Implementation of the GS1 Standards in Healthcare

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GS1 Connect 2016 June 1-3 Implementation of the GS1 Standards in Healthcare Session 505 Heidi Sweeney, St. Joseph Health Jean Sargent, USDM

St. Joseph Health 2

Introductions Heidi Sweeney Manager Data Integrity & Analytics Heidi Sweeney has more than 28 years experience in supply chain. At St. Joseph Health, she manages the team responsible for the organization s Items Master and for Supply Chain analytical reporting. Heidi is actively involved with AHRMM and currently serves a member of the AHRMM education committee and as the treasure for CAHPMM (California Association of Healthcare Materials Managers). Bryan Meek Supply Chain Analyst Bryan Meek is a system data analyst on the St. Joseph Health Data Integrity & Analytics Team. His enthusiasm, combined with database processing expertise, training experience, and communications background, helps him lead the effort to implement GS1 standards to tame and optimize the organization s Item Master. Bryan also leads a project to identify and streamline system duplicate items and works closely with each hospital s supply chain director to help manage inventory and templates for automated ordering and fulfillment.

St. Joseph Health ABOUT US Not-For-Profit Integrated Catholic Health Care Delivery System based in Irvine, California Founded by the Sisters of St. Joseph of Orange First Hospital established in 1920 in Eureka, California Health System established in 1982 4

St. Joseph Health Three Geographic Regions: Northern California, Southern California and Texas/Eastern New Mexico Total Revenue of $5.6 Billion 16 hospitals, as well as home health agencies, hospice care, outpatient services, skilled nursing facilities and physician organizations Nearly 24,000 employees and more than 1,500 affiliated physicians Supply Chain spend is $1.4 billion Centralized Purchasing/AP 5

St. Joseph Health Our Mission To extend the healing ministry of Jesus in the tradition of the Sisters of St. Joseph of Orange by continually improving the health and quality of life of people in the communities we serve Our Vision To bring people together to provide compassionate care, promote health improvement and create healthy communities 6

USDM Life Sciences 7

Introductions Jean Sargent VP, Strategy and Implementation Jean has over 35 years of supply chain experience in central service/materials and supply chain management. She actively participates in many activities related to the healthcare supply chain towards adoption and implementation of standards. Jean actively participates in many activities related to the healthcare supply chain to improve upon industry standards. such as UDI to improve patient safety. Andy Martin has three decades of experience in the healthcare supply chain industry designing, implementing, and managing systems to drive cost out of healthcare. Systems he has designed and integrated include: Electronic Data Interchange, Supplier Catalog, Order to Cash, Enterprise Resource Planning, Andy Martin Labeling, Data Pool, Requisitioning, and Point of Use. He has been a thought Sr. UDI leader in defining standards for product identification in US healthcare. Consultant

About Us Who We Are USDM Life Sciences has been providing some of the world s largest medical device and pharmaceutical companies with business process, technology and compliance solutions for more than 14 years. Now, we re closing the gap to improve patient safety. What We Offer We offer healthcare providers with solutions and services to ensure the quality of medical devices and pharmaceuticals to meet regulatory requirements while reducing costs. Our services span the entire healthcare spectrum from healthcare providers to manufacturers and distributors. We partner with key technology partners to bring the best mix of knowledgeable resources to every client. What Makes Us Unique Our experts are recognized thought leaders in emerging healthcare topics. In fact, they lead industry efforts to define and drive standards to achieve patient safety and supply chain goals. They specialize in improving business productivity through the implementation and adoption of new technologies that power business processes in the highly regulated healthcare industry.

USDM Life Sciences at a Glance Offering healthcare providers supporting adoption and implementation of a secure supply chain Market leader in providing IT, Quality & Regulatory Compliance professional service solutions to the heavily regulated Life Science industry Headquartered in Santa Barbara, CA Compliance partner for many best-of-breed vendors including Oracle and SAP Proven track record successful projects with over 300 life science clients Preferred Compliance Partner for small, midtier and large Life Science companies alike Service and Solution Areas: Business Intelligence Clinical Customer Relationship Management (CRM) Enterprise Content Management (ECM) Enterprise Quality Management Enterprise Resource Planning (ERP) Global Audits Governance, Risk & Compliance (GRC) IT & Virtualization Healthcare Lab / LIMS Systems Learning Management Systems Life Sciences Cloud Manufacturing Systems Product Lifecycle Management (PLM) Project Management Track & Trace Unique Device Identification (UDI)

USDM Services for Healthcare Providers Supply Chain Services Assess SC Strategy re: Regulations and Patient Safety UDI Adoption What, Why and How Program Development and Execution Pharmacy Services Assess Pharmacy Strategy re: New Laws (DSCSA) and Patient Safety DSCSA Compliance DSCSA System Strategy and Execution IT and Data Services Integrate Medical Device UDI Data with Supply Chain and EHR MDM Solutions SalesForce Healthcare Initiatives

Why GS1 Standards Adoption 12

Why GS1 Standards? Standardization - Manufacture catalog numbers - Vendor catalog numbers/packaging Analytics 13

What are the Drivers? Meaningful Use Stage 3 Item Master Cleanup Vendor Master Cleanup 14

State of the Item Master Active purchasing vendors: 7,491 Active items: 175,100 Average PO s processed per month: 22,000 15

