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Copyright © 2012

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

 
 

INSIDE THE CURRENT ISSUE

January 2012

Products & Services

New Technology

U.S. hit by record 12 weather disasters, costing $1 billion each in 2011

Hurricane Irene, tornadoes as well as flooding on the Missouri and Mississippi rivers contributed to a record of U.S. weather-related disasters costing at least $1 billion this year, according to the National Oceanic and Atmospheric Administration.

A total of 12 natural calamities killed 646 people and caused about $52 billion in damage, exceeding the previous all-time high of nine disasters in 2008, NOAA reported.

"We know the frequency of billion-dollar weather disasters is increasing since 1980," Tom Karl, director of the National Climatic Data Center, said by telephone. "Clearly a big factor this year was tornado outbreaks and severe local weather."

Six of the worst disasters, killing 548 and causing $19.7 billion in insured losses, came from tornadoes striking 23 states in April through June. Based on records back to 1910, there has been a rise in weather-related disasters since 1970.

Social and climate factors account for part of the increase, said Karl. The population has grown since 1980, people have a greater awareness about insuring their property and have more expensive possessions, all of which increase monetary damage figures, he said.

On the climate side, warmer global temperatures mean there is more water vapor in the air, which leads to higher rainfalls that cause more flooding, he said. It also means overnight minimum temperatures are higher exacerbating the impact of drought, wildfires and heat waves.

Wildfires in Texas, Arizona and New Mexico destroyed almost 3.7 million acres of land in the three states, killed five and threatened the Los Alamos National Laboratory. Drought and heat waves struck hard in at least six states and in Texas and Oklahoma are blamed with losses of $10 billion in crops, livestock and timber, according to NOAA.

Also making NOAA’s list of the costliest disasters was Hurricane Irene that struck in August killing at least 45 and causing more than $7.3 billion in damage in nine states, including New York and New Jersey.

A blizzard in Chicago caused $1 billion in insured losses and killed 36 while major floods on the Missouri and Souris rivers and on the Mississippi and Ohio rivers caused at least $4 billion in damage and killed 12.

There are fears that this year’s total billion disasters may not stop at 12 incidents. Officials are still adding up the damage from the Tropical Storm Lee and the pre-Halloween Northeast snowstorm, and so far each is at $750 million. (Bloomberg)

 

February 2012
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Conquering the chaos when disaster strikes

Recovery, rebuilding efforts test supply chain resolve and resilience

by Rick Dana Barlow

Photo courtesy Mercy’s St. John’s Regional Medical Center

Disasters can draw out the best and worst of people, as well as an organization’s operational effectiveness and efficiency.

Some healthcare product manufacturers and group purchasing organizations may equip and man high-tech, globe-spanning situation rooms deep within their campus bowels that would give British superspy James Bond and the multi-ethnic Mission: Impossible team members pause. (Editor’s Note: See January 2009 Healthcare Purchasing News cover story for an example.)

Hospitals, on the other hand, may usurp and retrofit a conference room with white boards and a cache of colored markers, using satellite and smart phones to fortify and link a virtual crisis management team to support front-line clinicians and behind-the-scenes administrators, including supply chain professionals.

Regardless of pedigree or position, clinicians and non-clinicians typically unite around a common cause when disaster strikes: Both groups become caregivers who fly in the face of danger.

Whether blizzards, severe thunderstorms, flooding, hurricanes, mudslides, tornados or a host of other weather-related or man-made calamities choke patient care delivery and supply chain operations, hospitals must be ready to react with the right people, strategies, tactics and technology to minimize disruption.

Some might lament that it’s easier said than done, particularly without painstakingly detailed planning.

But in the spring of 2011, two organizations 1,005 miles apart saw their disaster preparations tested to the max. Yet amid the harrowing destruction and devastation emerged hope, resilience and resolve – three key elements needed for recovery and rebuilding.

