Inside the Current Issue

Cover Story
Broward patient advocates for flexible supply chain

Self Study Series

Newswire
Special Focus Guides
Purchasing Connection
Resources
Show Calendar
H HPN Hall of Fame
HPN ProductLink
Classifieds
Issue Archives
Advertise
About Us Home
Subscribe

 Sign up for HPN Daily Updates by E-mail

Special Event Photos

Contact Us

KSR Publishing, Inc.
Copyright © 2010

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

INSIDE THE CURRENT ISSUE

July 2009

Up Close

The Hospitals of Mountain States Health Alliance
 
Tennessee

Elizabethton

• Sycamore Shoals Hospital

Johnson City

• Johnson City Medical Center

• Johnson City Specialty Hospital

• Franklin Woods Community Hospital

• Niswonger Children’s Hospital

• North Side Hospital

• James H. & Cecile C. Quillen Rehabilitation Hospital

• Woodridge Hospital

Kingsport

• Indian Path Medical Center

• Indian Path Pavilion

Mountain City

• Johnson County Community Hospital


VIRGINIA

Abingdon

• Johnston Memorial Hospital

Clintwood

• Dickenson Community Hospital

Lebanon

• Russell County Medical Center

Marion

• Smyth County Community Hospital

Norton

• Norton Community Hospital

 

MSHA Materials Management Leadership

Name

Title

Dale Claytore

Vice President

Dave Begley

Corporate Director, Materials Management

Ken York

Director, MSHA Purchasing

Terri Hamby

Corporate Vendor Relations Manager

Al Salama

Corporate Contracts Manager

Joey Fields

Materials Management Information Systems Manager

Steve Hobbs

Washington County Supply Chain Manager

Kathy Hickman

Site Manager, Indian Path Medical Center

Dennis Couch

Site Manager, North Side Hospital

Sherry Hinkle

Site Manager, Sycamore Shoals Hospital

Jess Simerly

Site Manager, Johnson City Specialty Hospital

Greg West

Site Manager, Smyth County Community Hospital

Peggy Holmes

Site Manager, Russell County Community Hospital

Gary Wampler

Site Manager, Norton Community Hospital

Anthony Miller

Site Manager, Johnston Memorial Hospital

David Bacon

Standardization Manager

Connect with this month's featured Advertisers:

Amerinet
Armstrong Medical Industries
ASCENT Healthcare Solutions
ASHES
BD Medical
BlackTie Medical
Cardinal Health
Clorox Professional Products
DeRoyal
Exergen Corp
Global Healthcare Exchange
IRSG
Johnson & Johnson Wound Management - Biopatch
Lawson Software
MedAssets
Messe Dusseldorf
Michael & Company
Mobile Instrument Service
PAR Excellence
PHG Technologies
RF Surgical Systems
Ruhof Corporation
Sage Products
Spectrum Surgical Instruments Corp.
Stanley Innerspace
Status Blue
SteriCert
Strategic Value Analysis
Surgicount Medical
Tronex
Vendormate
VHA
World Congress

Mountain States MM team leader highlights motivations behind their growth

by Rick Dana Barlow

Cultivating a multistate integrated delivery network in a more rural region can be challenging enough but constructing an effective and efficient corporate-level materials management operation uniting the disparate facilities can be an even greater hurdle.

But that didn’t sway the team at Johnson City, TN-based Mountain States Health Alliance, led by Dale Claytore, vice president. Four years ago, MSHA launched an initiative to centralize its supply chain operations, an effort that earned the organization the 2009 Materials Management Department of the Year award from Healthcare Purchasing News.

Claytore shared with HPN Senior Editor Rick Dana Barlow his team’s attitudes and motivations behind what, how and why they do what they do as a glimpse into what makes them so successful.

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

Dale Claytore

CLAYTORE: There is no secret formula. It’s all about hard work and great people. It’s a combination of hiring the right people who genuinely embrace the mission, vision and values of the organization. Folks who truly believe they are part of the healthcare delivery process. We are referring to people with an exceptional work ethic, who are focused, possess common sense and are unafraid of change.

