Supplier Strategies Track. Vendor Management

Supplier Strategies Track Vendor Management

Supplier Strategies Track Vendor Credentialing Update Presenter: Don Sizemore, President IMDA (Independent Medical Distributors Association) Member of the Steering Committee Coalition for Best Practices in HCIR Requirements

FACULTY(DISCLOSURE( The(faculty(reported(the(following(financial(relaAonships(or( relaaonships(to(products(or(devices(they(or(their(spouse/life( partner(have(with(commercial(interests(related(to(the(content(of( this(ce(acavity:(( ( Don(Sizemore,(President(IMDA((Independent(Medical( Distributors(AssociaAon)(( ( (No(financial(interest/relaAonship(relaAng(to(the(topic(of(this( acavity(

Time(Line(for(Vendor(CredenAaling( Pre(2001( (A(few(individual(hospitals(set(up( their(own(individual(vendor(credenaaling( process.((sign(in(for(badge,(give(them(your(keys( and(make(your(calls.(((many(did(not(charge(a( fee,(some(charged(a(nominal(fee($50.(((no( 200 200 201 sophisacated(systems(were(in(place)( 2001$ 5$ 8$ 0$ 201 2$ 201 4$ Week( 1( 2 3 4 5 6 Tod ay(

Time(Line(for(Vendor(CredenAaling( 2005( (Vendormate,(Vendor(Clear,(Reptrax( come(on(the(scene,(greatly(increases(the( number(hospitals(credenaaling.((vendors(are( concerned(about(the(proliferaaon(of( requirements(that(providers(are(demanding( 200 201 201 vendors(to(meet(with(no(common(set(of( 2001$ 2005$ 8$ 0$ 2$ requirements.((( Week( 1( 2 3 4 5 6 201 4$ Tod ay(

Time(Line(for(Vendor(CredenAaling( 2008( (Vendor(CredenAaling(frustraAons(have( reached(a(boiling(point(with(vendors.(many( groups(have(made(recommendaaons(to( streamline(requirements.(((joint(commission( says(they(will(get(involved.( 2001$ 2005$ 2008$ 201 0$ 201 2$ 201 4$ Week( 1( 2 3 4 5 6 Tod ay(

Time(Line(for(Vendor(CredenAaling( 2010( (Several(documents(published(suggesAng( a(streamlined(lined(approach(to(credenaaling.(( No(real(change(has(occurred.((SAll(have(not( heard(from(joint(commission.((small(business( and(technology(innovaaon(companies(feeling( the(full(weight(of(vendor(credenaaling(cost( 200 2001$ 2005$ 2010$ 201 with(80%(of(hospitals(using(credenaaling( 8$ 2$ services.( Week( 1( 2 3 4 5 6 201 4$ Tod ay(

Time(Line(for(Vendor(CredenAaling( 2011( (Indiana(Community(and(Indiana(Hospital( AssociaAon(developed(a(consensus(around(( universally(accepted(credenaaling(documents( 2001$ 2005$ 200 8$ 2011$ 201 2$ 201 4$ Week( 1( 2 3 4 5 6 Tod ay(

Time(Line(for(Vendor(CredenAaling( 2012( (Mayo(Clinic(Supply((Chain(Management( publishes(a(white(paper(on( Standardizing( CredenAaling(Requirements(for(Healthcare( Industry(RepresentaAves. ((((( 2012( (Joint(Commission(publishes(expectaAons( for(nondlicensed(non(employee(individuals(( 2001$ 2005$ 2008$ 2010$ 2012$ 201 4$ Week( 1( 2 3 4 5 6 Tod ay(

Time(Line(for(Vendor(CredenAaling( 2013( (HCIR(sends(leeer(to(Joint(Commission( regarding(standards,(ciang(the(fact(that(the(lack( of(consistency(in(the(vendor(credenaaling( process(is(hindering(the(ability(of(vendors(to( provide(criacal(healthcare(products(in(a( streamlined(manner.( 2001$ 2005$ 2008$ 2010$ 2012$ 2013$ Week( 1( 2 3 4 5 6 Tod ay(

Time(Line(for(Vendor(CredenAaling( 2014$ $Mee,ng$in$Chicago$HCIR$vendor$ Creden,aling$summit((ConAnued(discussions(on(the( need(for(standardizaaons(of(requirements( 2001$ 2005$ 2008$ 2010$ 2012$ 2014$ Week( 1( 2 3 4 5 6 Tod ay(

What s(the(common(denominator?( In(the(past(10(years,(there(has(been(a(conAnued( need(for(standardizaaon(of(vendor( credenaaling.((((

