2019 Affiliate Seat Candidate

Tim BuggTim Bugg, CMRP
President & CEO
Capstone Health Alliance
Fletcher, NC

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Describe why you are a good candidate for this leadership role.

Throughout my career I have been fortunate enough to progress through a variety of leadership and senior leadership roles. I have also had the opportunity to serve on a variety of supply chain related boards and committees which gives me the unique experience of both hands on and executive oversight of the industry. Specifically, I began my career in 1995 as a Director of Materiels Management (note spelling) in a mid size rehab hospital. That quickly progressed into the Director of Supply Chain for a large non-acute IDN with several post-acute providers and a very diverse supply chain operation.

In 2000 while serving as the interim Executive Director of the WNC Health Network (WNCHN), I, along with a colleague planned and executed a group purchasing program for our 16 hospitals. From 2000 to 2006 I served in a dual capacity as both a supply chain leader and a vice president in a growing regional purchasing collaborative. In 2007, I moved full time to the VP of Member Services for WNCHN and was promoted to Senior VP in 2012. During which time with my CEO at the time, planned and executed our new company, Capstone Health Alliance.

In October 2013, I was named the first CEO of Capstone. Today, Capstone, based on Definitive Health Care data, is the third largest alliance in the country. From 2002 – 2010, I served on the NCAHRMM board, and President in 2005 and 2006. During my tenure, NCAHRMM received its first designation as a bronze affiliate. The board and I completely overhauled the NCAHRMM strategic plan, with an emphasis on strong accessible education and membership growth. I’m proud to say we accomplished both. I have led several consulting engagements in supply chain, specifically in post-acute care.

My consulting focus was to bring a more robust approach to supply chain in the post-acute market. I tell the story of me to demonstrate my abilities to lead with proven results. I believe I have a keen since of market and a decisive manner which to accomplish results through strategic visioning and planning. I am a consistent advocate for education specifically in supply chain, and as a result implemented the Capstone Learning Academy for our members. Other board experience includes: member in good standing on the Council of Supply Chain Executives; member IDN Summit Advisory Council; member, Premier Strategic Council for Alternate Care; member, President’s Advisory Council for Montreat College, and a current board member of the Health Care Supply Chain Association.

Describe where you see health care evolving, and what you see supply chain’s role being in those future models.

I may be a bit different than most candidates in that I hold many stakeholders accountable for the condition of health care today. Health care is a systemic cost problem for our country and believe as a nation health care cannot represent 20% of our GDP. Supply chain obviously plays a huge role in reducing the cost, but so do suppliers, providers, insurers, and patients. Health care may very well evolve to single payer system, and if so, it will be crucial for supply chain leaders to change the game in cost reduction. Our environment has become so polarized that change in health care policy could very well change based on the party in power. This would then result in our providers having to shift quickly to remain profitable in whatever payor scenario occurs. To be clear, traditional contract negation for percentage savings will always be a part of what we do, but utilization, best practice, and outcome-based product decisions will have to be in our toolbox. In looking at cost, quality, and outcomes, we must find ways to reduce variation of care, and particularly in the physician preference space.

The supply chain leader of the future will need a robust source of data to be able to make fact based, intelligent decisions on behalf of the provider. Leaders will need to form partnerships with suppliers and work toward common goals, and risk or value-based contracts. Suppliers, of course, need to evolve to meet the challenges, but I put that ownership on us as leaders to find a common path forward. Best practice and education will need to be consistent and necessary for the leader of the future. As technology continues to progress at seemingly the speed of light, so thus does our leaders knowledge base. 

Lastly, and most importantly, the health care supply chain leader must, must be elevated and recognized in the c-suite. Chief Supply Chain Officers are very prevalent in all other industry, so why not health care? This is a problem which needs a strong never-ending push to educate the health care CEO’s of the need for this position. At that point, supply chain can garner a broader scope of responsibility by overseeing all areas of spend inside the walls of a hospital. This includes services, benefits, etc. Imagine what progress could be made when professional negotiators are allowed to negotiate for all things related to non-salary expense. I look forward to doing my part in preparing our profession for the health care of the future.

How will your leadership and vision strengthen AHRMM?

