Materials Management Overview

Transcription

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2 Partners HealthCare Overview Materials Management Overview Procurement Activity ACA Impact on Procurement 2

3 3 PARTNERS HEALTHCARE OVERVIEW

4 Partners HealthCare System Incorporated was founded in 1994 by Brigham and Women's Hospital and Massachusetts General Hospital - two of the nation s leading academic medical centers. Partners is an integrated health care system that offers patients a continuum of coordinated high-quality care. An integral part of this continuum is Partners leadership in the research of medical advances and the education of future health care professionals. Partners is one of the nation s leading biomedical research organizations and a principal teaching affiliate of Harvard Medical School. The system includes primary care and specialty physicians, community hospitals, the two founding academic medical centers, specialty facilities, community health centers, and other health-related entities. Partners is a non-profit organization. The following list summarizes the principal Partners entities. Founding Members Brigham and Women's Hospital and Massachusetts General Hospital

5 Members Brigham and Women's/Faulkner Hospitals Martha s Vineyard Hospital McLean Hospital Nantucket Cottage Hospital North Shore Medical Center Partners Community HealthCare, Inc. (PCHI) Brigham and Women's Physician Organization Massachusetts General Physicians Organization MGH Institute of Health Professions Newton-Wellesley Hospital MGH Institute of Health Professions Partners Continuing Care Joint Venture Dana-Farber/Partners Cancer Care and Harvard Clinical Research Institute Major Teaching Affiliate Harvard Medical School The following are some additional facts on Partners HealthCare $8.9B in overall operating revenue $1.4B in academic and research revenue Over 3,800 licensed beds Over 1.1M annual inpatient day visits, and 8.8M annual ambulatory visits Over 65,000 employees & the private largest employer in the Commonwealth of Massachusetts Our corporate headquarters are located in Boston, Massachusetts. Further information can be found at:

6 6 MATERIALS MANAGEMENT OVERVIEW

7 Supply Chain Typically anything paid through Accounts Payable Three Primary Functional Areas Contracts Purchasing Accounts Payable Specialty and Support Groups MMIS (PeopleSoft HR/Financials) Data Analytics Content Management (Item Master Management) Vendor Management/Vendor File Management Client Services/Resolution Team 7

8 Supply Chain Contracting Department Overview Accountability for all supply chain contracts Capital Purchases Leases Distribution Minor Equipment Facilities & RE Environmental Medical Supply Radiology Perioperative Laboratory Research Cardiology Respiratory Pharmacy Support Services Hardware Software Staffing Professional Services Independent Contractors Support Services Marketing 8

9 9 Ensure all products, services, and outside expenses are competitively priced with contractual language that is in the best interest of Partners Provide exemplary customer service to all stakeholders Collaborate with PHS vendors to build solid business relationships that will benefit the organization Oversee all PHS supply chain contracting business strategies

10 10 Materials Management is charged with building effective business relationships with vendors and suppliers by Open and fair competition Respect for the confidentiality of quotes and information Provide uniform and transparent contract negotiations at PHS Review of all documents prior to commitment by PHS Ensure compliance with applicable laws, statutes, regulations and PHS Terms & Conditions

11 11 PARTNERS HEALTHCARE PROCUREMENT ACTIVITY

12 12 PHS supply chain spend and expenses = over $1.2 Billion 2,300 Contracts (1,600 local & 700 VHA) Type of contracts: Supply Chain, Maintenance, Purchase Services, Consulting, Leasing, Capital, Software Licensing, and Pharmaceutical McKesson Pharmacy $250M Owens and Minor $129M Johnson & Johnson $ 40M American Red Cross $ 21M Fisher Scientific $ 21M Royal Linen $ 21M

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14 GPO Group Purchasing Organization A service entity that provides contracting services by leveraging economies of scale on behalf of its members. In health care, hospitals pool the negotiating and buying power of multiple health care providers to better afford the best drugs, supplies, services and medical devices for patients GPOs help hospitals purchase the best product at the best price 14

15 15 Negotiate prices, terms and conditions for products and services Drive volume and reduce costs Drive efficiencies through the supply chain Monitor the market (budget impact, raw materials, supply availability, new technologies) Provide purchasing information for the hospitals

16 16 90% of America s 5,000 hospitals pay a membership fee to use a GPO What they gain: Lower prices and price protection Quality controls on products and distribution services Benchmarking data for purchasing decisions Best blend of hospital resources and GPO expertise Process efficiencies Monitoring of market conditions Reduced legal risk In addition to contract portfolios, GPOs offer information sharing; clinical and operational benchmarking; and assistance with value analysis

17 17 A.C.A. IMPACT ON PROCUREMENT

18 18 The Affordable Care Act Health care law passed in late 2009 Aimed to improve the health care system by increasing access to health coverage for Americans introducing new protections for people who have health insurance Create a continuum of care for patients through incentives Reduce the overall cost of health care

19 19 Consolidation in the healthcare market, in all aspects Key suppliers are focused on fewer accounts with larger volumes IDN s are on transformation to a continuum of care model ACO s emerging and taking shape Keeping quality of care up and striving for improvements Striving to keep costs of quality care down Incentive based physician payments We need to be prepared for acquisitions to meet the demands of the emerging ACO s We need to be quicker to respond and assimilate to begin to drive value from supply chain We need to become more agile with the ability to react to industry and market changes

20 20 REDUCE SUPPLY CHAIN EXPENSE! We ve been asked to and have achieved on an ongoing basis; Improve pricing of goods and services Consolidate and contain products and vendors Standardize when and where possible Reduce utilization, waste and excess Next Steps for Materials Management; Increase efficiency in supply chain processes Become more technologically focused Continue to be leaders in the field

21 21 Q & A THANK YOU