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St. Anthony's


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St. Anthony's

  1. 1. Change of Heart: A Physician Driven Approach to Driving Down Supply Cost Presented by St. Anthony’s Medical Center SUPPLY CHAIN MANAGEMENT
  2. 2. Change of Heart <ul><li>46 Million Uninsured; Wide Variation in Quality and Cost; 17% of GNP Rising to 20%; Supply Variations; New Technology; Increasing Implant Costs; Reduced Government and Insurance Payment; Departmental Budget Imbalance; Vendor and Physician Relationships Under Tightened Scrutiny. </li></ul><ul><li>Key Areas of Focus </li></ul><ul><li>Cardiac Rhythm Management </li></ul><ul><li>Drug-Eluting Stents </li></ul><ul><li>Non Drug-Eluting Stents </li></ul><ul><li>Diagnostic & Interventional Cardiology Accessories </li></ul><ul><li>Diagnostic and Interventional Radiology Accessories </li></ul><ul><li>Electrophysiology </li></ul><ul><li>Peripheral & Biliary Stents </li></ul><ul><li>Physicians, Caregiver Leadership, Senior Leadership, Vendors, Supply Chain </li></ul><ul><li>Clinically Integrated, Data Driven, Process Orientated, Collaboratively Managed Contracting Initiative </li></ul>Why: What: Who: How:
  3. 3. Change of Heart Goals <ul><li>Tighten clinical and financial alignment between providers and facility </li></ul><ul><li>Achieve benchmark best decile pricing </li></ul><ul><li>Sole source supplies in Top 3 product categories </li></ul><ul><li>Promote excellent service standards </li></ul><ul><li>Support highest quality patient outcomes </li></ul><ul><li>Reduce vendors and supply lines </li></ul>
  4. 4. Change of Heart Initiative Physician Commitment/ Planning Multidisciplinary Team Support Manufacture Participation and Vendor Control Contract Product Transition Sustainability Key Success Factors
  5. 5. Change of Heart Challenges <ul><li>Rising cost per case </li></ul><ul><li>Fragmented product usage </li></ul><ul><li>Contract compliance </li></ul><ul><li>Lack of relationship between physicians and Supply Chain </li></ul><ul><li>Lack of physician direction </li></ul><ul><li>Vendor free-for-all </li></ul><ul><li>Vendor-Physician relationships </li></ul>
  6. 6. Change of Heart Steps or Processes Implemented <ul><li>Physicians commitment and planning </li></ul><ul><li>Multidisciplinary team support including data analytics </li></ul><ul><li>Vendor participation and controls </li></ul><ul><li>Contracting process and product transition </li></ul><ul><li>Physician Supply Chain education </li></ul>
  7. 7. Change of Heart Key Targets <ul><li>Physician engagement </li></ul><ul><li>Product standardization both inter and intra departmentally </li></ul><ul><li>Reduce supplier replication/duplication </li></ul><ul><li>Inventory management </li></ul><ul><li>Improve process efficiency </li></ul><ul><li>Establish strategy to leverage and control new technology </li></ul>
  8. 8. Change of Heart Success Story <ul><li>PHYSICIAN DRIVEN!!!! </li></ul><ul><li>Committee developed, chaired, and driven by the Medical Director of Heart Specialty Center </li></ul><ul><li>Committee 70% physician based </li></ul><ul><li>Physicians involved from Cardiology, Interventional Radiology, Electrophysiology, and Peripheral Vascular </li></ul><ul><li>Supply Chain and key clinicians/non-clinicians from all clinical areas involved </li></ul>
  9. 9. Change of Heart Success Story <ul><li>Sole source award for all major product categories </li></ul><ul><li>First year cost savings projected to exceed $2M </li></ul><ul><li>Physicians more educated and interested in facility purchasing strategies </li></ul><ul><li>Physicians actively working with Supply Chain to measure, compare, and reduce cost per case </li></ul><ul><li>Physicians working directly with contracted vendors vs. non-contracted vendors </li></ul>
  10. 10. Change of Heart Success Story <ul><li>Top decile pricing </li></ul><ul><li>Standardized diagnostic products across Cath Lab, IR, EP, and Peripheral Vascular </li></ul><ul><li>Significantly reduced the number of vendors, SKUs, and amount of inventory on-hand </li></ul><ul><li>Developing six sigma process improvement initiative across all product lines </li></ul><ul><li>Implementing RFID Inventory Management System across continuum </li></ul>
  11. 11. Questions?