creating a chemicals policy april 29, 2005 john strong president and ceo

Creating a Chemicals Policy

April 29, 2005

John StrongPresident and CEO

Copyright © 2005, Consorta. All rights reserved. 2

Who is Consorta?

Founded May, 1998 Illinois Business Corporation--Cooperative Owned by 13 Catholic Health Care Systems

• 60% of all U. S. Catholic Hospitals are Members— 527 Acute Care Sites; 54,600 Beds— 1,776 Non-Acute Care Sites

• 4 of the 5 Largest Catholic Health Systems in the U. S. are Owners

Purchase Volume: Approximately $4.1 Billion Annually 708 Group Purchasing Contracts Awarded by the Members Mission: Remove Cost from Owner’s Supply Chain

Consorta Shareholders Work as a Group to Bring Better Value and Meaningful Change to Selected Product Categories

Purchase as a GroupPurchase as a Group Provide Supply Chain Management Tools Provide Supply Chain Management Tools•Aggregate Volume to Obtain Price DiscountsAggregate Volume to Obtain Price Discounts•Commit Volume to One or More SuppliersCommit Volume to One or More Suppliers•Obtain Administrative Fee from Suppliers,Obtain Administrative Fee from Suppliers, Deduct Operating Expenses and ReturnDeduct Operating Expenses and Return Balance to OwnersBalance to Owners

•Conduct Product EvaluationsConduct Product Evaluations•Provide Information and ReportingProvide Information and Reporting•Furnish Technology Assessment andFurnish Technology Assessment and Value Analysis ToolsValue Analysis Tools•Product Conversion AssistanceProduct Conversion Assistance


Consorta is One of the Five Leading GPOs in the U.S.Membership Profile

Ascension Health – St. Louis, MO

Caritas Christi Health Care – Boston, MA

Catholic Health East – Newtown Square, PA

Catholic Health Initiatives – Denver, CO

Hospital Sisters Health System – Springfield, IL

Ministry Health Care – Milwaukee, WI

Provena Health – Mokena, IL

Sisters of St. Francis Health Services – Mishawaka, IN

St. Clare’s Health Services – Denville, NJ

St. John Health System – Tulsa, OK

Trinity Health – Novi, MI

Via Christi Health System – Wichita, KS

Wheaton Franciscan Services – Wheaton, IL

AK

AL

ARAZ

CO

DC

FL

GA

HI

IA

ID

IL IN

KS

KY

LA

MA

MI

MN

MO

MS

MT

NC

ND

NE

NM

NV

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

WA

WI

WV

WY

NY

ME

CT

VA

MD

NJ

DE

NH

CA

PR

Owners Owners


Environmental Stewardship

Consorta is committed to conduct business in a socially responsible and ethical manner that protects the safety of its employees, and its Shareholders' patients and employees, as well as the environment.


Consorta’s Position Statement Our Shareholders Want a Leadership Role

ShareholderShareholderDirectionDirection

• Improve Impact on EnvironmentalImprove Impact on Environmental QualityQuality• Reduce CostsReduce Costs• Healthier EnvironmentHealthier Environment

• Pooling Hospital Product ExperiencePooling Hospital Product Experience• Feedback to SuppliersFeedback to Suppliers

• Hold Suppliers Accountable forHold Suppliers Accountable for Performance ExpectationsPerformance Expectations


Shareholders’ Objectives

• Enhance work place safety• Reduce waste and waste disposal costs• Become better environmental stewards and neighbors

• Educate about pollution prevention opportunities• Provide tools to minimize waste volume• Reduce the use of persistent, bio-accumulative toxic chemicals

• Eliminate the use of mercury• Lead by example


Purpose of Chemicals Policy

• Shift responsibility to chemicals manufacturers to provide safety data

• Leverage additional disclosure of material content and safety

• Signal market to greener/safer product innovation• Improve healthcare financial margins• Build momentum using healthcare’s opinion leader status


Lack of a Chemicals Policy…Creates a Burden for Users

Response to emerging public concern

Research hazards Research alternatives Test alternatives Make decisions in uncertainty Continue to use potentially

hazardous materials

Face potential liability from the use of hazardous materials

Face an unpredictable regulatory climate

Operate in uncertainty

Policy change at the national level will relieve this Policy change at the national level will relieve this burden on healthcare organizationsburden on healthcare organizations


Consorta’s Approach

Consorta and its Shareholders are adopting a chemicals policy shaped by guiding principles shared with others working to protect people and the environment and to honor healthcare’s dictum to First, Do No Harm.


Guiding Principles

Precaution: Act when credible evidence of harm is established.

Substitution: Evaluate and seek to replace hazardous substances with less hazardous alternatives.

Extended Producer Responsibility: Physical/financial responsibility through post-consumer product life-cycle.


Guiding Principles

Hazard Analysis vs. Risk Assessment: Use hazard analysis to assess safety instead of risk-based approach.

Life Cycle Impact: Consider chemical hazards throughout product life time.

Materials-Based Approach: Whenever possible, influence product design.


Guiding Principles

Disclosure: Seek greater disclosure of material content of products from suppliers.

Accountability: Establish goals and publicly report on progress.

Manufacturing and RetailManufacturing and Retail Healthcare Healthcare

Product “Specifiers” Product “Takers”Product “Specifiers” Product “Takers”


Objectives and StrategiesEliminate/Improve Management of Hazardous Products

Goals Minimize Eliminate PVC &

DEHP• IV Bags & Tubing•Other plastics in direct contact

with patient’s blood or body fluid Find Alternatives to PVC and

Chlorinated Substances Identify and Contract for EPP

Products•Cleaning products•Building products• Furnishings

Activities Work with Select Manufacturers

to eliminate DEHP•Use methods similar to latex

Support Work of Advocates to Require DEHP Labeling•H2E•HCWH

Educational Programs•Online resources

Contract for Alternative Products whenever available•Meet with senior executives

whenever possible• “Vote with our dollars”

Hazardous Chemicals Persistent, Bio-Accumulative, Toxic PollutantsHazardous Chemicals Persistent, Bio-Accumulative, Toxic Pollutants


Policy Implementation

• Integrate core guiding principles in contracting process•Disclosure during the RFP process

• List and prioritize chemicals of concern •Dynamic process starting with,

• Mercury• DEHP• PVC• Brominated flame retardants

• Communicate with suppliers• Educate, report• Advocate

Creating a Chemicals Policy

…we’ve only taken the first step.

creating a chemicals policy april 29, 2005 john strong president and ceo

Documents

catholic health care

oktrinity health novi

wiprovena health mokena

john health system tulsa

members527 acute care

nonacute care sites

chemicals manufacturers

shareholders objectives