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BELOIT HEALTHSYSTEM
MATERIALS MANAGEMENT:
CONSTRUCTING THE HEART WITH FF&E
INNOVATION Beloit Health System
1 | thebossmagazine.com | July 2017
BELOIT HEALTMATERIALS MACONSTRUCTING THE HE
Beloit, Wisconsin has a
strong history of heavy
industrial manufacturing.
The city celebrates its world-
class riverfront, a revitalized
downtown, internationally
renowned Beloit College,
historic residential
neighborhoods, and one of
the best farmer’s markets in
the state.
It’s also home base for Beloit
Health System, a multi-location
healthcare organization serving
a culturally diverse community
of more than 150,000 residents
on the state line of Wisconsin
and Illinois.
The system has a long history
in the community, starting in
1928 with the Beloit Municipal
Hospital that was in operation
for over 40 years. When a
new hospital was needed in
the early 60s, the city voted
to lease the hospital to Beloit
Hospital, a private, nonprofi t
corporation. Ground was
broken for Beloit Memorial
Hospital in October of 1967
and opened the doors in 1970.
In 2010, Beloit Hospital
partnered with Beloit Clinic
SC and became Beloit
Health System, a new
integrated health
system employing
close to 1,600
people including
physicians.
THE ROLE OF HEALTHCARE SUPPLYCHAIN DURING CONSTRUCTION
INNOVATION
BELOIT HEALTHSYSTEM’S FACILITIESBELOIT MEMORIAL HOSPITAL
BELOIT CLINIC
UW/BHS CANCER CENTER
NORTHPOINTE HEALTH & WELLNESS &
AMBULATORY SURGERY CENTER
OCCUPATIONAL SPORTS, HEALTH, AND
FAMILY MEDICINE CLINIC
BHS/BELOIT REGIONAL HOSPICE
COMMUNITY PARTNERSHIP: SCHOOL
DISTRICT OF BELOIT WELLNESS CENTER
4 OUTREACH CLINICS IN WISCONSIN:
WESTSIDE, JANESVILLE, DARIEN, AND
CLINTON
2 ASSISTED LIVING FACILITIES: RIVERSIDE
TERRACE IN BELOIT WISCONSIN, AND
NORTHPOINTE TERRACE IN ROSCOE,
ILLINOIS3 | thebossmagazine.com | July 2017
“We are very proud of our
history, facilities, and services
we provide, but it’s our staff
and the patients we serve that
make working in healthcare so
meaningful,” said Peggy Kolb,
CMRP, Director of Materials
Management at Beloit Health
System. “The physicians, staff,
and volunteers have been the
real reason people continue to
place their most precious gift,
their health, in our hands.”
Kolb started as a Medical
Records Manager with Beloit
in 1989, and today has 25
years of combined leadership
and operations experience in
healthcare. Her responsibilities
are wide ranging, and with the
recent construction projects,
a main focus has been
coordination efforts involving
the budgeting, planning,
and securement of furniture,
fi xtures, and equipment
needed to operationalize
new construction.
THE FF&E OF HOSPITAL
CONSTRUCTION
With two major construction
projects running
concurrently—The Hendricks
Family Heart Hospital and
Packard Family Cardiology
Clinic, and the NorthPointe
Surgery Center—Kolb and her
team had their work cut out
for them.
“The heart hospital and
surgery center are two
very dynamic and exciting
initiatives, but very different
from one another in their
complexity and scope. The
30,000-square-foot surgery
center, all new construction
and equipment, was an
addition onto our existing
NorthPointe Health and
Wellness facility in Illinois.
“The heart hospital is a
‘hospital within the hospital’
concept; with the entire
fourth fl oor being gutted,
renovated, and equipped
to support all aspects of
cardiovascular services.
The materials management
department needed to be
engaged from the start of
the planning processes to
the very end,” said Kolb.
There were many
conversations and discovery
sessions to identify what
equipment was needed to
support the projects. The
materials management
team had to become
knowledgeable about every
piece of capital equipment
in detail, learning how they
functioned, what would be
needed for support, what
power, space, and technical
considerations needed to be
considered, and determine
how to successfully navigate
back and forth between the
two projects to stay on time,
on course, and on budget.
The team also needed to
determine what could be
reused and what needed to
be purchased new; determine
budget impact on operationally
expensed versus capital
expensed items: and look for
commonalities of equipment,
in relation to “need by” dates
between the two projects.
Baseline and fi nal negotiated
quotes were obtained;
“WE ARE VERY PROUD OF OUR HISTORY, FACILITIES, AND SERVICES WE PROVIDE, BUT IT’S OUR STAFF AND THE PATIENTS WE SERVE THAT MAKE WORKING IN HEALTHCARE SO MEANINGFUL.” -PEGGY KOLB, CMRP, DIRECTOR OF
MATERIALS MANAGEMENT
INNOVATION
“THEHEARTHOSPITALAND SURGERYCENTER ARE TWOVERY DYNAMIC ANDEXCITING INITIATIVES,BUT VERY DIFFERENT FROMONE ANOTHER IN THEIRCOMPLEXITY AND SCOPE.”-PEGGY KOLB
Month 2015 | thebossmagazine.com | 6
technical specifi cations
and quantities verifi ed, and
guidelines checked to make
regulatory guidelines would
be met.
The heart hospital project
was broken down into
three construction phases:
remodeling of the Cardiology
Clinic and Vascular Services
areas; addition of a state-
of-the-art hybrid OR; and
renovation of an existing wing
for eight additional critical
care (CCU) patient rooms.
Before that could start,
existing personnel and
services that currently
lived on fourth fl oor
who were not
part of project
had to be relocated elsewhere
within the system.
