Collaboration Track. A Strategic Look at Today s Collaboration Models. Ed Hisscock - Moderator Maria Hames - Panelist Mike Langlois - Panelist

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1 Collaboration Track A Strategic Look at Today s Collaboration Models Ed Hisscock - Moderator Maria Hames - Panelist Mike Langlois - Panelist

2 Today s Collaboration Partnership: an agreement where parties agree to cooperate to advance their mutual interests. Collaborate: to work with another person or group in order to achieve something.. More cooperate traitorously with an enemy. "the indigenous elite who collaborated with the colonizers" synonyms: collude, conspire, fraternize, co-operate, consort, sympathize; informal, be in cahoots. "they collaborated with the enemy"

3 Today s Collaboration Types of Collaboration/Partnerships: Joint Ventures Co-Ownership Co-Marketing Others? Not more business = lower prices

4 Collaboration with Today s Supplier The term trading partner is somewhat deceiving, since most providers and suppliers operate quite independently of one another and come together only when it is necessary to conduct business. But since the healthcare supply chain comprises multiple organizations where each party s actions affect all of those with which it transacts, individual trading partners can only go so far to increase efficiency and reduce costs when staying within the confines of their own operations. -GHX Whitepaper 2011

5 Collaboration with Todays Supplier Providers and Suppliers, historically adversaries, need to collaborate to find ways to reduce cost and improve healthcare not just for themselves but for the survival of the industry Suppliers in Healthcare bear the burden of the selling, general and administrative expense costs at a rate of ~2X those of companies of other industries Barriers include: Trust, Useable Data, Accountability

6 Q1: When rating responses to RFPs for products or services, is price or quality of product generally rated with a higher weight? PROVIDER

7 Q1: When marketing products or services, do you strive to be lowest cost, highest quality or both? Supplier

8 Provider/Supplier Q1: When rating responses to RFPs for products or services, is price or quality of product generally rated with a higher weight? Q1: When marketing products or services, do you strive to be lowest cost, highest quality or both?

9 Q2: Do you typically take into consideration impact on quality of care and patient care outcomes when evaluating products and services? PROVIDER

10 Q2: When marketing products or services, do you emphasize and provide statistics on quality of care and patient outcome improvements? Supplier

11 PROVIDER/SUPPLIER Q2: Do you typically take into consideration impact on quality of care and patient care outcomes when evaluating products and services? Q2: When marketing products or services, do you emphasize and provide statistics on quality of care and patient outcome improvements?

12 Q3: Do you typically take into consideration total cost of product and services during the evaluation process, including cost to deliver the product or service, packaging disposable, product disposable, return rates, defect rates, ordering processing costs, etc? PROVIDER

13 Q3: When marketing products or services, do you emphasize lower costs of delivery, lower packaging disposal costs, lower product defects, ease of return of defective products, lower ordering processing costs, etc? Supplier

14 PROVIDER/SUPPLIER Q3: Do you typically take into consideration total cost of product and services during the evaluation process, including cost to deliver the product or service, packaging disposable, product disposable, return rates, defect rates, ordering processing costs, etc? Q3: When marketing products or services, do you emphasize lower costs of delivery, lower packaging disposal costs, lower product defects, ease of return of defective products, lower ordering processing costs, etc.?

15 Q4: Are you able to take into account ancillary cost impact when evaluating products and services such as labor impact, length of stay impact, mortality rates if applicable, etc? PROVIDER

16 Q4: When marketing products or services, do you emphasize impact on labor, length of stay impact, mortality rates, etc? Supplier

17 PROVIDER/SUPPLIER Q4: Are you able to take into account ancillary cost impact when evaluating products and services such as labor impact, length of stay impact, mortality rates if applicable, etc? Q4: When marketing products or services, do you emphasize impact on labor, length of stay impact, mortality rates, etc.?

18 Q5: Do you currently partner with any suppliers in a risk-share arrangement that is tied to key performance indicators? PROVIDER

19 Q5: Do you currently have or offer risk-share agreements with your customers? Supplier

20 PROVIDER/SUPPLIER Q5: Do you currently partner with any suppliers in a risk-share arrangement that is tied to key performance indicators? Q5: Do you currently have or offer risk-share agreements with your customers?

21 Q6: Do you participate in bundled product and/or service agreements with suppliers across multiple product and/or service lines? PROVIDER

22 Q6: Do you currently have or offer bundled-product and/or service agreements across multiple product lines offered by your company? Supplier

23 PROVIDER/SUPPLIER Q6: Do you participate in bundled product and/or service agreements with suppliers across multiple product and/or service lines? Q6: Do you currently have or offer bundled-product and/or service agreements across multiple product lines offered by your company?

24 Q7: How do you measure success of product conversion/ implantation (rank order 1 being most important/4 being least important) PROVIDER

25 Q7: How do you measure success of product conversion/ implantation (rank order 1 being most important/4 being least important) Supplier

26 PROVIDER/SUPPLIER Q7: How do you measure success of product conversion/ implantation (rank order 1 being most important/4 being least important) Q7: How do you measure success of product conversion/ implantation (rank order 1 being most important/4 being least important)

27 Q8: How much does your Health Care System spend on supply chain per year? PROVIDER

28 Q8: To help us categorize the size of the Companies responding, please tell us the approximate range your annual gross sales fall into Supplier

29 PROVIDER/SUPPLIER Q8: How much does your Health Care System spend on supply chain per year? Q8: To help us categorize the size of the Companies responding, please tell us the approximate range your annual gross sales fall into