Kick Off Meeting Attendees St. Joseph Health Nita Stith, VP Finance & Supply Chain Strategy Terry Wooten, VP Clinical Supply Chain Heidi Sweeney, Manager Data Integrity & Analytics Don Waters, IT Bryan Meek, Supply Chain Analyst Chuck Chekuri, Data Scientist Others Salil Joshi, GS1 US Jean Sargent, USDM Andy Martin, USDM 16

Current Systems McKesson PMM v16 PAR EX PICIS GHX MedAssets ECRI 17

Current Partners Cardinal Med Surg Distribution Henry Schein Abbott Cook Johnson & Johnson 1WorldSync USDM 18

The Project 19

Project Team Heidi Sweeney, Project Lead, PMM Expert Bryan Meek, PMM Project Jorge Mazon, PMM Project Support Andy Martin, GS1 Standards/UDI expert Jean Sargent, Project Manager Salil Joshi, GS1 US 20

Project Plan Charter Tasks, Scope, Resources, Cost and Timeline of the Initiative Start Document requirements and steps for project participants Implement Document process, issues identified for future implementation Report Weekly overall project Weekly - St. Joseph GLN/GTIN Tracking to Milestones Close Decision register and issues tracker 21

Supplier Adoption Tracker GLN Supplier Go Live Tracker Identify Customer Account Numbers Reconcile Account Numbers to GLNs Work with MedAssets on GLN Changes Finalize GLN Xref Share GLN Xref with Vendor Load GLN Xref into GHX Super SAW Update PMM with GLNs Vendor Approves Super SAW Execute GLN Test Orders Approve GLN Test Orders GLN Go Live Abbott 2/17/2016 3/3/2016 3/7/2016 3/24/2016 3/25/2016 4/20/2016 4/29/2016 5/2/2016 5/4/2016 5/6/2016 5/10/2016 Cook Medical 2/17/2016 3/3/2016 3/7/2016 3/24/2016 3/24/2016 4/20/2016 4/29/2016 5/2/2016 5/4/2016 5/6/2016 5/10/2016 Vendor 3 3/25/2016 3/27/2016 4/1/2016 4/8/2016 Vendor 4 4/9/2016 4/15/2016 GTIN Supplier Go Live Tracker Identify Supplier Items in PMM Send Item Master List to Supplier Supplier Returns Item Master w/ GTINs Review and Approve GTIN Xref Load GTINs into PMM Execute GTIN Test Orders Approve GTIN Test Orders GTIN Go Live Abbott 3/8/2016 4/7/2016 4/29/2016 5/6/2016 5/9/2016 5/11/2016 5/12/2016 5/16/2016 Cook Medical 3/17/2016 3/28/2016 4/4/2016 5/6/2016 5/9/2016 5/11/2016 5/12/2016 5/16/2016 Vendor 3 4/1/2016 4/15/2016 Vendor 4 4/17/2016 22

Maturity Model Discussion 23

Steps for Maturity Model Maturity Model will be developed for each participant of the end-toend supply chain Manufacturer Model Distributor Model GPO Model Provider Model Hospital Provider Model - IDN Maturity Model will be reviewed with solution providers as they incorporate standards into their systems L1 L2 L3 L4 L5 Each Maturity Level indicates which GS1 Standard is in use, the level of proficiency achieved at each level and the business impact Model would explain what is required to transition between L1 to L2 Maturity Model provides a process roadmap for developing the end to end process start with Level 1 and finish with Level 5 24

Sample GLN Maturity Model for Providers Sample Model for Global Location Number (GLN) Adoption Level 1 GLN locations not in use; provider uses account numbers to identify provider and manufacturer locations Level 2 GLN locations identified and hierarchy is owned by provider Level 3 GLN locations are managed actively and stored in database tables: Not used in transactions Level 4 GLN hierarchy is managed; GLN numbers are used in transactions with few suppliers Level 5 GLN hierarchy is managed actively to ship-to level or deliver-to level; GLN numbers are used in transactions with top 20 suppliers; GLN number used to sync data from GDSN L5 L1 L2 L3 L4 25

Sample GTIN Maturity Model for Providers Sample Model for Global Trade Item Number (GTIN ) Adoption Level 1 GTIN not in use; provider uses manufacturer catalog number to identify products and devices Level 2 GTIN s sourced as part of sourcing process and stored in item master file Level 3 GTIN s are managed actively; Not used in transactions. Metrics are established for number of GTIN as % of total item master Level 4 GTIN s are stored in item master file; GTIN s are used in transactions with few suppliers on purchase orders and EDI transactions Level 5 GTIN are used in transactions with top 20 suppliers; GTIN s stored for majority of items; GDSN is used for receiving item level attributes and used in transactions; A Master Data Management strategy is developed and maintained L5 L1 L2 L3 L4 26

Lessons Learned A majority of the GLN/Ship To reconciliation is completed during the pilot Need to setup all ship to s to order in the same manner Build tools to support a repeatable process Supplier Communications GPO GLN Request Forms Customer Account Templates Item Master Templates Perform necessary data cleanup while avoiding scope creep Determine plan for Item Master updates before sending Items to Supplier Build Item Master Templates to support update plan 27

Next Steps ERP is updated with GLN, GTIN, Global Data Synchronization Network (GDSN ) Clinical System Assessment Project Plan to implement scanning of UDI/GTIN in clinical areas 28