“Since some of my previous
background included space
planning and utilization, I
could facilitate and coordinate
many of those roadmap
moves in conjunction with
our Facilities Director, which
made driving GPO (group
purchasing organization)
contract utilization and
procurement easier,” she said.
“It also allowed me to stay
ahead of construction to make
sure purchase decisions and
equipment delivery schedules
would be aligned with rough-
in and installation needs on
the construction side.”
MANAGING DELAYS
While initially this process
was done for each project
at separate intervals, project
delays due to the Condition of
Need (CON) process in Illinois
pushed the NorthPointe
Surgery Center start date out.
“The impact of that was
we now had two very large
construction projects, in
two different states, running
concurrently with each
other in every phase of the
build, including design/
development, ground
breaking, ordering and
completion schedules,
occupancy, and go-live
implementations,” she said.
INNOVATION
7 | thebossmagazine.com | July 2017
And since the delays spanned
several months, Beloit had
to go through the discovery
process again for each piece of
capital on each list. Equipment
had now become obsolete by
the manufacturers, infl ation
was affecting initial baseline
budget, project scope had
changed, and the same
resource people were trying
to manage both builds at the
same time.
For Kolb, that meant meeting
with the appropriate directors
and end-users, re-evaluating
151 unique pieces of capital for
the Surgery Center and 209
unique pieces of capital for
the Heart Hospital; arranging
equipment trials; working with
the Construction Coordinator
to determine changes in
the technical specifi cations;
and bundling like equipment
between the two projects and
in conjunction with the team’s
regular routine capital needs
for greater negotiating power.
Currently, the Heart Hospital
is in the third and fi nal
stage of the redesign and
will start seeing patients in
the hybrid OR in May, 2017.
The NorthPointe Surgery
Center build and fi t out is
complete but waiting for fi nal
regulatory inspections.
“Now that the major outfi tting
of FF&E is complete for
both projects, my focus
shifts from equipment
selection and procurement
to operationalizing the
departments in regards to
inventory management and
distribution for patient care
needs,” shared Kolb.
STAYING AHEAD OF THE
CURVE
One of the biggest challenges
for supply chain related to
construction, Kolb said, is
having enough resources to
dedicate to the project on
a full-time basis. There are
many details when purchasing
capital equipment and keeping
all the elements moving
within budget, timeframe,
and sequence, can be diffi cult
when focus is interrupted by
other job responsibilities and
competing priorities.
Working the two different
projects at the same time,
with different but similar
purchase requirements
could be confusing, but it’s
important to stay organized,
communicate daily with the
construction leads, and track
progress of the items as you
go, she shared.
Additionally, keeping up
with changes in scope and
re-evaluating the equipment
that might be affected by
the changes can be very
time-consuming and costly
to a facility if the details
are not re-analyzed and
communicated to the project
leads in a timely manner.
“Luckily, my materials staff is
very willing to learn and pick
up additional tasks. We share
knowledge and collectively set
priorities based on information
known at that time. We made
sure we were aligned as to
what needed to be done next
and had daily updates and
progress reports, and of course
threw some fun in the mix.”
“WE MADE SURE WE WERE ALIGNED AWHAT NEEDED TO BE DONE NEXT ANDDAILY UPDATES AND PROGRESS REPOROF COURSE THREW SOME FUN IN THE -PEGGY KOLB
Month 2015 | thebossmagazine.com | 8
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AS TOD HAD RTS, AND MIX.”
INNOVATION
EXPERT ADVICE
With as much experience as
Kolb has in the fi eld, we’d be
remiss if we didn’t fi nd out
some of her tips for running
an increasingly complex
supply chain for a hospital:
She said it’s important to
continually invest in building
the skill level of the materials
staff. As well as leadership, the
staff needs to stay abreast of
the political, environmental,
and regulatory environments,
and have the opportunity to
use that knowledge, provide
input, and network with peers
from other healthcare facilities.
Many times staff are asked to
do tasks way outside of their
normal roles; while the answer
is important, knowing how
to fi nd the answer and what
barriers might affect it, is
where the real value lies.
Make sure when budgeting
or when getting ready to
order that clinical leadership,
providers, and end users of
the equipment have been
included in the discovery
process. As you evaluate the
item for pricing and service
agreements, it’s imperative
to look full scope at safety
regulations, what departments
or services the equipment
might touch, where it might
travel, and how it all be used.
“We are a community
health system dedicated
to our corporate values
of Engagement, Quality,
Satisfaction, and Integrity.
We are progressive in
vision, providing an array of
diverse medical procedures
in state-of-the-art facilities,
like the Hendricks Family
Heart Hospital and Packard
Family Cardiology Clinic; the
NorthPointe Surgery Center;
and our UW/BHS Cancer Care
Center,” she said.
“The commitment to our
community for providing
quality healthcare to our
patients continues, and is
demonstrated by these types
of construction initiatives.
Bringing quality healthcare
and keeping it local in our
community, as well as the
safety and well-being or our
patients and employees, will
always be my fi rst priority.
“I am very proud of the work
the Materials Management
Department contributes and
feel privileged to have the
opportunity to help build and
strengthen our foundation
that was set so many
years ago.”
“BRINGING QIT LOCAL IN SAFETY ANDAND EMPLOYPRIORITY.”-PEGGY KOLB
QUALITY HEALTHCARE AND KEEPING OUR COMMUNITY, AS WELL AS THE
D WELL-BEING OR OUR PATIENTS YEES, WILL ALWAYS BE MY -FIRST
July 2017 | thebossmagazine.com | 10
POWERED BY
1969 West Hart Road
Beloit WI 53511
Phone: 608.364.5011
Fax: 608.364.5536
Email: [email protected]
www.beloithealthsystem.org
BOSSM A G A Z I N E
BELOIT HEALTH SYSTEM