Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning

Transcription

1 Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning Joe Volpe Vice President, Supply Chain Terri Kendrick Director, Procurement Services Wheaton Franciscan Healthcare August 6, 2012

2 Speaker Profile Joe Volpe, MBA-HA Vice President, Supply Chain 40 years in healthcare Terri Kendrick, MS (Medical Informatics), MBA Director, Procurement Services 20 years in healthcare, 10 years in manufacturing 2

3 Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning Agenda Healthcare System Profile Learning Objective Advanced Strategic Sourcing Business Needs Healthcare s Content Challenge Enhanced Clinician Control New Formulary-Based Requisitioning Enabling Mobility Status Update Improving Visibility Summary Questions 3

4 Wheaton Franciscan Healthcare Corporate Headquarters-Glendale, WI Large integrated regional health care system serving Iowa, Illinois, and Wisconsin 100 Sites: 11 hospitals; 70 + clinics; three longterm care; over 3,500 physicians 500 Million Annual Spend through HEMM ECRI Institute Supply Chain 2012 Award Winner 4

5 Learning Objective Learn how new formulary-based requisitioning tools can help better manage clinician spending through improved visibility and control. 5

6 Advanced Strategic Sourcing Business Needs Improved visibility within the supply spend Identify Value Analysis Opportunities Contract opportunities Non-Catalog purchases User friendly requisitioning solution Product formulary Improved departmental efficiencies Significant cost savings! 6

7 Advanced Strategic Sourcing Healthcare s Content Challenge Current Methodologies - The Nature of the Problem Non standard information from multiple sources Dynamic data with 20-30% annual change Contracts based on manufacturer, not vendor, without cross-reference Hospital vendor/manufacturer master does not match industry norm Many descriptive alias terms for both vendor/manufacturer and product descriptions No standardized representation or word order prevents side by side comparisons Insufficient descriptive product information for key PPI products

8 Advanced Strategic Sourcing Healthcare s Content Challenge What can we conclude? Data remains volatile, disparate, inaccurate All spend needs to be controlled not only medical surgical Current item master structure ineffective, failing to support majority of purchases Physician Preference Items (PPI) Most one-time only purchases Contracting process ineffective for PPI type items Current processes will not improve the outcome

9 Enhanced Clinician Control Consumer-based Shopping for Clinicians

10 Enhanced Clinician Control Find the Right Product

11 Enhanced Clinician Control Enable Functional Similar/Equivalent Choices

12 New Formulary-Based Procurement Formulary Control at the Point of Requisition

13 Enhanced Clinician Control Identify Value Analysis Opportunities Ensure right product, right place, right time, right price 13

14 Enhanced Clinician Control Mobile Formulary-Based Requisitioning 14

15 Enhanced Clinician Control Mobile Voice Item Search 15

16 Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning Status update Currently working to eliminate duplicate items and normalize item file Restructuring purchasing dept. to support new processes. Restructuring VA team Identifying contract mis-matches, pricing discrepancies, new opportunities, etc. Collecting information to support our PPI discussions with physicians Introducing the New World to our organization Improving Visibility 16

17 Advanced Strategic Sourcing Improving Visibility Lab Related 4% Other Types of Spend 7% Food Related 1% Office Supplies 1% Capital Medical 3% Printed Supplies Other 2% Materials/Subscriptions 1% Attire/Linen/Services <1% Med-Surg 33% Subscriptions/Fees/ Services 10% Technology/Software/ Services 11% Lab 13% Facilities 12% Annual Spend $364,473,716 17

18 Advanced Strategic Sourcing Improving Visibility AREA Annualized Identified Savings Opportunities to Date Price Line/Product Variance $3,081,655 Contract Price Variance $539,276 Total Projected Annualized Savings $3,620,931 18

19 Advanced Strategic Sourcing Improving Visibility ITEM Number of Times Purchased Number of Items Spend Non-File Item 1 Time 93,774 $211,662,396 Non-File Item 2 Times 592 $2,614,467 Non-File Item 3 Times 205 $970,058 Non-File Item 4 Times 160 $2,060,944 Non-File Item 5 Times 528 $14,240,437 Opportunities Add items to contract Identify comparable items currently on contract Improve tracking of misc. supplies and services 19

20 Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning Summary Paradigm shift to transparency Purchasing Spend visibility Product formulary Universal view Comprehensive, empowering data Improve decision making Enable supply chain to improve operating margins 20

21 Capture and Manage Clinician Spending Through New Formulary-Based Requisitioning Questions? 21