So,(What s(the(big(deal?(

Other(ConsideraAons(in(addiAon(to( the(need(for(standards( Who(really(pays(for(vendor(credenAaling?((Are( we(gehng(our(money s(worth?( Portability(is(confusing(or(nondexistent( 1099(or(Independent(RepresentaAves(are(lej( out(of(the(processes(and(programs( (

HOW$SHOULD$WE$MOVE$ FORWARD?$

Standards(are(everywhere ( NEA Teacher Education Standards American$Na,onal$Standard$for$Electric$ Connectors Sealed$Insulated$Underground$ Connector$Systems$Rated$600$V( Standards(for(the( disposal(of( used(oil ( National Standards for Culturally and Linguistically Appropriate Services in Health Care ISO$9001$ It s(our(time!(

Why(are(standard s(so(necessary?( Drug(Screens( (Which(One,(When( Legalized(Marijuana,(Federal(Law(Trumps(State( Law( Return(from(Leave,(random,(annual( ( Have(you(ever(thought( about(this (

Background(Check($9.99(@( www.?????.com( Background(Checks( Social(Security(Number(Trace( Criminal(Records(Check,(Where,(When( Sex(Offender(Registry( Healthcare(SancAons(

CredenAaling(Issues( Management( Clinical(Educators( Foreign(Manufacturer(RepresentaAves(

Business(Associate(Agreements( Not(really(designed(for(most(contact(points( If(you(must(sign,(be(cauAous(and(most( faciliaes(are(willing(to(reddline(nondessenaal( clauses(

ConAngent(Labor( Per(Diem(Employees( 1099(Sales(RepresentaAon( What(Company s(drug(screen( What(Company s(liability(insurance( Who's(really(checking(credenAaling?(

HCIR(Best(PracAces( www.hcirbestpracaces.org(( Chicago(August(7 th (and(8 th,(2015(

Will(be(at(the(end(of(the(session( Thank(You(

Supplier Strategies Track Supplier Diversity Presenter: Timothy Martin, CMRP Manager, Procurement Supplier Diversity Coordinator CHRISTUS Health

FACULTY(DISCLOSURE( The(faculty(reported(the(following(financial(relaAonships(or( relaaonships(to(products(or(devices(they(or(their(spouse/life( partner(have(with(commercial(interests(related(to(the(content(of( this(ce(acavity:(( ( Timothy(MarAn,(CMRP( Manager,(Procurement( (Supplier(Diversity(Coordinator( CHRISTUS(Health( (( (No(financial(interest/relaAonship(relaAng(to(the(topic(of(this( acavity(

Topics $! CHRISTUS Health Overview Who We Are How Diverse Are We! CHRISTUS Health Supplier Diversity Commitment and Importance! Company Operational Dashboard! Supply Chain Governance Developing a Successful Program How To Increase Diversity Spend! Reflecting Back! Final Thoughts

Who We Are International Catholic, faithbased, not-for profit health system comprised of almost 350 services, more than 50 hospitals and longterm care facilities, 175 clinics and outpatient centers, and dozens of other health

CHRISTUS Health Core Values Dignity Respect for the worth of every person, recognition and commitment to the value of diverse individuals and perspectives, and special concern for the poor and underserved. Stewardship Wise and just use of our talents and resources in a collaborative manner Excellence High standards of service and performance Integrity Honesty, justice and consistency in all relationships Compassion Service in a spirit of empathy, love, and concern

Our Locations CHRISTUS operates in 6 U.S. states, 6 states in Mexico, & Chile

Diversity is about Everything with No and Nothing Left Out One 60.0%( 50.0%( 40.0%( 30.0%( 20.0%( 10.0%( 0.0%( Senior$Leadership$ 58%$ CHRISTUS$ Diversity$ 47%$ M$ M$ 46.0%( 54.0%( 10.580%( 12.420%( Women( Men( Sr.(Leadership( Sr.(Leadership( Minority( 54%$ 46%$ 42 %$ 36%$ 10%$ NondMinority( Minority(d(Women( Minority(d(Men( The Leaders The Employees The Board 120.0%( 100.0%( 80.0%( 60.0%( 40.0%( 20.0%( 0.0%( 61%$ Board$Members$ MW$ 65.0%$ 35.0%$ CHRISTUS( Regional( Board( 75.0%$ 25.0%$ CHRISTUS( Board( 39 %$ NondMinority( Minority(

Diversity is about Everything with No One and Nothing Left Out Within the last 24 months, our senior leader level we went from 13% minority to 23% and doubled the minority representation on our board to 25%. 46% of our senior leaders are women. Overall we're about 80% women and 40% minority. CHRISTUS Board holds our leaders accountable to this initiative.

