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KSR Publishing, Inc.
Copyright © 2008

People, Places, Processes & Products that Influence the Supply Chain

INSIDE THE CURRENT ISSUE

August 2008

People & Opinions

Worth Repeating

"We’re pretty far out from the Needlestick Safety and Prevention Act and OSHA’s revision of their standard, but I think that we still have not crossed the finish line on getting safety to replace traditional devices in all applications, in all situations. There’s been a lot of progress, but we’re just not there yet. And I think that the farther we get away from it, we just have so many other competing priorities in the area of safety - both worker and patient safety - that it’s one of many safety priorities that hospitals are still working on."

Gina Pugliese, vice president, Safety Institute, Premier Inc.

"For Lean/Six Sigma, the Lean arena is broader in coverage and Six Sigma is deeper. For TQM/CQI, TQM is broader and CQI is deeper. Any combination of these disciplines can be used by skilled practitioners in healthcare environments to improve care delivery and patient satisfaction. In basic terms, Six Sigma addresses reduction in errors, and Lean focuses on reduction of waste."

Carl DeVore, director,
Lean Healthcare California

"Once a sore has developed, depending on the severity, it’s an injury that can cause loss of function, increased length of stay, and increased need for treatment. It can create a secondary infection that can lead to loss of life, which is what happened to actor Christopher Reeve. He died of an infection from a pressure ulcer."

Melissa K. Fischer, RN, MSN, CNOR, clinical specialist,
product manager,
Megadyne Medical Products

"We are beyond the ‘why’ and ‘what’ of the use of data standards in supply chain. We need to move to the ‘how’ and ‘when’ (how fast) for use of the standards to drive the interoperability needed for better care delivery."

Deborah Petretich Templeton, R.Ph., associate vice president, supply chain services,
Geisinger Health System

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Geisinger’s supply chain services team leader provides keen insights

Leading an award-winning supply chain management department may be a rewarding capstone to one’s career but the consistent financial and operational challenges that come with the territory don’t make it any easier.

Of course, being intrigued enough in the challenges to want to lead a department eight years prior to earning Healthcare Purchasing News’ 2008 Materials Management Department of the Year Award and then progressing on the long, hard climb is no easy task either.

But Deborah Petretich Templeton, R.Ph., associate vice president, supply chain services, Geisinger Health System, (Danville, PA), who had little to no experience in the field, wasn’t deterred. With her pharmacy background and project management experience, Templeton rallied the supply chain services team into a formidable customer-focused group. In the process, what initially may have been foreign to her now became familiar. She reports to the VP of Support Services.

In this wide-ranging exclusive interview with HPN Senior Editor Rick Dana Barlow, Templeton discussed the motivations, mindsets and machinations of a top-flight materials management operation.

HPN: What’s the secret formula that makes a leader in supply chain management? How does your department implement that secret formula?

Deborah Petretich Templeton

 

I don’t think there is a secret formula, but I believe there are core skills of success that apply not to just leadership in Supply Chain, but for leadership in any area. These include: Hard work, building a competent and effective team, having respect for individuals at all levels, being adept at adapting, recognizing that data can support theories. But judgment needs to be applied in final decision making, and that leadership is a matter of maintaining balance. Within the department, building a competent and effective team was the first step in improving customer service and our ability to grow into the kind of team that was necessary to support the organization. In addition, one of the key exercises that has contributed to the successes we have had is maintaining and constantly reworking our strategic plan. We recognize that our environment and organization are changing constantly. Our plan does not sit on a shelf. It is actively worked into tactics that have generated our successes as a team.

The next big trend in healthcare supply chain management will be … what? Why?

The application of data standards in the healthcare supply chain. The standards exist and the technology available will support the use of the standards. Application of these standards can truly revolutionize the way we do business. The standards will not only improve the transactional work in supply chain, but will contribute to improving the quality of patient care delivery by improving recall processes, supply and equipment tracking and identification, application of the standards in research of care delivery models, etc. We are beyond the ‘why’ and ‘what’ of the use of data standards in supply chain. We need to move to the ‘how’ and ‘when’ (how fast) for use of the standards to drive the interoperability needed for better care delivery.

Some in the ‘C-suite’ have criticized materials managers for being too technical and not strategic enough to ‘join their club.’ Do you agree?

No, but I believe it depends on the individual, as illustrated by the traditional definition of managers being focused on the day to day versus leaders who are strategically focused. Strategic planning is a critical skill in any leadership position. The successful supply chain leader has the ability to take the vision set by the CEO and relate it to strategy within supply chain to support that vision. The more exposure a supply chain leader has to global organizational challenges, the more opportunity he/she has to contribute to strategy development and organizational success. A strategic supply chain leader seeks out this information and does not wait for it to come to him/her.

What specific project did materials management complete where you felt they didn’t live up to your expectations?

Application of a new data analytics tool. Limited resources have not allowed us to maximize the power of the tool and realize the full benefit to be gained. We are getting there, but it has been slower than anticipated.

