Knowledge Center

Purchasing in healthcare is largely based on a hierarchical management style. In an experimental case started in 2004, at Floyd Medical Center in Rome, Georgia, this standard was altered. The introduction of a team concept combined with lean manufacturing practices to this traditional purchasing setting was unique. The results of this radical change over the past eight years have been exceptional. The paper describes the steps taken to change the culture, the actions taken to implement lean tools, and the wins achieved by the team.

Jim Smoker, CMRP, MPA, CS, York, Pennsylvania

Incorporating the targets for transformation set by the leader of our organization including unjustified variation, fragmentation of care-giving, perverse payment incentives, and the patient as a passive receipt of care, Supply Chain has developed a strategic model and plan that transforms our thinking from a focus on “chains” to a focus on “flow” and from “Supply Chain Services” to “Care Support Services.”

This is an on-going operational excellence initiative and our results have certainly validated our approach and produced an immediate beneficial impact. The methodology we have implemented truly drives improvements and bottom-line results. We are very proud that the Executive Leadership at our organization has promoted the use of Purchasing’s approach in assessing and managing other areas of the organization.

This paper examines the journey that an organization travels to arrive at an outsource decision and the challenges that it should be alert to post contract. The Literature Review section provides a context for the recommendations offered in the case study illustration. The recommendations deliberately focus on providing proper governance and oversight during the operational phase after the contract has been awarded and is up and running.

Overview Scottsdale Healthcare is a community-based, not-for-profit health system which includes Scottsdale Healthcare Thompson Peak Hospital, Scottsdale Healthcare Shea Medical Center and Scottsdale Healthcare Osborn Medical Center, the Virginia G. Piper Cancer Center at Scottsdale Healthcare, Scottsdale Healthcare Primary Care centers, Scottsdale Healthcare Research Institute and outpatient services. A leader in medical innovation, talent, and technology, Scottsdale Healthcare was founded in 1962 and is based in Scottsdale, Arizona.

Overview University of Virginia (UVA) Health System, based in Charlottesville, Va., includes a 604-bed hospital, level I trauma center, nationally recognized cancer and heart centers, and primary and specialty clinics throughout Central Virginia.

Overview Vanderbilt University Medical Center (VUMC), based in Nashville, is a comprehensive healthcare facility dedicated to patient care, research, and biomedical education. Its reputation for excellence in each of these areas has made VUMC a major patient referral center for the Mid-South. Each year, people throughout Tennessee and the Southeast choose VUMC for their healthcare needs, not only because of its excellence in medical science, but also because the faculty and staff are dedicated to treating patients with dignity and compassion.

Overview Wellmont Health System is a leading healthcare provider in the Tri-Cities region of Northeast Tennessee and Southwest Virginia. Formed in 1996 with the merger of Holston Valley Medical Center in Kingsport, Tenn., and Bristol Regional Medical Center in Bristol, Tenn., Wellmont is a not-for-profit, integrated health system guided by the mission to deliver superior healthcare with compassion and a vision to deliver the best healthcare anywhere.

Overview Ranked among the top 10 Catholic health systems in the United States by size, the CHRISTUS Health system includes more than 40 hospitals and facilities in seven U.S. states and six states in Mexico, with assets of more than $4.6 billion.

Overview With its commitment to delivering better outcomes more efficiently, Cook Medical formed a Supply Chain Improvement Team (SCIT) in late 2013, which is comprised of individuals who are dedicated solely to working with customers around the globe to develop and implement tools to improve purchasing, delivery, and inventory management activities.

Overview

Overview Providence Health & Services is the third largest not-for-profit health system in the United States serving patients across Alaska, California, Montana, Oregon, and Washington. The organization operates 34 hospitals, 475 physician clinics, 22 long-term care facilities, 19 hospice, and home health programs, and 693 supportive housing units in 14 locations. Providence’s health plan serves its caregivers and other large employer groups covering 390,000 members.

Overview

In 2015, AHRMM convened the AHRMM Thought Leader Task Force, an exploratory group tasked with uncovering applications of the Cost, Quality, and Outcomes (CQO) Movement across the healthcare field. The Task Force objectives were developed based on recommendations from the first ever Thought Leader Summit on CQO held at the 2014 AHRMM Conference and Exhibition.

The white paper written as a result of the AHRMM Executive Thought Leader Summit held during the AHRMM14 Annual Conference & Exhibition in Orlando, Florida.  

The paper presents healthcare supply chain tools and strategies for navigating the Cost, Quality, and Outcomes (CQO) Movement, and explores new initiatives designed to advance the supply chain from a transactional program to a strategic contributor to organizational success.

CHICAGO (December 19, 2013) – The Association for Healthcare Resource & Materials Management (AHRMM) of the American Hospital Association posted a guidance document today for healthcare supply chain executives looking for a more holistic approach to measuring their organization’s performance. AHRMM launched its Cost, Quality, Outcomes (CQO) Movement in January 2013, to address the major impacts of healthcare reform – including implications for supply chain and recommendations for adapting to a new healthcare delivery model.

This paper addresses the importance of the supply chain on overall health care costs and how transparent data can lead to a best practice supply chain. Identifying necessary data as well as the location of that data to understand a complete cost structure is a challenge for supply chain leaders. Fragmented systems in healthcare lead to a weak and inefficient supply chain. This data fragmentation in healthcare causes frustration and failure in optimizing the supply chain.

A review of inventory distribution methods utilized throughout health care including advantages, disadvantages, and considerations of best practice to assist with the selection of the correct method to be used in managing variable need supplies for a busy remote GI Lab. Download Article