INSIDE THE CURRENT ISSUE

February 2007

Fast Foreward

Making a Majors difference

Thankfully, you don’t have to be a celebrity to be a leader. You don’t even have to look like a celebrity to be a leader (although that helps). Robert "Bob" Majors, who died last month in his office while doing what he loved, wasn’t a celebrity (his jokes and singing at least put him on par with most American Idol and Comedy Central acts), nor looked like one but this long-time veteran materials management director – no, executive – certainly made a difference. (Read his tribute - CLICK HERE)

With a storied and successful management career that nearly spanned the entire life of Healthcare Purchasing News, Majors had high hopes for a profession he held in high esteem. He firmly believed that materials management directors are CEOs of their organization’s supply chain. Few people in this industry could make that statement, publicly or otherwise, and not be laughed off the dais. Not so with Majors. After a private conversation or a public educational seminar led by him you walked away a believer.

"We are responsible for that whole endeavor," Majors said at a conference in the fall of 2004, "much like the CEO of the hospital. Materials managers have unique relationships throughout their organizations because everybody has to buy something." Simplistic, perhaps, but profound nonetheless. Just like an old-time gospel evangelist, Majors consistently scolded the industry, lamenting the fact that "supply utilization information is not available in most organizations – not tracked, not recorded or not used – and much of what we do have is inaccurate or untimely and needs to be cleansed." Yet he wasn’t looking for forgiveness for the industry, or excuses, but considerable change – repentance. "We need to sell our value to the Os," he said, "because they may not even know who we are." With Majors’ voice gone (but hopefully not his influence), those efforts just became a little rougher around the edges. Perhaps it’s time for some organization to step up to the plate and inaugurate an annual "Robert Majors Award for Leadership in Healthcare Supply Chain Management."

When people who make a difference leave us it empowers the world they left behind to be that much more resistant to change. That’s why this profession needs more Bobs.

MONEY TALKS. Aggregate profits at community hospitals reached a higher ceiling in 2005 at $28.9 billion, up from a record $26.3 billion the year before, according to data released by the American Hospital Association. In addition, the aggregate profit margin earned by community hospitals amounted to 5.3 percent in 2005, which was the highest margin in seven years. Just to balance the scorecard, uncompensated care costs at community hospitals jumped 7.1 percent to $28.8 billion during the same period from $26.9 billion in 2004, according to the AHA. Also, shortfalls from Medicare and Medicaid rose 14.5 percent to $25.3 billion from $22.1 billion. Before Congress starts to raise its hackles and virtually accuse the hospital industry of Hollywoodesque film studio accounting, it should compare the earnings at not-for-profit facilities to what’s earned by for-profit insurance companies, managed care companies and payers. On second thought, that probably won’t happen because a portion of the payer community’s profits are earmarked to Congressional campaigns for favors.

WINDOW DRESSING. The GAO released a report on health information technology, saying that the Department of Health and Human Services (HHS) is continuing efforts to define its national strategy. With a 2014 deadline, apparently they’re in no hurry. After all, coming up with a workable and worthwhile strategy should take longer than three years – even if the taxpayers are bankrolling all the "strategery" going on in Washington. Now imagine if Microsoft ran your health information technology initiative…but forget it. The government doesn’t do windows.

FDA HAL. The Food and Drug Administration announced plans to automate its procedures and systems for collecting adverse event and safety reports about drugs and medical devices, possibly within two years. Currently, the information is sorted and rerouted by hand, even if it’s submitted electronically. Count on product review letters and warning letters by 2009 to be replaced by the ominous audio recording, "I’m sorry, Dave, I’m afraid I can’t do that."

Celebrate success, readers.