Mercy’s St. John’s Regional Medical Center before the tornado

Nearly nine months have passed since two crises nearly devastated two communities. In one, a thunderstorm originating in Canada caused the headwaters of the Souris River to swell and overflow its banks, swamping Minot, ND, with flood levels reaching 12 feet deep in spots. Farther south, a violent multi-vortex EF5 tornado swept through Joplin, MO, with 200 mile-per-hour winds. Both weather-related disasters wreaked havoc on those communities by either submerging houses, business buildings and healthcare facilities to their rooftops or by laying waste to them and leveling a landscape littered with debris.

Healthcare Purchasing News revisited with key supply chain executives at St. Alexius Medical Center and Mercy’s St. John’s Regional Medical Center, both of which felt weather’s fury back in last spring.

Flooding frustrations

Frank Kilzer

In Bismarck, ND, St. Alexius had to juggle the implementation speed of its disaster plans with proximity issues. Frank Kilzer, St. Alexius’ vice president of material and facility resources, his team and colleagues, faced the specter of flooding on several campuses within a short time frame that also were 110 miles apart.

The spring thaw first tested St. Alexius’ disaster planning mettle as Minot officials advised residents and businesses in the lower elevations along the Souris River to vacate to avoid projected flooding. St. Alexius’ Minot Clinic facilities were in the flood zone.

"Because of this pending threat we vacated our clinics and moved equipment and supplies into storage for several days until the flood threat subsided," Kilzer recalled.

Cooling temperatures, however, averted the alarm and within a week, the clinics once again were open and operational.

Roughly two weeks later, however, a Canadian rainstorm quickly overwhelmed the Souris River, which flows south from Saskatchewan into North Dakota, loops through Minot, and back north into Manitoba.

"We had less than 12 hours to remove as much as we possibly could before the water started rising," Kilzer said. "As the warning sirens were blowing our staff had to stop, and only a few items were left in the building." One of the casualties was an X-ray machine, too large to be moved in so short a time.

"Because this was a flood situation our immediate efforts were focused on salvaging equipment and supplies," he said. "To accomplish this we knew it would take more than our clinic staff, however most contract services were already at capacity dealing with the first flood that was projected. We called moving contractors and were able to get a commitment for two individuals and a truck. With these people, staff from our Minot clinic and staff sent from St. Alexius in Bismarck with a van and trailer were able to move almost everything in the two clinics."

Supply loss was minimal, Kilzer reported, save for those items mounted to walls, such as soap and towel dispensers. Similarly, equipment loss was limited to wall-mounted work stations, desks and "a few office chairs that didn’t get loaded before the sirens started blowing," as well as the X-ray machine. Total loss for the buildings, equipment, furniture and the rest amounted to approximately $1 million, he added.

Not only did St. Alexius have to deal with the flooding in Minot but also flooding in the Missouri River that affected its main campus in Bismarck and the Red River flooding that impacted facilities in Fargo. Because the flooding in Bismarck was projected to disable the local water treatment plant and sanitary sewer and storm sewer systems, St. Alexius had to establish strategies for water and sewer concerns beyond supply chain, according to Kilzer. Over in Fargo, St. Alexius had to work with suppliers to set up alternate delivery routes to avoid main roadways underwater.

Aside from supply chain and utilities, St. Alexius also had to manage patient care within the flooded areas, evacuating and relocating them, as well as those patients in the home care program receiving nursing care and home oxygen therapy.

Careful coordination

Kilzer credited his supply chain staff, facilities staff, administration, clinic leadership, clinic staff and physicians during the entire event as they vacated the buildings as the flood approached, then worked to re-establish a temporary clinic and develop long-term strategies to replace the facilities that were lost so that St. Alexius and Minot Clinic could continue serving Minot and the surrounding region.

For example, Derek Hanson, director of safety, security and emergency management, coordinated the facility’s response by implementing formal disaster plans honed through periodic drills involving city, county and state agencies, as well as other healthcare facilities where patients were to be transferred to receive appropriate levels of care.

"Patient care was the highest priority," Kilzer emphasized.

