Tag Archives: supply chain

Ensuring the Resilience of Your Supply Chain – Team, Strategy and Tools – Part 2

Excerpts from a Conversation with Intalere Senior Advisory Specialist, Tracey Chadwell

In our previous post, we introduced the concept of supply chain resiliency, and shared insight on building your team and several strategies you can undertake as you move through the process.

Now that we’ve got the team and we’ve got some of the strategy in place, what are some of the tools that are most important to implement to help you get ahead of the curve? What are some of the things that you can do in utilizing opportunities through the various partners on your stakeholder team?

It’s very important to build relationships with local, national and non-traditional suppliers. Obviously, suppliers can provide you access to products, but as we learned during COVID, having a variety of resources is important.

We were going places like Home Depot, which is not traditionally thought of as a supplier for medical supplies, but they were able to provide things like N95 masks and other types of protective equipment. To keep those relationships very, very vital, you need some pre-planning to develop needs-based allocation strategies to ensure access to your supplies.

This can be done through the suppliers directly, especially the local suppliers, but it also needs to be done through your distributors who can also assist with identifying alternative products, strategic sourcing and risk share models, as well as storage of products and inventory management. Some of them offer an opportunity to serve as your warehouse or your storage area and will bring the supplies to you on a regular basis so that you don’t have to allocate that extra space normally required for inventory. Speak with them about possible opportunities to see how they can assist.

Suppliers/Distributors will sometimes initiate allocations to prevent excessive ordering and to promote the availability of needed products to other healthcare providers. We saw some of this happening during the pandemic, where it may benefit specific facilities, but it also hurt others down the line with not having product availability. That’s something we need to work with our distributors on proactively, so that we have our products, but our neighboring facilities have their products as well.

Your GPO can be an incredible resource in that they can help determine reliable sourcing methods, purchasing partnerships, etc. Many GPOs are now looking at onshore/nearshore sourcing, diversifying sourcing and product substitutions, so that we’re not in a position again where we are not able to get products because of where they were made. They are looking at non-traditional suppliers and vetting them to ensure providers are not taken advantage of.

Another area that’s incredibly important is that transparency is the name of the game along the entire supply chain. We need tools that are going to help put data together and provide actionable information and provide transparency.

Some larger organizations are implementing ERP or enterprise resource planning, a cloud-based solution that basically allows you to find the product from when it hits your door to when it’s actually being used on the patient. With that, you have the visibility to utilization and inventory levels, and can see where it’s being used, how it contributes to cost of care and how it actually flows through your financial software.

We’re seeing a lot of system integration and interfaces come up. That allows for data flow between different systems so that you can put the big picture together and see what’s going on with your inventory systems, your staffing models, your patient information and more.

Item master cleanup is incredibly important because if you’re not using accurate data, the decisions you make based on that data are often flawed. There are services that provide item master cleanup and maintenance that are worthwhile in resolving this issue.

For smaller facilities, we’re seeing a lot of solutions coming out that are procure-to-pay. From ordering all the way through finance, it’s a chance to integrate what’s going on. Many of these solutions can be scaled down to fit smaller institutions. It basically makes it almost like an Amazon-type setting. You can put your ordering in and it helps with your three-way reconciliation, you can do inventory management and you can do charging from it with barcodes. And again, this would all feed into the financial software.

Finally, there are stand-alone inventory management systems so that you can see what’s there, how much you’ve got on stack and what they have on the units. Again, all of these systems help you in knowing what’s there, knowing what the availability and usage is, and can really help you do some predictive analytics and determine what needs to be ordered when, how much to keep in stock, develop your par levels, etc.

To go one step further in looking at workflow efficiencies, we also have robotic process automation (RPA). Basically, any repetitive process can be set up so that it is done by a software “robot,” freeing you up to spend more time for example with enhancing your revenue by addressing accounts payable, versus making repeated calls to insurance companies for refiling or for pre-authorizations.

That’s another area we’re seeing more and more because in going virtual, a lot of things fell by the wayside due to the fact we didn’t have processes in place for them. Having these types of solutions in place now makes us much more viable and sustainable. If something like that should happen again, and you can continue these processes, continue generating revenue, continue communicating with patients and insurers, you don’t have to fall behind or play catch up when you get back to the office.

