Elizabeth Hilla, Senior VP, HIDA Christopher Johnson, Supply Chain Operations Manager, Tufts Medical Center

John Gould, VP of Operations, Catholic Health Initiatives Integrated Supply Chain Dennis Mullins, Director of Supply Chain Integration, Baylor Scott & White Health

Productive Partnerships: Ideas on Maximizing Value with Your Distributor

About HIDA

• Health Industry Distributors Association (HIDA) • Trade association representing healthcare distributors • 125 member distributors • 130 manufacturers who use distribution • Serving approximately 295,000 healthcare facilities across the

U.S.

Streamlining Healthcare

Tufts Medical Center – Our Mission

“We strive to heal, to comfort, to teach, to learn and to seek the knowledge to promote health and prevent disease. Our patients and their families are at the center of everything we do. We dedicate ourselves to furthering our rich tradition of health care innovation, leadership, charity and the highest standard of care and service to all in our community.”

Tufts Medical Center – Our History

• Founded in 1796 by forward-thinking Patriots like Paul Revere and Sam Adams

• Boston Dispensary was first permanent medical facility in New England and one of first in country

• 3rd oldest hospital in the country

Our History – Floating Hospital

• In 1894, Floating Hospital began sailing Boston Harbor to help sick children and their mothers

• During 31 years at sea, Floating Hospital was the site of many important medical advances, including the development of baby formula and the human milk bank.

Who We Are Now

• Tertiary/Quaternary AMC • 415 beds, 24 bassinets

• 98 intensive care beds • 573 medical staff • 19,914 inpatient discharges

• Case Mix Index: Medicare 2.0 • Level I Adult and Pediatric Trauma Centers

• 41,065 emergency department visits

• 60 outpatient clinics • 350,957 visits

(FY 2013 discharges/visits)

Part of Our Neighborhood

• In downtown Boston’s Chinatown/Theater District neighborhood, also serving South Boston and Back Bay

• 12 buildings • 1.4 million sq. ft. • Integrated campus

Tufts Supply Chain

• Acute: LUM program with regional distributor • Carts delivered to loading dock tagged for all

departments • 5 deliveries per week -- arrives at 11pm Sunday

thru Thursday • 12pm cutoff time – 12 hour turnaround time

• Storeroom being converted into Stat Room • Handhelds, Pyxis, and Wavemark generate

orders

What Keeps Us Awake

• Readmissions penalties • Reimbursement cuts • Increases in supply costs • Reducing on hand inventory levels • Remove nursing/clinicians from supply chain

equation

Our Supply Chain Challenges and Opportunities

• Looking to move inventory off-site to reclaim space for patient care – old infrastructure with limited space

• Finding ways to tie outcomes to product choices in order to improve care quality – CQO

• 2 different ORs – only 1 CPD • Multiple stocking locations for $$ items

Catholic Health Initiatives

• Not-for-profit health system with $20B in assets and $12B in revenue

• 87 hospitals in 18 states, incl. 21 critical access • Over 500 clinics & 3,000 employed physicians • 46 home care agencies • 40 long term, assisted living, and residential • “Imagine Better Health”

CHI’s Supply Chain

• Integrated program including • Contracting, Clinical Value Analysis, Operations,

Pharmacy, Purchased Svcs, Clinical Engineering, Facilities Mgt, Property & Real Estate

• Single ERP, Vendor & Item Master • Central Procurement & AP in Denver • Offsite clinics and physician offices: JIT program

with 2 non-acute distributors • National Service Lines incorporate supply chain

strategies for clinical products

What Keeps Us Awake

• Adjusting to new sites of care at lower reimbursement

• Increasing costs of higher acuity • Covering the costs of EHRs & IT infrastructure

requirements

Our Supply Chain Challenges and Opportunities

• Managing new technology opportunities & challenges – cost/outcomes/control

• Maintaining access to good data for identifying opportunities

• Employing lean principles in operations • Finding ways to tie outcomes to product choices in

order to improve care quality

Baylor Scott and White Health

BSWH North (Baylor)

BSWH Central (Scott & White)

Baylor Scott and White Health

The Asset Location model – BS&W NTX • 90% full case shipments to hospital asset rooms • Inventory, 3-7 days in par, 3-7 days in asset rooms The Pick to Par model – BS&W CTX • 90% “eaches” shipped to hospitals • Inventory, 3-7 days in par, DC

What Keeps Us Awake

• Merger activities • Policy/procedures • Training • Roles and responsibilities

• Product conversions • Speed to conversions • Effective transitions

• System standardization • 43 hospitals • 6,000+ affiliated physicians

Our Supply Chain Challenges and Opportunities

• Speed to conversions • Helps to achieve savings goals • Needed to standardize product opportunity

process

• Integrate value analysis into every opportunity • Ensure all stakeholders are involved in the

process

Supply Chain Services Sourcing Informatics

Operations

Procurement

PMO & Training

Facility Operations

Supply Chain Services Sourcing Informatics

Operations

Procurement

PMO & Training

Facility Operations

• New Product Intro • VAT Review • Contract Development • Financial Analysis • Nurse Training • Masterfile Build • Inventory Setup • PAR Adjustments • Product Conversions

Questions