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Finding the appropriate decision-maker for capital projects takes some effort

You have no problem connecting with a professional in materials management, but may not be able to interact with the stakeholder who would most benefit from your proposal. In many cases this is an administrator or possibly someone in the C-suite. So the challenge becomes how do you access the best person possible to understand your multifaceted capital proposal?

Last fall, I had the privilege of moderating a capital panel at the fall IDN Summit in Dallas and was honored to be joined by two leading capital supply chain experts, Deborah Rey, CMRP, senior contract manager for capital equipment and construction, Christiana Care Health System, and John Sdanowich, capital administrator, John Hopkins Health System.

Our session was part of the IDN Summit’s supplier IDN Sales & Marketing Education Track: "Understanding the Unique Aspects of Capital Equipment Contracting with IDNs and Health Systems."

The premise was that contracting for capital equipment has unique challenges, and to be successful suppliers must understand the influence that both clinical and financial stakeholders have on the process. Understanding the strategic goals of the IDN or health system is critical to formulating a plan to approach the provider with a comprehensive capital equipment proposal. The session focused on how to be successful with the multi-level IDN customer base, how the supplier must understand more than just the transactional goal and be able to present the proposal to the multi-level IDN customer base.

The bad news is that after you have done your homework and developed your best case proposal, where do you go? Who can you access who speaks and understands capital?

The good news is that at Christiania it’s Deborah Rey and at Johns Hopkins it’s John Sdanowich. What I heard from them was that they and their institutions have not only identified the need to address capital but can help guide suppliers through their capital supply chain process.

These two supply chain professionals have the ability to understand and clearly communicate their institution’s capital objectives to the supplier. They also have the ability to define how a supplier’s proposal addresses their IDN’s strategic objective, relate it to the proposal and manage the process with appropriate stakeholders.

Rey discussed how Christiana identified opportunities in their capital process, defined strategies and developed lessons learned. Here are some highlights:

• Lack of purchasing involvement when need for capital equipment was first identified

• Key individuals often missing from acquisition team

• Develop a "Collaborative Approach to Capital/Product Acquisition Pamphlet"

• Schedule face-to-face meeting with department directors, senior-level management, key physician committees and others to introduce new process

• Educate all on the "Best in Class" Basic Business Practices for the Non-Purchasing Professional (a k a the Do’s and Don’t’s)

• Educate suppliers on proper protocols for selling their technology and submitting proposals

• Smarter buying decisions can be made when all appropriate team members are involved and expertise utilized

• Greater cost savings can be achieved and utilized for unplanned emergency capital requests or reinvested for future expenditures

• Enhanced relationships with department directors, physicians and suppliers

• Cohesive teams all the way around

At Johns Hopkins, Sdanowich focused on how their "Capital Group" functions and how they have involved decision makers at all levels to achieve success. Sdanowich presented:

• Analyze capital requests using return-on-investment (ROI), operational impact and strategic impact to maximize return

• Link business strategy to capital decisions

• One central system to capture all data relevant to capital planning

• Automate and ensure collaboration, coordination and analysis of plans

• Review results

• Notify before variances hit!

• Senior Management (ceo, cfo, coo)

• Operations & Administration

• Clinical Departments

This type of proactive, professional approach to capital is not only refreshing, but it is critical if both the suppliers and providers are to achieve their capital goals.

If you are a capital supplier you must find the "Deborah and John" in your targeted IDN. You should request access to the materials management capital expert as well as access to any and all clinical and financial stakeholders affected by the proposal. As Rey stated, "Smarter buying decisions can be made when all appropriate team members are involved and expertise utilized."

If you have the wrong person or cannot speak to a clinical or financial expert you will greatly reduce your chances of success, or to quote Sdanowich: "The game plan has changed: You must focus at all levels!"