These are just some of the best practices that can be helpful to anyone depending on where they are in their level of supply chain maturity.  

Something that really came out during the pandemic is just making sure that you’re prepared and you’re proactive in working with those other sourcing alternatives. Whether it be reuse or other alternative systems, they all work together to make sure that you don’t have a drop in service or you’re still able to ensure that you’re taking care of patients and customers at the high levels they have become accustomed to from your organization.

We Can Help

For further information on any of our resources to help you deal with your supply chain challenges, visit our website at intalere.com. You can review our recent Supply Chain Resiliency podcast and infographic, as well as success stories and recent blog posts on a wide variety of supply chain topics.

Ensuring the Resilience of Your Supply Chain – Team, Strategy and Tools – Part 1

Ensure the Resiliency of Your Supply Chain

Excerpts from a Conversation with Intalere Senior Advisory Specialist, Tracey Chadwell

Supply chain resiliency is a term and phrase that has really gained traction over the past several months as we deal with the fallout of the pandemic and seek to apply some lessons and best practices so we can avoid making the same mistakes in the future.

While the pandemic showed the importance of the supply chain, it also served in some ways to spotlight its weak links. In order to make the healthcare supply chain more resilient, we need to identify several components that are vital to its success.

In building a resilient supply chain, we need to focus on building a cross-functional team, implementing the correct strategies and utilizing the tools that can make the supply chain more efficient and effective.

First, let’s look at some of the key team members and what their roles are.

When you look at the supply chain and its function, it’s a vital part of the entire team at the hospital to achieve the quadruple aim of improving the patient care experience, the health of a population, the clinical experience and reducing per capita healthcare costs. For that reason, we need to make sure that we in supply chain develop a winning team with some good strategies and some good tools to help do that.

When we look at the team itself, we need to make sure that we’ve got all the stakeholders involved including leadership, clinicians, finance, suppliers, distributors and group purchasing organizations (GPOs). Once the team is identified, you need to develop a game plan. What are some of those most critical winning strategies to enhancing your supply chain once the team is in place?

The most important part is identifying your areas of vulnerability. COVID gave us an opportunity to actually see some of those areas and identify them pretty quickly. But we really need to do a deeper dive and explore the areas that might put us in a vulnerable situation, and then develop strategies as far as preserving supplies, and preventing over ordering and hoarding of limited resources.

You want to look at your current inventory practices. Many facilities went to just-in-time (JIT) inventories to avoid having bulk storage. And yet this could have caused them a problem with the allocations during the pandemic. That may be something that needs to be re-evaluated.

Another strategy is to review a list of must-have supplies and develop a hierarchy of clinically approved substitutions. That’s why having clinicians on your team is so incredibly important. You may find products that you think would be viable substitutions, but they really need to be clinically approved to ensure they meet the requirements of the end users.

You also want to build in redundancies. Source like items from several sources and build relationships with vendors that are manufacturing in different countries or non-traditional local suppliers. Many of us have had an opportunity to develop some relationships with local suppliers, and those need to be continued because they may be able to provide you with an allocation in an emergency so that you would have priority in obtaining needed supplies.

Another area that people have been investigating is the use of disposable versus reusable versus reprocessing. There may be an opportunity for you to lower the inventory that you carry by utilizing reusable products or by reprocessing. Additional investigation may be required as you’re going to need to have laundry services or some way to reprocess or reuse the product.

Demand signaling is another strategy in which you have visibility to the availability, consumption and utilization of critical supplies. What this all boils down to is having access to, and knowing how to use data to predict potential waves of cases. Demand signaling involves understanding your current supply levels or inventory, the burn rate of how it’s being used and the sourcing challenges.

Predictive forecasting models that are based on clinical surveillance through the EHR and supply chain data can be useful in helping to do this, especially if we go beyond COVID. There are opportunities to identify swings, upticks of certain illnesses, diseases or even surgery cases at certain times of the year, and use that data to do some predictive forecasting about what supplies will be needed to ensure that you have inventory to care for your patients.

In our next post, we’ll review some important tools to implement to help you get ahead of the curve.