"It was important for us to re-establish clinic services because one of the clinics lost in the flood was used by independent specialty physicians [in our network] who were seeing patients referred to them by our primary care physicians," he said. "Until clinic space could be re-established with X-ray and lab capabilities they wouldn’t be able to see patients."     

Kilzer recognized "our clinic staff in Minot who were directly involved in tearing apart everything in one location and getting things relocated in the temporary location we are using today in the limited time they had, and be able to re-establish services in such a short time." The staff in Bismarck was instrumental in supporting their needs, he added, including Kurt Waldbillig, vice president of physician services, who aided physicians working in the temporary clinic.

"Although our supply chain staff was not directly involved in actually moving things from the clinics, they worked with our Minot Clinic staff to identify supplies and equipment that would be needed to provide care in whatever make-shift clinic arrangements could be re-established as quickly as possible and they continue to communicate with the Minot Clinic staff to assure whatever supplies needed are shipped from our central distribution center in Bismarck using local courier services or delivered by staff who travel to Minot each week," he said, crediting John Schreier, director of purchasing, for coordinating those efforts with staff and suppliers.

An unrelated but nonetheless fortuitous real estate transaction a few weeks before the flooding actually helped speed the process. St. Alexius had purchased a 42,000-square-foot building on 20 acres of land for a call-center operation. "Because the building had an ‘open beam’ type construction we planned to remodel it into space that would accommodate both our clinics," he said.

A local contractor worked with St. Alexius to reconstruct a temporary clinic in that building. "We developed an immediate plan for minor modification that would be needed, including such things as installing hand sanitizers, adding walls and doors where needed to maximize the space, creating an interim reception and waiting area, all within a few days of being vacated from flooded area," Kilzer said. "As the number of clinic visits has returned to original numbers this contractor has continued to work with us creating additional exam rooms, replacing the mammography room we lost and also replacing the X-ray room."

Another supplier assisted in equipping the temporary mammography and fully lead-lined X-ray room for Minot clinicians to communicate with Bismarck radiologists, he added.  

Kilzer currently is working with a team to design a new clinic and potentially break ground for construction sometime later this year.

Facing the funnel cloud

Mercy’s St. John’s Regional Medical Center after the tornado

Photos courtesy Mercy’s St. John’s Regional Medical Center

Originally, meteorologists had forecast tornado activity hitting Joplin north of Mercy’s St. John’s Regional Medical Center on that late Sunday afternoon May 22. That meant any funnel clouds likely would touch down in the neighborhood where Marilyn Endicott, St. John’s Regional’s administrative director of materials management, lived.

They miscalculated. Instead, the funnel cloud clocking in three-digit wind velocity hit the ground and tore through the hospital.

Because the storm hit when it did St. John’s Regional contained "essentially only acute services and corresponding patients and staff," according to Greg Meier, C.P.A., executive director, finance, St. Louis-based Resource Optimization & Innovation (ROi), the supply chain division for the hospital’s parent company Mercy. Fewer people on site meant fewer people directly were exposed to the flying debris whipped up by the storm’s wrath. But it also challenged the hospital to mobilize the off-duty, off-site staff members coming to grips with the destruction of their own homes and vehicles.

Within 45 seconds the tornado had snaked through town, reducing the hospital structure to a darkened husk of broken glass and twisted metal, a spectacle normally seen in war-torn combat zones. The wanton destruction extended into the surrounding neighborhood with collapsed houses and overturned cars littering landscaped yards and clogging streets. The storm also knocked out power in much of Joplin, as well as landline phones. Even cellular phone coverage was unreliable.

No matter.

Marilyn Endicott

On-site clinicians and administrators at St. John’s Regional, including a portion of Endicott’s team, activated their disaster preparedness process, launching what would be a dramatic 90-minute evacuation of 183 patients from the heavily damaged building and relocating them to pre-designated triage locations, including Memorial Hall three miles away and other hospitals across state lines. Mercy established a command center in Joplin’s Holiday Inn Convention Center to serve as a "rally/check-in point to account for co-workers and provide them with personal supplies they might need, such as food, water and clothing, according to Meier.