What specific project did your department complete where you felt they exceeded your expectations?

Our goal is always to complete a project with a ‘minimally perfect’ outcome. There have been and continue to be many successes. If I had to choose one, it would have been the implementation of our supply chain information system. The team came together to have a successful go live, in spite of struggles to get to this positive outcome.

If you could change one thing about your facility’s materials management department, what would it be and why?

Would have a direct seat on the System Capital Committee. Would not only get information, but understand what discussion went into final decisions.

In your opinion, what is your department’s toughest administrative challenge?

Keeping timely and accurate communications within the department as the organization and department continue to grow. [To solve] Ensure that the management team is well-informed and consistent in messaging and in turn is ensuring that the messages are getting to all team members. The staff is the ultimate driver of success. They need to know and understand where things are going and where priorities lie to continue to be successful.

What is your department’s toughest operational challenge? How might you solve it?

Hiring IT expertise to aide in data extraction and the development and implementation of tools to assist with contract management, strategic planning, data analytics, to name a few. [To solve] By developing a candidate pool through a structured student internship and profiling needs that will potentially be met through a relationship with a local college.

What’s the most enjoyable and the most difficult part of your department’s function?

Strategic planning and seeing the staff develop and generate individual successes as well as successes as a team. The most difficult part is recognizing that the ‘clockspeed’ at which healthcare business is moving is constantly increasing. This speed of change brings with it the challenge of handling increased business volume, rapid new product/technology introductions, changing regulations, decreased reimbursements, etc., and requires creative approaches to resource management and technology maximization and faster turnover of strategies and plans to support the organization.

How does the CEO view the materials management department?

The CEO views the Supply Chain Division as both strategic resource and a support service. As a Strategic Resource: Identifies and pursues standardization opportunities, which enhance the organizations integration and consistency of clinical practice; identifies technology and other efficiency opportunities; offers a platform of non-threatening collaboration with community hospitals and physicians; and ensures compliance with various State and Federal regulations. As a Support Service: Delivers significant cost avoidance and savings year over year;  identifies opportunities to consolidate the internal market/standardization/preference items; provides actionable information on utilization variation and cost; and focuses and further evolves technical/professional expertise to better deal with an aggressive ‘selling’ market.

What resources can the department count on and will they come every year – and not just in response to clinician complaints?

It is the responsibility of the Supply Chain leader to constantly monitor productivity stats and be prepared to justify resource needs (increases or decreases) as warranted. This should be a proactive approach and not one that is driven solely by complaints. There is no automatic addition of resources year to year.

What’s the one project or task you’ve always wanted materials management to tackle?

Just starting to explore connections with revenue and reimbursement.

What are some practical, common sense ways that materials managers can keep patient satisfaction in mind as they’re performing their duties?

• Accept feedback on products or equipment as opportunities to improve care delivery

• Patients don’t always have a choice about the situation they are in. You have a choice in the manner in which you support their care.

• Walk through your facilities as a reminder of who you are there to serve.

If you could change one public perception of your department, what would it be and why?

The lack of understanding of the complexity and strategy involved in Supply Chain operations versus the perception that it is just buying supplies or moving boxes.

What’s the most creative thing your department has ever done?

Bid against an external vendor for the project management of acquisition of supplies and capital for a major internal building project. We won the bid, and because of the success of the concept, we will continue the model for other building projects.

How can materials managers collaborate with other departments and professionals and convince them that their decisions are based on the financial health of the organization and not in denying them quality products or dictating patient care as the clinicians might tell the CEOs?

In our model, decisions regarding supplies and equipment are based on the ‘best of breed’ from a clinical standpoint, coupled with a review of the total cost of ownership for products, including service and maintenance considerations, etc., and a consideration on the reimbursement side of the picture as well. Supply Chain is first and foremost concerned with the provision of quality supplies and equipment that will best serve the needs of the patient as determined through clinician input.

The ‘fiscal health’ follows by deploying aggressive contracting and negotiation and monitoring of product performance to ensure the best value is being obtained. All committee final selections are documented with the analytics that helped to determine final decisions. Collaboration with departments, such as legal, revenue and reimbursement and finance, are also useful. Through interactions with these departments you can gain an understanding of additional considerations that are important to the organization from both a liability and financial standpoint, and should be considered in final contracting decisions.

What advice do you have for professionals outside of healthcare wanting to enter into the field of healthcare materials management?

Supply Chain activities offer a wide variety of career options. In healthcare, they become particularly interesting and fulfilling as you are contributing to the mission of caring for patients. The environment is constantly changing, so if you are looking for the status quo, it’s probably not a career in which you will be happy. Success will not always mean succeeding, but the best reward will be in knowing that a life has been made better by the contributions you can make to the success of the organization delivering the care. It is a journey that will sometimes be bumpy, oftentimes fun and very rewarding. It is a career well worth pursuing for those who are willing to take the ride.