We Can Help

For further information on any of our resources to help you deal with your supply chain challenges, visit our website at intalere.com. You can review our recent Supply Chain Resiliency podcast and infographic, as well as success stories and recent blog posts on a wide variety of supply chain topics.

9 Reasons for Inefficiencies in Supply Management

by Tracey Chadwell, Senior Director, Advisory Solutions, Intalere

In recent blog posts, we discussed the idea of supply utilization management and building a sustainable process to identify gaps in supply chain strategies and create new behaviors that bring savings to your healthcare facility’s bottom line.

One area of particular scrutiny is waste in the supply chain. Waste and inefficiencies in the consumption of products is where 79% of all new supply chain savings are hidden. That includes things like inferior products, value mismatches and misused, misapplied, or misappropriated products, which must be identified and eliminated.

In some cases, supply chain can evaluate, select and contract for a product/service/technology, but hospital staff use too many, use wrong products, choose feature-rich products, waste products, or vendors upsell new, higher cost products inside the new contract. That is why a cross-functional team with representation from supply chain, finance, operations and clinical segments, along with a process that includes checks and balances, is so important.

Furthermore, redundancies in supplies and unnecessary deviations in inventory processes lead to variations in practice, many times sacrificing clinical and operational excellence for personal preference or comfort.

What are some of the main reasons for waste in the supply chain that we need to guard against?

  1. Tradition – Products, services and technology need to be reviewed regularly to ensure relevancy beyond the old adage of, “this is what we’ve always used and it’s been fine.”
  2. Poor or inaccurate performance specifications – Most items are purchased from manufacturer-supplied data, not based on required performance expectations, and, therefore, are either over- or under-performing, resulting in waste and inefficiency.
  3. Wasteful and inefficient practices – Excess inventory, discards, redundant motion, unnecessary practice variation, irrational consumption.
  4. Old technologies – Some products may be inefficient or need maintenance to keep operational. It’s important to evaluate “useful” life to ensure these products are still meeting needs.
  5. New technologies – Conversely, new products and tech purported to be faster, better, cheaper may be less reliable, more supply intense and, thus, more costly.
  6. Lack of accountability – No one “owns” the value chain to oversee the life and cost of an item used by numerous departments.
  7. Lack of input from key stakeholders – Customers aren’t consulted prior to product or service decisions, so inappropriate use or changes occur. Comprehensive stakeholder involvement helps identify flawed thinking or assumptions so better decisions can be made.
  8. Feature-Rich Products – Value mismatches provide more than what is functionally required. For example, pacemakers with over 100 features that cost 50% more, when only 10-15% of its features are medically indicated.
  9. Standardization vs. Customization – It’s rare that one product is able to meet all requirements of all users without incurring waste, inefficiency and a higher cost than necessary. Customization, or building products according to individual specs, will meet the requirements of approximately 80% of the users. The other 20% require higher or lower specs to fit their needs, which may mean buying different products for them. Doing so may actually reduce waste and inefficiency by 10-15%, thus lowering overall costs.

Identifying and understanding these possible hurdles and how best to make critical adaptations, create new behaviors, and revise policies and procedures to mitigate them, is an important part of bringing sustainable savings and a strategic supply chain to your organization.

We Can Help. Intalere helps you better understand the strategic nature of supply chain and provides resources that can assist in bringing efficiency and savings to every area of your supply chain. Reach out to see how we can help. Contact Customer Service at 877-711-5600 or customerservice@intalere.com  or your Intalere representative.

Supply Utilization Management (SUM) – Part 2: What it Takes to Achieve Improvement

Peter Cayan

By Peter Cayan, Vice President, and Tracey Chadwell, Senior Director, Advisory Solutions

In part one of our supply utilization management discussion, we began by defining the concept of supply utilization management and explained how so many aspects beyond initial price affect your true cost. In this post, we’ll review how you can build a culture to achieve sustained improvement in support of the quadruple aim of improving patient outcomes, improving patient experience, improving care team experience and lowering the overall cost of care.

An Intalere member at a regional medical center in the western U.S. uses an analogy to explain how to achieve “improvement” to his staff by using the sport of throwing darts. This sport requires practice and dedication, and the more you focus on throwing at the bullseye, the tighter the group will be over time. You might not ever get all the darts in the little red dot, but it will be pretty close.

