A new year brings new possibilities
– possibilities for change and for improvement.
Supply chain is the second largest
source of expenditures in your hospital. Subsequently, your role as a
supply chain professional is necessarily high-profile. Are there ways
that you can raise your game in the coming year?
As in most areas of hospital
management, successful clinical supply oversight is a relationship
business. Constant communication and relationship-building are the
foundation for making notable financial strides in your supply chain,
both for commodities and for clinical preference items.
Hospital executives, vendors,
physicians and other clinicians all play an integral role. Often,
materials managers are the administrator’s linchpin to broker détente
among the parties. As one materials manager in a large health system in
the Southeast says, success in clinical preference supply management is
a result of balancing "the triangle"– the sometimes delicate
relationship among the three parties of hospital, vendor and physician.
Relationships are not built
overnight. Credibility is earned, not conferred. As you shake off the
holidays and plunge into 2006, consider the following building blocks of
clinical supply effectiveness and develop a strong and balanced
"triangle" in the process.
• Building relationships with
physicians, key clinicians
In our consulting experience with
clinical programs across the country over several decades, one of the
key attributes of successful materials managers is this: They have some
level of personal relationship with the key physicians in the hospital.
Not only does this materials manager know them by name, but he or she
also has a good idea of the physician’s volume of cases relative to the
program, the physician’s hobbies (coaching soccer? fishing? cars? rock
climbing? playing drums?), the physician’s preferred vendor and his or
her level of loyalty and the reasoning behind it. The successful
materials manager has had a one-on-one conversation with these key
physicians at some point in the last six to eight weeks.
This type of interaction
contributes to success in two ways. First, it gives the materials
management professional great credibility by providing an ongoing view
to the challenges and demands that physicians face daily in clinical
practice. But it also puts a human face on physicians who may be
characterized by others as "high maintenance" individuals. There is no
other business quite like the hospital business. It’s difficult to be
effective without understanding the sometimes obtuse or adversarial
dynamic of clinicians and business people.
Second, it enables the reverse:
Physicians can regard materials managers as healthcare professionals,
too – albeit at the business end of healthcare – whose knowledge and
point of view support the hospital’s mission of serving its physicians
and community. It takes time, but the payoff can be tremendous. We have
seen materials managers wield tremendous organizational power once they
have learned to approach physicians as fellow professionals and, dare we
say it, peers in our complex industry.
With that, consider these suggested
building blocks of success in the management of "high-end" clinical
preference items this year:
• Create a clear line of sight and
communication with your C-suite.
It bears repeating: Supply chain is
second only to labor in terms of expense for virtually every acute care
healthcare provider in the U.S. The challenges faced by materials
managers have a significant ripple effect on the financial viability of
the entire organization. For this reason, materials management commands
attention at the "C-level" (CEO, CFO, COO, CNO, CMO).
It is not a lack of humility to
expect the C-suite to recognize the key role of the supply chain
professional and elevate it within the organization. C-level executives
are in a position to endorse the role of supply chain by recognizing
successes and opening doors.
Of course, the quid pro quo is that
the procurement executive earns respect through demonstrated competence
and continuous adherence to a high standard.
• Legislate supplier access to
clinicians in your facilities to reinforce that your organization speaks
with one voice.
Centralized purchasing processes
and fully implemented vendor access policies strengthen your
organization’s control of product quality and pricing.
• Coordinate an effort at the front
end of product choice.
A defined "technology product
review and selection" program includes clinicians and procurement
professionals. The result of this due diligence is that patients can
receive proven and effective therapies for their conditions. Engage end
users of the product and organizational resources such as Security
personnel to ensure that the selection process is maintained and not
subverted.
• Put competition before partnership
to control supplier negotiations.
Never forget that every supplier
encounter is really a negotiation. To think otherwise is to be naïve.
But it needn’t be adversarial either. Empower yourself with accurate and
defensible data and benchmarking to stay in control of the negotiation.
Bear in mind that "data" includes qualitative information such as the
position of key physicians regarding their clinical preference item
selections and vendor relationships. By completing the internal due
diligence, including educating and leveraging the C-suite, you can be
confident in estimating the "walk-away" positions of the hospital and
the suppliers.