Intalere Member Best Practice Spotlight-Parkview Health-Supply Chain Takes on Construction RFP and Bid Management

ISSUE

A major lesson learned from Parkview Health System’s rapid growth expansion over the past several years was that there were gaps in transparency of construction bids, contractual requirements and invoice review with which Supply Chain could have assisted.

SOLUTION

Teams were assembled to conduct a gap analysis and develop process improvements for construction acquisition and contracting. Internal auditing uncovered critical gaps in processes when it came to choosing contractors and evaluating invoices. This audit led to the development of a Construction Concept to Implementation Flow Chart that helped the team understand the current process in detail. Supply Chain inserted steps and processes into the flow chart based on current policy and the gaps identified by the teams involved in the review.

OUTCOME

The process changes implemented will result in cost savings (as identified in the audit) as well as a perception of transparency in the bid processes. Contractual improvements will result in more clarity in billing of when and how much should be paid. Success is measured by adherence to the newly prescribed processes including a formal vendor certification process, identifying standard contract templates and addendums, recording events that identify errors in invoicing, and savings that occur due to the reductions.

ABOUT PARKVIEW HEALTH

Parkview Health is a not-for-profit, community-based health system serving a northeast Indiana and northwest Ohio population of more than 820,000. With more than 10,000 employees, it’s the region’s largest employer. Its mission is to improve patient health and inspire patients to take steps to improve their own well-being. Parkview Health has been serving these communities since its early beginnings as Fort Wayne City Hospital in 1878.

Check out the Parkview Health page in the 2017 Intalere Best Practices Compendium.

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