This, generally, is the goal of any process improvement program – get everyone in the organization to throw those darts (products and services) as close to the bullseye as possible. Hence, maximizing the pursuit of “the aim.”

Utilization management is your bullseye and theoretically your darts could represent any of the products and services that exist within the organization. The end-state goal should define what it is the team wants to achieve. If the team is not involved in formulating the target plan, and goal, buy-in will be hard to achieve.

A key element of getting to “yes” here is the critical requirement of having a defined, transparent and measurable decision-making process. Without this key fundamental team process, all bets are off for hitting the bullseye. It takes the whole organization to make this happen. You want to stack the opportunities and build a standard for identifying prospective wins and tracking progress throughout the organization.

You must develop a function-oriented, systematic team approach for providing, designing or investigating the right functions (primary, secondary and aesthetic) for the products, services and technologies that are required to operate a healthcare organization. Your process should be one which:

  • Takes product/service/technology evaluation and management of supply expense from subjective to objective.
  • Uses a formal, customized and collaborative process.
  • Is data driven (related to clinical efficacy, safety, quality).
  • Is supported by clinical documentation and an evidence-based approach.
  • Determines true requirements/function/purpose.
  • Benchmarks against best practice.
  • Promotes the standardization of products that are clinically efficacious and provide the highest quality care, customer satisfaction and safety to patients in the most cost-effective manner.

Ultimately this builds a long-range planning process that identifies gaps in supply strategies and is successful in creating new behaviors that allow for adaptation, evolving policies and procedures that tackle hurdles threatening success and ultimately yield savings that are real and achievable.

We Can Help. Intalere helps you better understand the strategic nature of supply chain and provides resources that can assist in bringing efficiency and savings to every area of your supply chain. Reach out to see how we can help. Contact Customer Service at 877-711-5600 or customerservice@intalere.com or your Intalere representative.

Supply Utilization Management (SUM) – Part One: The Untapped Well

Peter Cayan and Tracey Chadwell, Intalere leaders

By Peter Cayan, Vice President and Tracey Chadwell, Senior Director, Advisory Solutions

While controlling cost and reducing variation will always be mission-critical functions to any and all supply chain managers, these tip-of-the-iceberg savings represent only about 37% of the total lifecycle cost of supply purchases. The preponderance of your product, service and technology life cycle costs, or 63%, is in your deployment and utilization, or how your commodities are employed by staff in your healthcare organization. 

Total lifecycle management has a beginning, middle and end. At the beginning, there is your value analysis process (i.e. deciding on best value); the middle is your utilization management system (i.e. controlling when and how the product is used) and at the end of the lifecycle you need to economically and ecologically dispose of the product.

While most hospitals, IDNs and other healthcare providers have focused on the beginning and end of this total lifecycle management process, only a few healthcare organizations have a system in place to rein in the middle of this process, or utilization, where most of their lifecycle costs are incurred. This fact could be costing your healthcare organization a significant amount of money each year.

Defining Utilization Management

By definition, utilization management is control of the wasteful and inefficient consumption, misuse, misapplication or value mismatches in the products, services or technologies you are buying. It’s all those things that happen after you deliver products to your customers. 

Waste and inefficiencies in the consumption of products is where 79% of all new supply chain savings are hidden – inferior products, value mismatches, and misused, misapplied, or misappropriated products must be identified and eliminated. What happens?

  • We evaluate, select and contract for a product/service/technology, then staff will often use too many, misuse or waste products, or choose feature-rich products that are more expensive. In addition, vendors may upsell new, higher cost products outside the new contract.
  • Redundancies in supplies and unnecessary deviations in inventory processes lead to variations in practice, many times sacrificing operational excellence for personal preference or comfort.

Let’s say, for example, that your I.V. pump set cost is $4.65 each and you use 100,000 sets per year. Then this $465,000 represents your annual utilization cost for this I.V. set. If your clinical staff is misusing or misapplying, or the I.V. set is a value mismatch (i.e. lower cost alternative available, but not being employed or purchased) of 10%, you are losing $46,500 annually in what we call a utilization misalignment.