AHRMM is the advocacy organization for our profession and has done a tremendous job of continuing to keep supply chain in the forefront of health care. My experience, I believe can only enhance the message. Again, I have the unique skill set of being both a supply chain leader and CEO. I would hope my executive experience coupled with my 24 years of health care and supply chain would bring a strong knowledge base to the AHRMM board, and as such take the vision forward in a meaningful way. I have a comprehensive knowledge of both supply chain, and all facets of health care.

I believe that knowledge can offer great insight to the board as it works to take the supply chain to the c-suite. I consistently speak with hospital executives in my current role, and very often discuss the importance of supply chain. Specifically, regarding CQO, as I mentioned earlier, I applauded AHRMM when CQO was announced and became its headline. CQO will take us into the future of health care and is vital in helping our leaders become effective by looking at all facets of cost, quality, and outcome.

This aligns very well with the IHI initiative and with our current health care environment. As stated in the previous question, I outlined what I feel the supply chain leader of the future will need, and in my current role, I am beginning to look at solutions that can help prepare those leaders. I believe I can expand my vision to not just benefit the Capstone membership, but the AHRMM membership as well.

Finally, I don’t want to repeat answers from other questions, but I do want to state that the current AHRMM road map of development, voice, and impact align very well with the strategic priorities of Capstone. It’s our job to reduce health care cost through aggregation, collaboration, and networking and do so in a fiscally sound organization. We strive to develop our members into stewards of best practice and leading-edge practices outside of traditional contracting to attack cost; we are the voice for our membership with the supplier and at times GPO to bring forth results, and we want to impact our members through strong member relations.

Let me end by saying, it’s an honor to be considered, and I would strive to bring the best I can give to take the organization I love forward.

Background

Total number of years as AHRMM Member: 31 years
Years in health care: 24 years
Years worked in the health care supply chain profession: 24 years
Years worked in current position: 5 years
Number of direct reports: 25
Number of employees in your department: N/A
Type of Organization you are employed by: Group Purchasing Organization

Describe your current position and responsibilities:

My current role is President & CEO reporting directly to a board of directors. In this role, I have full organizational, financial, and operational oversight of the company.

Service

List service to local chapter and to AHRMM national, including all committee/task force involvement, and whether you served as a member or as chair, within the past 5 years.

None in past 5 years. Served on NCAHRMM board 2002 – 2010, and as president in 2005-2006. Served on the membership committee of AHRMM in the early 2000’s.

List Annual Conferences, Leadership Training Conferences, and Thought Leader Summits attended, including dates and locations, within the past 5 years:

AHRMM National Conferences:

  • Orlando, 2014
  • Indianapolis, 2015
  • San Diego, 2016
  • Washington, DC, 2017

Premier National Conferences:

  • San Antonio, 2014
  • Washington, DC 2015
  • Washington, DC, 2016
  • Washington, DC, 2017
  • Nashville, 2018.

Additional Events:

  • Council of Supply Executives: Nashville, 2014 - 2018
  • HIDA Streamlining Conference: Chicago, 2017 - 2018
  • SCSHMM Conference: Myrtle Beach, SC, 2014 – 2018
  • NCAHRMM Conference: Wilmington, NC 2014, 2015, 2017
  • VAHRMM Conference: Newport News, VA, 2014
  • IDN Summit: Orlando, 2014 - 2018
  • HealthConnect: Miami, 2017 - 2018
  • GHX Summit: Las Vegas, 2018
  • Federation of American Hospitals: Washington, DC, 2014 - 2018

Service to professional associations or community organizations to which you belong, including all committees, whether you served as a member or as chair, the year(s) of service, any elected offices held and the year(s) held:

Current:

  • Member in good standing on the Council of Supply Chain Executives (8 years)
  • Member IDN Summit Advisory Council (Inaugural year)
  • Member, Premier Strategic Council for Alternate Care (3 years)
  • Member, President’s Advisory Council for Montreat College (Inaugural year)
  • Board member of the Healthcare Supply Chain Association (3 Years)

In the past:

  • Continuum of Care Committee (2002 – 2009) Chair (2004-2006)
  • ASCEND Oversight Committee (2009 – 2011)
  • Nursing Committee (2011-2014) Co-Chair 2013
  • Member Funding Oversight Committee Buncombe County United Way (2013-2015)
  • Member Healthcare Funding Committee Buncombe County United Way (2010-2013)
  • Founder & President, WNC Extreme Fastpitch Organization (2009 – 2015)