Meanwhile, off-site clinicians and administrators, including Endicott, checked on their families and homes before migrating to the facility. Many had to walk two to three miles after parking their cars because roadways were so cluttered with debris.

As the storm swelled over Joplin, roughly an hour before the tornado hit, Endicott already had contacted her staff from home to make sure they knew what to do should a "Condition Gray" occur. That included making sure flashlights were available in the event of a power outage and that an emergency cart [of supplies] were transported to the ER once called, she noted.

Right after the tornado passed through the hospital, Endicott received a cell phone call in her darkened basement from one of her co-workers that the hospital had been hit. Not realizing the extent of the damage to the hospital, Endicott relied on her nursing skills and disaster planning regimen. "I started thinking about what was needed to care for trauma patients," she recalled.

With working phones at either ear, Endicott contacted a colleague at another Mercy hospital across the border in Kansas [Mercy Hospital, Fort Scott] to send whatever clinical packs she could spare, as well as called ROi’s emergency number. Monitoring media reports roughly 275 miles away, the team at ROi returned her call promptly, asking what they needed to deliver as Mercy mobilized system-wide.

"Greg Goddard, ROi’s director of operations at the time, and I decided that they should replicate the last order they had on record," Endicott said. Mercy operates an integrated supply chain for its member facilities so ROi co-workers at the Springfield, MO, consolidated service center roughly 75 miles away, identified necessary supplies and loaded the first wave of trucks to be dispatched that first night, according to Meier.

In fact, Mercy and ROi would provide trucks several times a day for the next few days to shuttle supplies around as needed, he added. Mercy Hospital in Springfield became a command center for managing off-site instrument sterilization and preparing hot meals for clinicians and workers.

Because of the damage and destruction in Joplin, however, the typical one-hour commute between Springfield and Joplin more than tripled in duration.

Picking up the pieces

After recruiting as many of her off-site co-workers who volunteered to come in, Endicott and her husband then made their way to the hospital, the last mile-and-a-half on foot. "For several miles all around the hospital you could see everything, particularly the hospital," she said. "Before the storm you could only see a part of the hospital due to trees and houses and other buildings."

When Endicott arrived at St. John’s Regional she found co-workers from her department and others "pulling what supplies and equipment they could from the department that were still safe and useable," she said. "It was organized chaos. People were helping wherever they could." She learned her colleagues had been evacuating patients before they moved to salvageable equipment and supplies and joined them.

"We would put as much as we could on rolling carts," Endicott told HPN. "We had to navigate through the halls and outside as best we could because there was debris and water everywhere and [power] lines were down. We took all the supplies – including gurneys we rescued – across the street to a tent area set up by the fire department where the ER had set up for triage.

"We were working as fast as we could because we didn’t know if the [hospital] structure was safe," she added. "We heard and saw falling glass everywhere."

By about 10:30 p.m. that night they had stripped the hospital of everything they could, just as the first truck full of supplies from ROi arrived at the hospital site and then went to Memorial Hall as the pre-designated triage facility serving as the central temporary replacement care center, along with another truck a few hours later.

With the arrival of supplies from ROi and other Mercy facilities, Endicott and her team faced another hurdle – where to put everything.

Scott Nelson

"Once trucks showed up at Memorial Hall with supplies we had to do something with them," noted Scott Nelson, ROi’s vice president, unified supply chain. "We had no automated system for managing the supplies, so folks had to be creative."

Memorial Hall houses a large basketball court so Endicott and her team tried to recreate a makeshift storeroom on tables and carts around the patient care areas and on the stage.

"Trucks would come in and people would bring the supplies to the staging area," Endicott said. "SPD co-workers would categorize supplies by product type, and make the rounds. We didn’t know what we had or what we would need but we did the best we could with what was available to us.

