The Impact of The Affordable Care Act on the Supply Chain

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1 The mpact of The Affordable Act on the Supply Chain The mpact of The Affordable Act on the Supply Chain Nick Dominick Senior Vice President, Diagnostic and Support Services, Lifespan/Rhode sland Hospital Ted Almon President & CEO The Claflin Company

2 NCK DOMNCK Title: Company: Senior Vice President, Diagnostic and Support Services Lifespan Nick Dominick is responsible for supply chain management, pharmacy and imaging services for Lifespan, and cancer and cardiac services for Rhode sland Hospital. He has been with Rhode sland Hospital and Lifespan since 2000, when he joined the staff as the director of materials management. n 2004 he was appointed to the position of administrative director for cardiovascular services. n 2008 he was promoted to the position of vice president. n 2013, he was promoted to his current Senior Vice President position. Nick has over twenty five years of experience in health care operations. This experience is in both clinical and support services. Prior to joining Lifespan he served as the manager of materials management for New York Presbyterian Hospital. He received his undergraduate degree in business administration from Pace University.

3 TED ALMON Title: President, CEO Company: Claflin Company Mr. Almon became President & CEO of the Claflin Company in 1976, upon its purchase by the Almon Company. He spent the six prior years in progressive sales and marketing positions for Baxter Laboratories (now Baxter nternational). Under his direction, Claflin has grown vigorously and has become recognized within the industry as a pioneer in advanced logistics programs for hospitals. He has served on the editorial advisory board of Hospital Purchasing News, Repertoire, Health ndustry Today, and Hospital Materials Management. Mr. Almon is also Chairman of the Board of Claflin Medical Equipment Company, which provides specialty equipment and biomedical repair services to the hospital and alternate site markets. He is the current Board Chairman of National Distribution and Contracting nc., a master distributor/buying group in the healthcare distribution supply chain.

4 The mpact of The Affordable Act on the Supply Chain The mpact of The Affordable Act on the Supply Chain Nick Dominick Senior Vice President, Diagnostic and Support Services, Lifespan/Rhode sland Hospital Ted Almon President & CEO The Claflin Company

5 mperatives of the ACA Coverage/Access Quality Cost

6 The Fee for Service System Acute Primary Specialty Long-term Home Ancillary Services

7 What is an ACO?

8 What is an ACO?

9 What is an ACO?

10 The ACO Model Acute Primary Specialty Longterm Home Ancillary Services

11 The mpact of the ACA Effect on the manufacturers Sourcing Device Tax Value based purchasing Pay for performance Bundled payments Global budgets

12 Supply Chain nfluence On the Cost of

13 Background of the Current Supply Chain Key Players Hospitals Other Providers - Physicians G.P.O.s Distributors

14 Supply Chain Traditional Activities Sourcing Contract Negotiation Logistics Management

15 The New Model and its Supply Chain Efficiency within the hospital Lower the cost of care

16 What is an ACO?

17 Supply Chain Exec New Era Collaboration with Clinical Leaders Evaluate Cost within the Context of the Total Episode of Reliance on Data Analytics Procedure Based Utilization & Variation

18 Move care out of the acute setting when appropriate Expansion of outpatient facilities Broaden the reach of the ACO How do we get products throughout the network efficiently? The new role of the distributor

19 Questions? Comments? Nick Dominick Senior Vice President, Diagnostic and Support Services, Lifespan/Rhode sland Hospital Ted Almon President & CEO The Claflin Company

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