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People & Opinions
Retired
GPO chief reflects on career,
post-career outlook
Physically, the now former Amerinet Inc. Chairman and
CEO Robert "Bud" Bowen wasn’t a giant among his peers, but that didn’t
seem to matter where it counted most.
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Bud Bowen |
Bowen’s industry influence and stature as the top
executive at one of the nation’s largest and leading group purchasing
organizations (consistently within the top five based on annual
purchasing volume) cemented him as a towering presence in a field that
has come under fire within the last 10 years – first for its relevance,
then for its practices – even as it approaches the century mark for
longevity. Through it all, Bowen and Amerinet emerged unscathed and
untarnished, which came as no surprise to him.
Bowen retired March 31 after two decades with the St.
Louis-based GPO.
Bowen joined Amerinet at its founding in June 1986 as
senior vice president, responsible for all contracting activities.
Promoted to executive vice president in 1988, Bowen served as the
company’s chief operations officer until the Amerinet Board of Directors
appointed him president in January 1998. Bowen added the title CEO in
July 2004. He was regarded for promoting and practicing ethical behavior
and corporate integrity throughout his career, something that served him
well during the Senate subcommittee hearings on alleged anticompetitive
practices by GPOs. During those hearings he emphasized the need for open
and inclusive contracting policies and higher customer service
standards, eliciting favor on Capitol Hill.
Bowen began his career in healthcare group purchasing
in 1977 as director of group purchasing for Haricomp Inc., an
organization that later became the Amerinet company, Vector (Providence,
RI). Prior to his work with Haricomp, Bowen served as director of
purchasing/materials management for New England Management Corp. in
Barre, VT. He also served as Tel-American coordinator for the American
Hospital Supply Corp. in Bedford, MA. He has served as a chairman of the
Health Industry Group Purchasing Association (HIGPA) and as the HIGPA
board representative to the Health Industry Business Communication
Council (HIBCC). His credentials also include terms as chairman and
board member of the Health Care E-business Collaborative (HCeC).
Barely a month after leaving his post, Bowen agreed
to share some parting thoughts with Healthcare Purchasing News
Senior Editor Rick Dana Barlow about his past, his present and his
future.
HPN :
Now that you’ve ridden off into
the sunset after 20 years with Amerinet and previously with American
Hospital Supply Co. what are some of those tasks you’d finally like to
tackle that you weren’t able to do because you were so busy?
BOWEN: It is actually 20 years at Amerinet, but 10
years before that with Vector (formerly Haricomp). Having a very active
career, with a great deal of travel, I’ve always been reluctant to
tackle any meaningful ‘projects’ around the home or in my personal
life. Now that I’m retired I’m going back to mowing my own lawn (because
no one does it as well as I will), washing my own car and taking time to
read more. I also plan to write a book on my family genealogy for my son
and his children to understand their roots and their history. Other
projects will include building shelving in the basement and finally
going through all those boxes of personal possessions that have been
building up over the years. Pretty boring stuff, I know, but having the
time to do it is a really great feeling!
HPN :
Occasionally, executives of your caliber tend to use the term ‘retire’
as a euphemism for ‘itching for new opportunities’ so what would keep
your foot active in the healthcare industry after you’ve had a chance to
decompress?
BOWEN: ‘Retirement’ for me is not code for ‘looking
for another job.’ I really do want to be retired from the demands of a
full time job. If I continue to stay involved in the healthcare
industry, and I think I probably will, I would like to get involved
working with small start-up, or niche manufacturers of emerging medical
technologies. There are a lot of small companies out there with great
products and technology, but the medical product supply channel is
totally different than almost any other industry you could
imagine. Helping these companies understand how to get their products
into the healthcare supply channel is something I think I could assist
with.
HPN:
Amerinet and other GPOs have tried
to do this for a number of years, even before the illustrious Senate
subcommittee hearings and federal scrutiny into alleged anticompetitive
activities. As a retired GPO chief executive who intimately understands
how the system works but is now an ‘outsider’ per se, what could you
offer if someone came to you for advice?