E X E C U T I V E Main)Menu Leadership( Effectiveness( C O U N C I L Destination)Operational)Excellence CHRISTUS(Health Actual Goal Actual Goal Actual Goal Actual Goal Actual Philanthropy($(to(Target Pending 100.0% 0.00% 0.69% 1.00% 0.0% $0 $46,329,503 Pending 4.19 0.0% 71.6% 0 728,686 0.0% Medicare(Overall(Readmission( Rate 0.0% 10.5% 0.0% 13.0% 100.0% 0.0% 0.0% 0 %(of(plan Supplier(Diversity(Spend Palliative(Care Bedside(RN(Voluntary( Separation Physician(Affinity(Score Critical(Pathway(Scorecard: Year)to)Date:))July)2014 Culture Clinical+Integration Asset+Growth Community( People( Quality Growth( Stewardship( Measure Measure Associate(Engagement( Measure Harm(Reduction Patient(Satisfaction( MIDAS(Optimization Meaningful(Use 0.0% 7.5% 0.00 4.98 0 3 0.0 50.0 0 Patient(Portal(Registration 0.0% 6.0% 0.0 0.0 0.00 Culture(of(Patient(Safety Measure System(Flex(Goal ED(Growth Payor(Mix:(%(Commercial Primary(Care(Growth Personnel(Growth Primary(Care(Growth %(of(plan Service(Line(Growth( (Ortho/Spine) 0.0% 59.6% 0.0% 0.0% 0.0% Measure Goal Operating(Margin: (Actual(vs.(Budget 0.0% Labor(Productivity(%( 100.0% Clinical(Integration(Cost( Reduction Clinical(Operations( Improvement %(of(plan Medicare(LOS(Ratio 1.15( Revenue(Cycle(Realization( 120/120 86.5% Additional)Recognition)for)Performance Top)National)Decile)Performer)(External)Measure)Benchmark) Top)CHRISTUS)Performer Reflect)Actual)Performance At or Above Established Goal Within the Established Range Below Established Range

SCM Governance Senior physician and nursing leadership Facilitates strategic direction Advocate for Supply Chain Meets 8-10 times per year 20-25 key vendors and suppliers Intracollaboration Establish vendor managemen t strategy, processes and guidelines Awareness and support of CHRISTUS Health strategic direction Meets 4 times per year Partner Advisory Council Supply(Chain( Leadership( Clinical Leadership Group Diversity Supplier Council SCM Corporate leadership Materials Management leadership System CFOs Facility-based leaders from key spend areas Executive Resource Utilization Groups sponsored Highest level of Value Analysis and directs facilitybased VAT response Chair serves at MedAssets national level Meets monthly 10-12 key vendors and suppliers Intra-collaboration Promote supplier diversity and set strategic direction Meets 4 times per year

Developing a Successful Program 6 Key strategies: Executive Sponsorship and Top Management Support Policy Development / Alignment with Company Strategy Comprehensive Internal and External Communications Diverse Supplier Development Processes Establish Measureable GOALS and Quantify Success Identify and Increase Opportunities for Diverse Suppliers

Executive Sponsorship Top Management Support is KEY Assumed the role of CEO of CHRISTUS Health on March 1, 2011. In this position, Ernie leads day-to-day operations for CHRISTUS Health and lends extensive expertise in developing programs to improve quality and clinical integration and preparing the organization to capitalize on the opportunities of the future. Ernie also serves as the Chief Diversity and Inclusion Officer for CHRISTUS Health, developing the strategic initiatives and processes to ensure that CHRISTUS is living out its commitment to valuing differences and strengthening the ministry's culture of inclusion. Ernie Sadau CEO Gene, a CHRISTUS executive leader nearly three years, was recently selected as one of Modern Healthcare magazine s 2014 Top 25 Minority Executives in Healthcare. Considered a mentor and role model to other minority healthcare executives; an ability to effect change in the healthcare industry and demonstrate a willingness to share expertise with others in the field. Members of this group are a shinning examples of what can happen to a healthcare organization and to a community when diversity Eugene Woods President and COO

Development of Corporate Policy Top Management Support is KEY To achieve success it is essential to Develop a simple but succinct corporate policy that clearly defines which Disadvantaged Business Enterprise (DBE) groups we plan to partner with, whether outsourcing or forming strategic alliances. Strategically align with the organization s corporate plans and policies. Supplier Diversity goals must support demographic trends, procurement goals and benefit the overall corporate goals. Contain a statement that encapsulates the fundamental goals, objectives and benefits of the program for the organization, its staff, shareholders and the local community.! Management Directive 8: CHRISTUS Health, in accordance with its management directives, guidelines and policies governing the purchase of goods, services, and equipment, will intentionally award capital asset agreements, service agreements, and supply purchases to certified socially and/or economically disadvantaged businesses (SEDBE), encouraging community economic development and building successful business relationships.