Now, multiply this factor by the 7,000 to 15,000 products, services and technologies that you buy annually to help you to understand the impact of how not having a system in place to effectively, efficiently and easily manage and control your supply utilization is compromising your overall cost efficacy.

That’s why price is just the tip of the iceberg to be considered in your spend. This is because you could actually pay more for a product but have a lower utilization cost (e.g. electrode, bath system or lab test, etc.) and still be way ahead of the game. This fact is important to remember as we move to value-based purchasing.

In our follow-up post, we’ll take a look at what it takes to achieve real improvement.

We Can Help. Intalere helps you better understand the strategic nature of supply chain and provides resources that can assist in bringing efficiency and savings to every area of your supply chain. Reach out to see how we can help. Contact Customer Service at 877-711-5600 or customerservice@intalere.com or your Intalere representative.

Intalere Member Best Practice Spotlight – The University of Vermont Medical Center – Cybersecurity, Who’s Protecting Your Patients’ Digital Information? Technical Standards Review and the Role Supply Chain Can Play in Enforcement and Compliance

Issue

Many hospitals rely on their suppliers to protect their patients’ Protected Health Information (PHI), leaving both the hospital and their patients vulnerable to hackers, HIPAA violations and unplanned outages due to incompatible and outdated technologies.

Solution

To take the responsibility for protecting patient data out of the hands of their suppliers, The University of Vermont (UVM) Medical Center developed a multi-disciplinary group whose mission was to evaluate all newly-acquired technologies, technology changes and their potential impact on the organization to ensure that they are supportable, secure and highly reliable. The Technical Standards Review Board (TSRB) reviews more than 250 applications per year, an average of 10% of which are rejected due to cybersecurity issues, reliance on unsupported third-party applications/databases or incompatibility with The UVM Medical Center’s technical standards for which no remediation is possible. Another 20% of the applications are rejected and subsequently appealed. The supply chain department will then engage with the supplier to discuss what can be done to address the technical issues. In the vast majority of the instances where an appeal was sought, working with the supplier or revising contractual language has enabled the end user clinicians and their support personnel to be able to safely deploy the best technological solution to fit their needs.

Outcome

Since the adoption of this process, approximately 50 software applications and medical devices per year, that would not otherwise be available to the organization due to technical deficiencies, were able to be deployed to the direct benefit of The University of Vermont (UVM) Medical Center patients.

About The University of Vermont Medical Center

The University of Vermont Medical Center (UVM Medical Center), along with the Larner College of Medicine at UVM and UVM College of Nursing and Health Sciences, is one of 138 academic medical centers in the country. Through The University of Vermont Health Network and collaborative relationships throughout Vermont and northern New York, UVM Medical Center is able to provide the highest quality care, informed by academic research, to patients throughout our region.

Check out the project video and view the UVM Medical Center page in the 2018 Intalere Best Practices Compendium.

Intalere Member Best Practice Spotlight-Summit Pacific Medical Center-Supply Chain Transformation

Issue

The Summit Pacific Medical Center (SPMC) materials management department needed to shift from a manual procurement-focused ticket system to an inventory-based, data-driven, end-to-end supply chain model to provide enhanced support and value to SPMC clinical areas.

Solution

By the end of 2017, the SPMC materials management team had succeeded in expanding and improving inventory throughout the hospital and was pushing the boundaries of integrating new areas into the materials management system. Through 5S, Standard Work and Continuous Improvement methods, the materials management team created a highly efficient, data-driven replenishment system that enabled Par Optimization Analysis and slotting logic to proactively size and adjust locations based on consumption to deliver a high reliability of inventory at a low cost of effort. Through point-of-use integration, clinical staff was spending less time managing supplies and had more of what was needed to treat patients. By reducing and sizing inventory locations to demand, supply chain staff was able to reduce their workload and convert former areas that were needed for inventory to patient care areas. To add visibility and transparency to the process, they developed a robust set of dashboards that accurately reported their progress toward goals and areas for improvement and provided important information and feedback to end users on their supply expenses.

Outcome

The improved process resulted in an increase in materials management controls and supply maintenance tracking from 2,727 physical inventory tracked locations to more than 4,364 locations. There was also a net 30% reduction in inventory levels and total hospital inventory turn rate of 4.6. Data visibility was added to department purchases, as well as enhanced controls. Clinical staff time spent on materials management was significantly reduced.