BOWEN: I’m not suggesting that I would necessarily
advocate a GPO strategy in all situations. In some cases it makes good
sense, but in others a company may be better off pursuing direct
relationships. Now that I am a ‘free agent,’ I think I could provide
good objective counsel to smaller suppliers.
HPN:
As you look back on your career, what’s the most creative thing you’ve
ever done?
BOWEN: I am especially proud of the original Elite
program of Amerinet that was launched shortly after Amerinet was formed.
We basically took the core concepts of pre-commitment and competitive
bidding that were used on a smaller scale at many regional purchasing
groups and adapted them to work on a national scale. While it was very
labor intensive and time consuming to process committed-volume,
competitive bids for over 1,000 hospitals, it was very effective in
driving lower prices and better terms.
HPN:
After all this time what would
people in the industry be surprised to know about you?
BOWEN: Probably that I never worked in a hospital or
health system.
HPN:
Do you believe that hospital or
health system experience, particularly in materials management, makes
for a better GPO executive, than someone with vendor sales experience?
Why?
BOWEN: No, not necessarily. I think either background
provides suitable knowledge and experience to be successful in the GPO
business. People might also be surprised to know that early in my
career, I was actually a licensed nursing home administrator and did
some interim management activities for the long-term care company for
which I worked.
HPN:
Finally, if a hospital executive
(be it a materials manager up to a CEO) or a vendor executive wanted to
join the executive team of a GPO, what sage advice would you give him or
her? (Allow me to remove ‘Don’t talk to the media’ as an option.)
BOWEN: Since you’ve taken away my best advice, it
would probably be to never lose sight of the important role that you
play in helping to lower the cost and improve the quality of healthcare
delivery in this country. This is something that touches every
individual in this country. Eventually, every member of your family will
encounter the healthcare system in some way. Treat your job as though
you are working to insure that your family member receives the best care
possible.
Group purchasing has become big business. Huge financial
transactions, thousands of customers, extensive technology and
sophistication. Part of what we have lost in this industry is the sense
of ‘ownership’ that individual hospitals used to have in ‘their’
GPO. When the local GPO awarded a contract, it was an achievement of all
the individual hospital managers that guided and participated in the
process together. I’d like to see hospitals regain this loyalty and
pride of ownership, but it will require GPOs and GPO executives to go
back to the roots of the business – building personal relationships
within the hospital, establishing trust and confidence with hospital
executives and business managers alike. HPN
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Worth Repeating |
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"Bar
code technology exists today and can drive process improvements that
can benefit healthcare organizations immediately, as opposed to
waiting for the possible business benefits in the future with RFID."
Jamie Wyatt, vice president,
Health Industries, Oracle Corp
"Advanced user systems,
including RFID, biometrics and user recognition features will become
commonplace on most carts and storage systems used throughout
hospitals."
Todd Ross, marketing director,
Artromick
"One of the biggest
misconceptions is not understanding that a GPO relationship is like
any other successful partnership. You can’t just sign a few
documents and assume all is right with the world. Both the CEO and
the supply chain manager must realize that you will have to
continually work the GPO relationship in order to achieve optimal
results."
Joe Colonna, director of The Coastal
Cooperative of New Jersey
"When I first heard about
catheter securement devices, I didn’t think it mattered much. We
were using a tape chevron with an overlying tape strip. Our IVs
weren’t lasting 72 hours."
Bonnie Smith, R.N., IV manager,
Holmes Regional Medical Center, Melbourne, FL
"One of the biggest lifesavers
for hand hygiene and infection control is the new alcohol-based hand
sanitizers. We’re seeing more compliance with hand hygiene because
of that. It makes it easier to comply with handwashing policies
because as you’re walking, you squirt some of it on your hands, and
you’re washing your hands while you’re walking down the hall to the
next room."
Linda Spaulding, RNC, CIC, CEO and
International Infection Control Consultant, InCo and Associates LLC |
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June
2006


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