How can Supply Chain improve its reputation and status among capital/facilities planning groups without C-suite or vendor intervention so that it is invited to participate early enough in the process to make a difference for the healthcare organization? Six experts share their insights.
“I think Supply Chain needs to communicate better with capital/facilities, listen and come up with some common savings goals based on all the costs associated with outfitting a new or remodeled space. When the goal is to open on time and on budget, there are many factors that play into this and understanding and acknowledging these factors is key. Meeting regularly and allowing capital/facilities planning to speak to their issues and costs would help also.”
Cindy Juhas, Chief Strategy Officer, CME Corp., Warwick, RI
“Talk about a challenge! C-suite support is essential, critical, important, necessary, etc… get the picture? Supply Chain is a value-add to most organizations, if it’s allowed to carry that out. While they may not generate revenue, they are part of the equation that allows others to do so. That is important and requires C-suite support to communicate the message. Healthcare is in a constant state of transformation. Having Supply Chain at the table can help negotiate the transformation by bringing all the right parties to sit beside suppliers to help guide the direction of the transformation. Granted, not everyone will want to hear that! Oftentimes we encounter the proverbial ‘brick wall,’ as in, ‘this is the way I want it and there’s no changing it.’ With C-suite support, barriers can be removed, sometimes with little to no pain. At the end of the day, it takes a team effort to achieve and sustain success. The team can/may include supplier support, especially when they have available resources that can inform and help an organization transform to meet the constant changing needs in healthcare not just today, but the future.
“Unfortunately, there is no ‘magic’ pill that controls when and how (much) Supply Chain gets involved in planning. Each organization and each situation dictates the how, when and why that should happen. Supply Chain has to be flexible and adapt to changing situations, but they can’t be bashful. In the end, the perfect, but simple, equation should read something like this: Supply Chain + Opportunities =
Success.”
Ric Goodhue, CMRP, Equipment Planner and Capital Coordinator, CaroMont Health, Gastonia, NC
“Our most successful clients have adopted high-functioning value analysis committees (VACs). By breaking down silos with a VAC, supply chain managers, purchasing, clinical staff, and other associated stakeholders can ensure that requirements by multiple departments are met. Many customers actually take a step further by adopting a VAC and institutionalizing their request process within Attainia’s software. This evolution centralizes all requests and provides insight into capital request data across multiple years.”
Mike Rozenfeld, CEO, Attainia Inc., Scottsdale, AZ
“Know your facility, how it is being utilized, and how does the leadership plan to use it in the future. Does your facility have a long-term growth plan? Even a three-year plan is better than nothing. Gathering information on every asset in your facility will allow you to see potential issues before they even happen. Is the OR adding surgeons? How will this impact Central Sterile? Will they need more equipment? Will it tax the equipment they have now? Are the users in the various departments happy with the equipment? Having an up-to-date read on user preference can expedite the vendor selection process when something does go wrong and needs to be replaced fast.”
Steven Sutton, Director, Planning and Design Group, Belimed Inc., North Charleston, SC
“A prime area of opportunity for Supply Chain is in working with tools and data to create a process for a comprehensive, strategic plan to organize and monitor existing assets and inventory. Creating a dashboard with install date, historical/industry estimates of average life expectancy, annual procedural volume, and service history would provide a powerful foundation to strategically track and plan for technology replacement or addition in a proactive rather than reactive manner. The volume data could identify assets no longer in use and relegated to the corner or proverbial hospital basement. This can be an untapped source of revenue via sale on the secondary market to refurbishment companies or, in some cases, to other healthcare providers.
“Supply Chain within the capital workflow as the ‘quarterback’ of the team can advance discussions on options for capital acquisition: Purchasing new versus pre-owned certified versus lightly used, lease or rental, or consumable agreements could open up financially beneficial options. Many of these would not be feasible if brought up for consideration too late in the capital process. This process would offer an ecosystem of open, honest discussion on capital strategy. It would provide insight and management well before an emotional process that often drives capital decisions.
“With organizations moving rapidly to value-based medicine and reimbursement, maximizing the right technology with the right solutions for procedures is critical. This should include unbiased, proven, evidence-based data, which is critical in tomorrow’s strategic management of capital and healthcare delivery. The equipment should be purchased with the right vendor and model configuration and at the right price. These factors will play an even larger role in the overall business strategy of the organization and have a significant impact on delivering a successful bottom line, while providing efficient, cost-effective, and appropriate care. A process involving supply chain in a well-organized, connected capital and financial strategic team allows for a better-informed, strategic decision process that will serve the organization’s business goals and the ultimate stakeholder, the patient.”
Tom Watson, Vice President, Clinical Strategies, MD Buyline/TractManager Inc., Dallas
“Greater alignment with the Capital/Construction/Facilities team is the key to improvement with all stakeholders. Many times, Construction/Facilities individuals perceive that Supply Chain professionals don’t understand their needs or the complexity of how their operations work, especially when it comes to new construction. However, we know that Supply Chain can have significant impact on capital purchasing, construction, and facility operations and should work to make their ability to drive savings better known with stakeholders. In organizations where there hasn’t been the best alignment between those functions, Supply Chain professionals need to take measured steps for greater collaboration. Start by identifying a few projects or areas to work on jointly that can serve to build or enhance those relationships.”
Mark Webb, Principal, Vizient Inc., Irving, TX
