FACULTY DISCLOSURE. - Jeromie Atkinson Nothing to Disclose - Mary Beth Lang Nothing to Disclose - Joe Walsh Nothing to Disclose

Transcription

1 FACULTY DISCLOSURE The faculty reported the following financial relationships or relationships to products or devices they or their spouse/life partner have with commercial interests related to the content of this CE activity: - Jeromie Atkinson Nothing to Disclose - Mary Beth Lang Nothing to Disclose - Joe Walsh Nothing to Disclose

2 Elevating the Healthcare Supply Chain: A Healthcare Supply Chain Success Story Presenters: Joe Walsh, EVP, Operations, Pensiamo Jeromie Atkinson, Senior Director, Pharmacy Sourcing, Pensiamo Mary Beth Lang, EVP, Cognitive Analytics and Computing, Pensiamo

3 LEARNING OBJECTIVES Presenters: 1. Discuss the fundamental elements necessary to build a strong foundation for spend management programs. 2. Identify the seven dimensions of category management. 3. Develop strategies to improve spend management practices in your organization.

4 A Healthcare Supply Chain Success Story 2012 Supply Chain Department of the Year

5 AGENDA UPMC Supply Chain Journey Pensiamo Supply Chain Elevation Category Management Cognitive Analytics

6 UPMC S SUPPLY CHAIN JOURNEY Value Limited spend managed by Supply Chain 90% of spend under Supply Chain through GPO All spend follows Supply Chain procurement process 10% of addressable spend through GPO E-Catalogue for end user self service Transformative Data in Context Insightful Visibility Patient Care Alignment Margin Sustainability Fragmented UPMC Ranked in Gartner Top 25 Category Depth

7 MILESTONES CORE AREAS 1. Strategic Sourcing - Clinical - Indirect - Pharmacy 2. Value Analysis 3. Procure-to-Pay 4. Integrations 5. Healthcare Technology management

8 UPMC ENTERPRISES Proven Commercial Experience HC Pharmacy

9 Healthcare Transformation through Supply Chain Elevation

10 Top Industry Challenges Extreme Revenue Compression Shift to Value-based Care Population Health Impacts Patient-Centered Care Coordination Reimbursement Reforms Consumer Focus of Health Care Traditional Sourcing and Supply Chain Approaches No Longer Sufficient Cost Quality Outcomes Experience

11 MARKET LANDSCAPE TODAY Fragmented and Intensely Competitive

12 UPMC Strategically Elevating Supply Chain: Pensiamo Process Enablement Maturity Assessment Asset Optimization Integrations Sourcing P2P Optimization SC Network Design Demand Planning Pharmacy Supply Chain Healthcare Technology Management Business Process Optimization Supply Chain as a Project (SCaaP) Cognitive Analytics Business Innovation Business Realignment Supply Chain as a Service (ScaaS) Category Management Pharmacy Clinical Indirect CPO-on-Demand Program Management Value Analysis Supplier Diversity Contract Mgmt Healthcare Technology Management

13 PENSIAMO: Areas of ELEVATION Sourcing P2P HTM Integrations VAT & Governance

14 CATEGORY MANAGEMENT

15 CATEGORY MANAGEMENT Category Management is a transformative and holistic approach to addressing all non-payroll expenses. Customer Engagement The process includes the entire supply chain process. Plan Source Pay Operations Success depends on deep collaboration with and between customers and suppliers. Supplier Engagement Deliver Buy

16 CATEGORY MANAGEMENT Category Management assumes that cost shifting alone is insufficient Value creation is the ultimate purpose of category management Price Benchmarking Bidding Concentration Aggregation Cost modeling Target costing Cost Shifting Value Creation Total Cost of Ownership VA/VE Logistics Process End of Life Working Capital Utilization Supplier s Input Costs Risk Prevention Quality Improvement Service Improvement Innovation!

17 CATEGORY MANAGEMENT Value = Attributes + Services + Quality + Outcomes Total Cost of Ownership Cost management is a good place to start, but not the destination of total value contribution Cost Management Compliance Utilization Quality Improvement Service Improvement Price Performance Compliance Utilization Quality Improvement Service Improvement Benchmarking Bidding Concentration Aggregation Cost modeling Target costing Standardization Formulary Purchase Controls Payment Controls Receiving Controls Policy Optimization eprocurement Value Analysis Value Engineering Consumption Mgmt Fit for Purpose Intracase Utilization Mgmt Population Utilization Clinical Outcome Improvements Value-Based Contracting Improved Reliability Improved Resilience Improved Agility Recall Mgmt Patient Engagement Physician Engagement End User Experience Supply Chain Performance Improvement Unit Cost Procedure Cost Episode of Care Disease State Care Population Health

18 Up In the night More progressive supply chain solutions are necessary across a broad spectrum of services AND throughout the continuum of care Category Management Source Deliver Plan Buy Pay Spectrum of Services Continuum of Care Preventive Diagnosis Mgmt Treatment Recovery Rehab Palliative Source: SG2

19 Tailored approach to all spend categories Supply Power vs Demand Power AT Kearney Purchasing Chessboard

20 COGNITIVE ANALYTICS

21 COGNITIVE ANALYTICS BIG DATA ANALYTICS CONVENTIONAL DATA ANALTYICS External Data Populati on Level Data COGNITIVE DATA ANALYTICS Internal Data Internal Data Structured Database Goal: Combine similar datasets to analyze data Delivery: Provide descriptive and diagnostic results Shortcoming: Results are limited in scope and insight Internal Data Data Lakes and Warehouses Goal: Aggregate large datasets from seemingly disparate sources to gain insight Delivery: Identification of correlations previously not detected through traditional analytics Shortcoming: Determining whether correlations are meaningful and causal d W a r e h o u s e s D a t a L a k e s a n External Data Internal Data Population- Level Data Goal: Blend conventional and big data analytics to create predictive insights using advanced statistical and machine learning methods Delivery: Provide meaningful analytics for decision support

22 COGNITIVE ANALYTICS Descriptive Answers: How have we preformed historically? How are we currently performing? How do we compare to industry standards and peers? Diagnostic Answers: What factors contributed to underperformance? How can these be rectified to improve savings and quality of services? Predictive Answers: What are the current performance trends? What factors impact these trends? What are the predictions for future performance? What decisions will optimize future cost savings and quality of service?

23 PENSIAMO: Areas of ELEVATION Sourcing P2P HTM Integrations VAT & Governance

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