"With our electronic systems down we resorted to manual inventory tracking, pen-and-paper record-keeping," she continued. "Even doing it manually I cannot think of one time where we needed something and it wasn’t there. Transportation was key. Box trucks and vans from ROi just started appearing. We didn’t know what we needed early on but suddenly they were there. The team at ROi anticipated our needs based on the clinical specialties we offered."

Greg Meier

What seemed like magic on one end required considerable orchestration at the ROi command center. With cell phones and satellite phones and "a lot of text messaging," JoAnne Levy, ROi’s vice president, integrated sourcing solutions, and Meier, demonstrated their organization’s clinical integration with the supply chain, despite signal interruptions and intermittent coverage.

"We either had to clean, sterilize and repair products or we had to source from our existing vendors," Levy indicated. "In some instances we had to source products that weren’t normally part of our portfolio. For example, we sourced electronic road signs to help Mercy communicate with Joplin co-workers.

"We were able to turn to R.N.s and pharmacists on the ROi supply chain team as well as clinicians and experts within Mercy for their evaluations," Levy noted. "This was a team effort that incorporated a tremendous amount of expertise and collaboration."

JoAnne Levy

Levy and Meier also mobilized supply chain managers at other Mercy member facilities to develop recovery and rebuilding plans for that first week following the tornado and beyond, according to Meier. "Getting information passed out to everyone was a key issue to make all of this work. The logistics didn’t just involve products but information, too. We had plans ready on Monday afternoon in time for a full-blown call on Tuesday for moving forward," he added.

"During that whole first week after the tornado hit we had to move trucks back and forth between the hospital site, Memorial Hall and the Holiday Inn Convention Center where Mercy had set up its command center," Nelson noted. "Our clinicians and co-workers also had to work within curfews established by local authorities for the city."

Missouri’s Disaster Medical Action Team (DMAT), which provided extra clinicians to help, led twice daily scheduled briefings from Mercy’s command center, outlining very regimented priorities, according to Nelson. "The first meeting would go over the priorities; the second call would look back at what we accomplished," he said.

The priorities were simple enough, according to Endicott. "We focused on caring for the patients and clinicians first and then set up mobile supply carts and storage areas for clinicians to provide care," she added.

Earned stripes
from disaster recovery efforts

Climate-related disasters can leave a healthcare facility reeling, particularly because it may have to recover and rebuild without interrupting the patient-care services it provides.

For two organizations weathering violent storms last year, the complexities of reacting to a disaster were broad and deep.

"Any disaster requires a team effort," said Frank Kilzer, vice president of material and facility resources, St. Alexius Medical Center, Bismarck, ND. "Formal coordination and communication among all is essential and this must include the providers who are at the front line caring for people who need healthcare services during the disaster. It is also important to give consideration not only to those who come to the clinic but also patients in their homes who receive home healthcare services, making sure they have medical supplies, back-up oxygen and oxygen support systems in the event of power failure or for extended times while services are being re-established."

Greg Meier, C.P.A., executive director, finance, Resource Optimization and Innovation (ROi), the supply chain division of St. Louis-based Mercy, echoed Kilzer’s comments on the immensity of a disaster response must surpass the immensity of the disaster itself. Tornado-stricken St. John’s Regional Medical Center, Joplin, MO, is a member of Mercy.

"The resources needed to accomplish this are incredible," Meier said. "We are blessed within Mercy and ROi to have an integrated supply chain which allowed us to immediately marshal and dedicate the resources needed to make this happen.

"We learned it takes everyone working together in a collaborative manner and that it truly takes a team of leaders that trust each other to make decisions to pull it off," Meier continued. "Our local supply chain leader in Joplin, Marilyn Endicott, and her team did an unbelievable job focusing on the minute-to-minute. We were able to supplement her with materials management from other communities to give her a break. We then had a team of three executives that co-led the Mercy/ROi supply chain response with an army of folks behind them."

But it’s not enough to recognize the complexity.

"Ultimately we learned we had to eliminate the complexity of our processes in order to be creative, efficient and figure out just how to get it done so that the physicians, clinicians and staff could deliver the compassionate care our patients deserved," he added.

