<br />Answer: MedPricer! <br />Question: How do we achieve Transparency in pricing?<br />Answer: MedPricer!<br />Question: How do we reduce the bid analysis turn-around time? <br />Answer: MedPricer!<br />
  15. 15. <br />E-Sourcing Designed for Healthcare<br /><ul><li>Conduct sealed-bid electronic RFP’s (eRFP’s)
  16. 16. Suppliers compete in real-time for contract awards
  17. 17. Streamline the Bid-to-Contract process
  18. 18. Create instant analysis of supplier pricing proposals
  19. 19. Generate additional savings through intense supplier competition</li></li></ul><li><ul><li>Shortened the negotiation cycle: 2 hours and 5 minutes vs. 3 to 6 weeks in the typical RFP process
  20. 20. 18 bids in two hours from three suppliers
  21. 21. No paper! </li></ul>Time Savers<br />
  22. 22. Cost Savings<br /><ul><li>Leveraged committed volume for deeper discounts from supplier (13.6% savings)
  23. 23. Dollar savings of over $2.54M over entire life of the contract.
  24. 24. Supplier competition that drove better value adds</li></li></ul><li>The Results<br /><ul><li>Service levels in the operating rooms by the supplier preceded the final contract signatures.
  25. 25. First years expected savings will be exceeded by more than 10%.
  26. 26. Conversion incentives were earned 6 months earlier than expected.
  27. 27. Dollar savings of over $2.54M over entire life of the contract.
  28. 28. Pricing savings were in place less than 10 days after the signing of the contract with the awarded supplier.</li></li></ul><li>Other e-Sourcing Projects <br />Completed<br /><ul><li> Wound Care Products
  29. 29. Skincare Products
  30. 30. Ostomy Products
  31. 31. Wound Closure Products
  32. 32. Office Supplies
  33. 33. Specialty Beds
  34. 34. Forms Management </li></ul>27% Savings vs. Benchmark<br />