About Summit Pacific Medical Center

Summit Pacific Medical Center (SPMC) is a critical access hospital with a Level IV Trauma designation. SPMC offers 24-hour emergency services including a full-service laboratory and diagnostic imaging department. The Emergency Department is staffed 24 hours, 7 days a week by an ED physician. SPMC also operates three rural healthcare clinics and an urgent care clinic that is open seven days a week. The hospital is unique due to its size and accessibility. SPMC is proud of its low emergency department wait times and its ability to give patients access to a doctor quickly.

Check out the project video and view the Summit Pacific Medical Center page in the 2018 Intalere Best Practices Compendium.

Intalere Member Best Practice Spotlight – Mankato Surgery Center – Managing the Supply Chain and Inventory Efficiencies

ISSUE

Mankato Surgery Center was noticing variables in the year-end physical inventory counting, inconsistencies in product nomenclature, inaccuracies in identifying consignment inventory, and inaccuracies of the physical counts that lead to significant over-valuation of inventory and difficulty in determining profitability.

SOLUTION

A newly created multi-disciplinary Inventory Efficiency Workgroup identified the general assumptions and developed a project scope. The objectives for the project were to eliminate the duplication of labor that occurred during the annual physical inventory of correcting entry counts and to eliminate the erroneous inventory valuation during the annual financial audit. After thorough auditing, benchmarks were created. The multi-disciplinary workgroup team approached and solved the issues from different focal points.

OUTCOME

It was determined that the Item Master List was the pinnacle of the overall issues. Seven percent of products on the Item Master List were identified as inconsistent nomenclature and product misidentification. Staff spent more than 60 hours correcting the Item Master List. Further, the annual financial audit showed inventory was overstated by 94.4% and by removing vendor-owed inventory from the Consignment List, the correct inventory value was calculated. It was also found that the Implant Inventory was set at an artificially high quantity to save computer key strokes, so this was eliminated, thereby, eliminating the artificial high-value of inventory.

ABOUT MANKATO SURGERY CENTER

Mankato Surgery Center, accredited by AAAHC, is a multi-specialty, physician- owned ambulatory surgery center located in south-central Minnesota. Mankato Surgery Center focuses on providing the highest quality ambulatory surgical care with state-of-the-art surgical equipment and technology, and highly skilled and trained staff.

Check out the project video and view the Mankato Surgery Center page in the 2018 Intalere Best Practices Compendium.

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.

Intalere Member Best Practice Spotlight – Virginia Mason Medical Center – Virginia Mason Memorial Supply Chain Integration

ISSUE

With Supply Chain expenses for medical supplies, devices and implants hovering around 10% of an organization’s total net revenue, this is an area where economies of scale, negotiating power and collaboration come together to make healthcare more sustainable and cost effective. The Virginia Mason Health System is committed to taking advantage of these opportunities through a team-centered approach which results in better financial results and improved, focused patient care.

SOLUTION

A team consisting of Virginia Mason Supply Chain leadership, Intalere and Health Resource Services (HRS) representatives instituted weekly meetings that focused on sharing best practices, analyzing standardization opportunities, identifying technology solutions and developing joint project plans. Intalere Savings Roadmaps identified savings opportunities available by simply taking advantage of existing Intalere and HRS regional agreements without any conversion, known as Quick Wins, or by aggregating volume and tier optimization. These Quick Wins accounted for approximately $532,723 in aggregated savings in 2016 and was accomplished without having to convert any suppliers.

OUTCOME

Virginia Mason Health System was able to prioritize and implement more than 60 contracts and tier adjustments. Total savings for phase one of the project topped $1.2 million for the health system. In later phases, the health system will work with Intalere and HRS in the areas of physician preference items, purchased services and other non-labor spend.

ABOUT VIRGINIA MASON MEMORIAL

Established in 1920, Virginia Mason Health System is a non-profit organization offering a system of integrated health services. A multispecialty group practice of more than 460 employed physicians, it offers both primary and specialty care as well as an acute care hospital, licensed for 336 beds.

Check out the project video and view the Virginia Mason page in the 2017 Intalere Best Practices Compendium. Read the full success story.