Development of Corporate Policy Top Management Support is KEY Assuring that Supplier Diversity is a part of everything that we do. We have embedded diversity contract language into our contract templates and RFP process. Customer and Supplier acknowledge their respective company practices and actively encourages the participation of:: (i) minority owned businesses; (ii) woman - owned businesses; (iii) service disabled veteran owned businesses; or (iv) Historically Underutilized Business Zone (HUBZone) businesses, collectively ( Diversity Suppliers ) in their procurement processes, and their desire to work together to further the use of Diversity Suppliers in fulfillment of their obligations under this Agreement. Supplier acknowledges that Customer may be required to meet certain government compliance regulations relative to Diversity Suppliers. On a quarterly basis, Supplier will provide available non-confidential information and data regarding their supplier diversity programs and diversity spend reports related to its obligations hereunder.

Comprehensive Internal and External Communications

Diverse Supplier Development Processes CreaAng(a(strategy(for(developing( relaaonships(with(diverse(suppliers(will( contribute(to(the(success(of(your(program.( Almost(a(year(ago,(CHRISTUS(Health(launched(an( innovaave(approach(to(this(key(element(by( developing(the(diversity$supplier$council$(dsc).(((

Diversity Supplier Council - Vision Statement Bring together industry leaders willing to share their unique perspectives on how CHRISTUS Health can maximize opportunities to identify, educate, develop and increase utilization with diverse suppliers. To promote CHRISTUS Health s Mission and Core Value of Integrity through diversity focused initiatives and supply chain centered solutions to strengthening the ministry's culture of inclusion. * CHRISTUS Health s Mission is to extend the healing ministry of Jesus Christ and, of its five Core Values, Integrity is defined as honesty, justice and consistency in all relationships and aptly guides our direction with suppliers

Establish Measureable Goals and Quantify Success Establishing a Diversity Spend goal and understanding what to track (! FY13 target was 4.5%, result was 4.6%. FY14 target was 5.0%, result was 7.9%! FY15 target is 7.5% and currently trending at 7.1% YTD.! There are certain categories that are removed from the spend as there is no viable vendors in this particular category (i.e., implantable, pharmaceuticals). 44(

How To Increase Diversity Spend Formation of an internal SCM Diversity Contracting Committee Developed a Diversity Opportunity Tracker Identified $2.5 million spend for possible shift to diverse suppliers. Enhancement of spend tracking tool down to GL detail. Ensure diversity language is embedded into the RFP process and onto contract template. Formation of Diversity Supplier Council (DSC) Advisory council of 10-12 suppliers both diverse and nondiverse. Primary objective is to facilitate doing business with CHRISTUS and how best to compete with larger peers. Meet quarterly with SCM Diversity Contracting Committee. Networking and Collaborating Continued Networking and Partnering with peers on best practices. Partner with professional associations gaining access to national databases HSDA, WBENC and D/FW MSDC Collaborate w/non-diverse suppliers strengthening their Tier1 program with diverse suppliers Future Goals Real Time Dashboard Reporting Develop a robust Tier 2 tracking tool Development of a system-wide Outreach program. Engaging GPO on identifying new Diverse Suppliers where there s no current opportunity. (i.e. PPI, Pacemakers,

Collaboration and Networking are KEY ExecuAve( Sponsorship( Networking(and( CommunicaAon( Supply(Chain( Dashboard( ReporAng( Holistic Approac h GPO(Engagement( External( AssociaAon( Memberships( Accurate(Data( CollecAon( Vendor(RelaAon(/( Mentorship(

Reflecting Back To have a successful program you must have the following: Passion; be that Champion to influence change in order to see the program moving forward. Understand the Vision; be focus driven, persistent, network-network-network and most of all expect challenges. When one door closes on you, move over to the next door and knock again and again until you start seeing the benefits of your works. Remember to keep it simple and utilize the resources available to you. Supplier Diversity should be part of everything we do and we shouldn t have to reinvent the wheel to get there.

Final Thoughts CHRISTUS Health s success in developing its Supplier Diversity Program is credited to the fact that the organization has long recognized the importance of diversity and inclusion and it: Underpins the company s core mission. Guides interaction with patients, Associates, and the communities it serves. Demonstrates a top down commitment to the organization s diversity and inclusion policies which supports efforts for supplier diversity. Remember, Supplier Diversity is more than just a policy; it needs to be an integral part of your company s practices coming from the top-down.