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

The ‘next big trend’ in healthcare supply chain management is technology that is commonly used by the commercial retailing giants; e.g., RFID, inventory management, mandatory delivery schedules, wireless infrastructure, etc. Since capital dollars are scarce in the healthcare industry, it is challenging to get a supply chain enhancement approved. Understandably, healthcare leaders opt for projects with the most significant return on investment. As a result, supply chain leaders must present a compelling case for needed supply chain management upgrades and continue to find ways to get the job done with outdated systems.

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

MSHA has developed an effective strategic planning process. Strategic goals cascade down from the corporate level to the hospitals to the departments and subsequently to the various front line work units. Concurrently, the organization’s key business units and its key support entities create viable strategic work plans that are consistent with the organization’s goals. To this end, a Supply Chain Strategic Plan is created each year and serves as the compass for benefit added initiatives. While MSHA’s supply chain leaders are passionate about being part of daily healthcare delivery, they are sufficiently strategic in vision and purpose.

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

There have only been a few projects that did not pan out as planned. The common denominator was unanticipated changes in the external environment.

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

The Vendor Certification Program, The Recall, Alert, and Advisory Center (TRAAC) and the establishment of the Corporate Contracting department have all exceeded our expectations.

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

We need more space in order to be more effective. Our flagship hospital was built 30 years ago. As a result of the addition of new programs and clinical functionality, the hospital’s footprint was increased significantly over the years, while the materials space has decreased.

In your opinion, what is your department’s toughest administrative challenge? How might you solve it?

We need to be grooming tomorrow’s supply chain leaders today. To this end, Materials Management should develop (in concert with the organization’s HR team) internships for college juniors and subsequently provide attractive jobs for the most promising talent.

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

An everyday challenge is coping with individual interests in order to maximize the contribution to the whole.

What are your top three priorities for the remainder of 2009 and for 2010?

1. Maximize deep discount purchasing of equipment for newest hospital being constructed.

2. Maximize the value of a recently acquired spend analytic tool that will enable us to benchmark our entire corporation’s spend.

3. Establish a supply distribution center that includes facilities for preparing sterile custom and minor surgical packs.

What do you believe are some barriers to growth for your department in the future and how do you plan to overcome them?

Scarce capital dollars for supply management tools is a barrier to becoming all that we can be. The remedy is to continue to demonstrate daily value and only request capital for those things that are truly beneficial.

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

It is gratifying to be part of an organization that professionally and compassionately meets the healthcare needs of the community.

What’s the one project or task you’ve always wanted materials management to tackle but the department has yet to pick up the ball?

Establish a supply distribution center that includes facilities for preparing sterile custom and minor surgical packs.

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

Everyone in the supply chain should realize that they are indirect healthcare deliverers — an important part of the overall healthcare delivery process.

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

With the advent of increased education and electronic data management, the former image of being just ‘box handlers’ has largely dissipated. The image of Materials Management team members has vastly improved in recent years.

What’s the one job/assignment your department probably should have turned down?

Materials Management attempted to ‘police’ non-safe supplies. The current system is working much better in that others have the responsibility for federal OSHA, Tennessee OSHA, and/or State of Tennessee compliance. Materials Management supports or implements the final decision of those responsible.

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

The Recall, Alert, and Advisory Center (TRAAC).

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?

With regard to supply selection and acquisition, the supply selection process used by each Value Analysis Team minimizes barriers between the clinical end-users and Materials Management. The selection process asks the following questions: (1) Is the new item efficacious? (2) If this item is purchased, what can be removed from the supply chain master item file? (3) What is the patient and team member safety record of this item? (4) Is the price fair? (5) Is it ‘green?’

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

Seek first-hand information about the industry before you make the job change. Healthcare is a very unique industry. It the only industry in which the consumer rarely pays the bill – the bill is usually paid by a third party payer or the government. It’s the only industry that is capitalism on the supply side and socialism is on the revenue side. A person interested in working in the healthcare industry is encouraged to do his/her homework.