Once the tornado’s immediate aftershocks ebbed, Mercy, ROi and St. John’s reflected on the lessons they learned.

"We learned a tremendous amount about disaster planning through this process," Meier acknowledged. "First, you need to turn the disaster planning process on its head. We typically make all sorts of assumptions when developing the plans. We found that a proper disaster plan should make no assumptions.

"For instance, you need to plan as if:

1. "You have no facility – as we learned, this can happen.

2. "You have no staff – what if they can’t get there and/or the existing staff is incapacitated?

3. "You have no communications methods other than word of mouth – this essentially was where we were at immediately after the storm.

4. "You have no supplies – they are destroyed or damaged.

5. "You have no community support – it is destroyed but thankfully the Joplin community responded."

Meier quoted a colleague’s sage-like belief that it isn’t over even if it seems to be over.

"If your disaster plans are developed and you think you will succeed, you may not have thought the plan through far enough," he added. "Dottie Bringle, COO/CNO at St. John’s Joplin says, ‘Keep planning for disasters until you see you fail. Then your plan may actually be close.’"

Tech on target

Despite the lack of power in Joplin, Nelson emphasized the importance and benefits of technology. "Mercy utilizes a system-wide electronic health record, effectively linking all our hospitals, physician offices and clinics together with a single record for each patient," he said. "[Mercy St. John’s] Joplin had just gone live with the system a couple of weeks earlier. With the EHR we had a virtual record to utilize; we were able to pull records and get patients on the proper regimen to continue their care. Paper records had been strewn all over, some as far as 100 miles away.

"Through our automated supply chain system, we were able to rebuild inventory and track patient supply needs by pulling the most recent electronic requisitions," he continued. "This just illustrates the value of technology in quickly restoring operations as absolutely critical."

Levy pointed out that the hospital wasn’t the only building destroyed by the tornado. Clinics and physician offices were damaged or destroyed, too, she added, and ROi supported them as they resumed operations.

That included Endicott’s team, too. "As we got Memorial Hall up and running as a care center, as well as tents on-site serving as temporary care facilities we also worked with clinics around town to get them operational," she said. "One advantage for us is that we’re on a perpetual inventory system in the OR, cath lab, GI lab, etc. How would we have identified what we would have lost if we didn’t have that?"

Meier reported that Mercy recorded a $16.1 million impairment loss for buildings and equipment and another $6 million impairment loss for inventory.

Mercy and ROi also secured off-site warehouse space needed to house supplies and clinical engineering staff to evaluate and certify equipment, according to Nelson, as well as additional truck trailers for distribution and delivery.

Donations continue to arrive from suppliers, potential suppliers and other organizations within and outside of Mercy, according to Levy. As a result, they developed a process to manage the donations and track everything in a database, Meier noted, assuring that all of it will be used in the community as Mercy rebuilds in Joplin.

Further, Meier and Endicott lauded the residents of Joplin who rallied around the hospital and helped evacuate patients with the flatbeds of pick-up trucks serving as makeshift ambulances. "The people of Joplin were an inspiration to us in the way they helped out," Meier said. "They didn’t act as victims but as people who were blessed despite what happened around them."

In the aftermath of the storm, Mercy replaced the mobile medical tent hospital and physician clinics with modular units, meaning ROi assisted Endicott’s team in maintaining the supply chain for the tents while also planning for the modular units, transferring equipment and supplies and decommissioning unneeded items, Meier noted.

Currently, Mercy is constructing a new 29,000-square-foot pre-cast concrete building to replace the mobile medical unit scheduled to open in the spring that will remain in operation until 2014 when the new hospital in Joplin should be completed.

Until then, they’re moving forward. "We’ve learned to adapt to a smaller on-site inventory and maintain a separate warehouse nearby that is used to supplement the on-site storage," he added. "Thanks to the combination of team creativity, technology and tenacity, we are running pretty well right now."