Earning a seat at the table

Historically, Supply Chain has worked to push cost savings opportunities throughout our organizations. We have tried numerous approaches to engage clinicians, physicians and executives. We have wisely cloaked the cost savings efforts beneath strategic and tactical objectives, including quality improvement, evidence-based and clinical outcomes. However, the bottom line is frankly, the bottom line – meaning cost-saving goals.

We have been moderately effective in driving contract compliance and standardization but we have had minimal sustainable improvements or effect in utilization management. Over time I have seen diminishing attendance or involvement when a cost-savings initiative is being driven or pushed by Supply Chain. Even through a successful value analysis process the focus is often the addition or evaluation of new products or how much technology will “cost” the organization.

Today, we are seeing physician-led clinical and quality review councils evaluate existing science and other clinical information on medical device performance and make clinical recommendations based on the results. These teams comprise key physician leaders as well as administrators and other relevant members of the hospital team. Supply Chain needs to be a relevant member.

Look around your organization and learn about the relevant physician-led initiatives. These may be under the CMO or quality department. They might be lean- or Six Sigma-driven initiatives. The goal of the teams may be varied, and many of them may not initially understand their value — including Supply Chain.

We need to work to create a synergy with these clinical councils and be pulled into these groups. Start by finding a physician or clinical sponsor. Sell him or her on the value you can bring. Usually there are a few physicians that totally “get” the value of supply chain. Start with someone with whom you have already established a relationship. Or simply get an appointment on your CMO’s calendar and come prepared to sell him or her on your value and why you would like to be invited to attend council meetings. Slowly you will understand their agendas and then pick up momentum by coming with valuable information that you can share as appropriate.

We often hear that the existing council’s agendas are too full to include Supply Chain. Remember: We are not asking for a spot on the agenda. This is not about Supply Chain. It is a new way to become engaged. It is a new approach to garner trust and relationships that will eventually open new avenues and opportunities for Supply Chain to drive value. And yes, ultimately it is to help our organizations realize that Supply Chain is about more than contracting and the prices we pay for goods and services.

Supply Chain needs to be seen as a key provider of data upon which to make informed decisions. It is likely that your organization does not realize that Supply Chain is a key connector to the price being paid, the product being used and the actual utilization of technology across your organization. We need to become much more proficient at informing critical committees or councils that the information and relevant evidence that is available through Supply Chain can add significant benefit to a council’s process.

The same can hold true of existing clinical committees. Consider being pulled in to committees led by others vs. pushing others through Supply Chain-led meetings. Let’s face it, if Supply Chain is leading a committee everyone knows that it is about cost savings. If Supply Chain becomes a trusted seat at the table the input we can provide is data points upon which to make an informed decision that is not only right for the patient but also the organization. We need to utilize science, quality reporting, physician fact and independent, evidence-based studies to drive sourcing strategies that can lead to improved patient outcomes, reduced readmissions and lower costs for medical devices.

All it takes is a few success stories where Supply Chain provided very valuable information to help drive a decision for you to become pulled into more and more initiatives. I am not advocating that we abandon years of effort or the focus that Supply Chain has upon helping manage costs.

What I am saying is sit back and re-evaluate the return-on-investment of your current efforts. We need to be pulled into clinical councils where decisions are being made around bundled payment and value sharing models. We need to be invited to provide significant information upon which our organizations as a whole make informed decisions to carry us into the future of healthcare. I was at a conference recently and heard this, which I will leave as a closing thought: No Change = No Change. H