Download - Understanding and Choosing the Appropriate Logistics Model That Best Aligns With Your System’s Needs
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Understanding and Choosing the Appropriate Logistics Model That Best Aligns With Your System’s
Needs
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Panelists:
Dan McDow, Chief Operating Officer, Iowa Health System Consolidated Services
David McCombs, President ERP/Supply Chain Operations, Bon Secours, Health System, Inc.
Mike Switzer, Corporate Supply Chain Officer, North Mississippi Medical Center
Moderator: Jim Grieger, Principal, H3 Logistics, LLC
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Traditional Logistics Model
Distributor
Direct Vendors
Distributed Vendors
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Example #1: Alternative Logistics Model
Dedicated Service Center
Direct Vendors
Distributed Vendors
Distributor
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Example #2: Alternative Logistics Model
Dedicated Service Center
IDN, Distributor or 3PL Managed
Direct Vendors
Distributed Vendors
‘A’ Items
‘B’ Items
‘C’ & ‘D’ Items
Distributor
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System Comparisons
Iowa Health System Bon Secours Health System North Mississippi
Medical Center
Net-Patient Revenue
Total Operation Expense
Total Revenue: $1.9 billion
Net-Patient: $1.6 billion
Total OE: $1.6 billion
Tot Rev: $2.64 billion
Tot OE: $2.60 billion
Net-Rev: $737 million
Tot OE: $716 million
Total Supply Spend: $354 million $425 million $70 million
Staffed Beds: 2,092 2,555 857
(+ 266 nursing/LTC beds)
Number of Acute-Care facilities: 11 14 6
Number of Alt-Care, Clinics and other care delivery points:
3 colleges, 3 nursing homes, 15 rural managed, 75 clinics
9 LTC, 5 home health agencies, 9 freestanding ambulatory care centers, multiple MD practices
33 clinics, 4 alt-care, 3 wellness.
Home health visits: 332,512 (NMMC ships direct to home)
Geographic coverage: 350 mile spread centered in Iowa and extending out to Nebraska, South Dakota, Illinois and Wisconsin.
6 states in the Mid-Atlantic region: Maryland, Virginia, New York, Pennsylvania, Kentucky, South Carolina and Florida
95 mile service radius over 2 states and 22 counties.
Mississippi and Alabama
Procurement structure: Centralized system contracting, Currently procurement is decentralized although migrating towards centralization.
Centralized system contracting.
Decentralized procurement.
Centralized contracting and procurement.
Percent of supply-spend under direct contracts:
75 – 80 % 65 % 55 %
Other: Service center wih centralized sterile processing and CPT assembly. Extensive cross-docking operation. Distribution moving to low-unit-of-measure.
Service center with centralized sterile processing.
Service center implementing centralized sterile processing and case-cart assembly.
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Please describe your current supply chain model, and any aspect of it that you think is unique, and why you think it is unique.
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Describe how your models, or aspects of your models address the following system strategic initiatives; how you measure its impact; and your progress in reaching your intended goal or objective.
– patient safety, care and satisfaction– expense control and/or revenue
enhancement– staff and/or physician acquisition, satisfaction
and retention– community care and outreach– other
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Describe the challenges faced by systems in implementing alternative models, and suggest how you and others can overcome them?
• governance model• leadership understanding• information technology• Financial• Cultural• staff skill-sets• data availability and usability• clinical and physician preferences• outside third-party influence - GPO's, Distributors,
Manufacturers, Consultants, Regulatory Agencies/Commissions, etc
• other
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Describe to what extent the scale, scope, profit or non-profit status of a system helps or hinders these type of model changes.
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Describe what you and/or the system learned by implementing model changes, and what might be done differently the next time.
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Describe any new models or significant changes you and the system are planning or are in the process of implementing.
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Describe your supply chain wish list - what lies further out on the horizon that you might like to consider that could make a significant contribution to the success of yours and other health systems, and how might it impact traditional healthcare supply chain models?
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Questions & Answers