Supplier Education 2015

UMCSC Supplier Forum
October 13, 2015
WELCOME
Bruce Mairose
Vice Chair, SCM, Mayo Clinic
2|
WELCOME
• Introduction
• Agenda Review
• Membership Changes
• Message to our Suppliers
3|
UMCSC Overview, Governance and
Membership
Nancy Wobig, Director, Medical
Surgical and Laboratory Contracting
Mayo Clinic
4|
Who is UMCSC?
 The Upper Midwest Consolidated Services
Center (UMCSC), is a member-driven and
owned supply network. The UMCSC is a
leading VHA supply network.
 40 members, over 270 contracts in its
portfolio and $5.5 billion in annual
member supply spend
 Centralized sourcing and contracting
services provided by Mayo Clinic &
Novation.
5|
Our Collective Scale
Contract Coverage
UMCSC contracts cover the following % of a
members potential spend in each of the following
areas:
 Commodities 90%
 Clinical preference 93%
 Physician preference 89%
It is projected that in 2015 Physician Preference coverage
will increase to 97%.
6|
270+
Membership
7|
Membership Demographics
As of January 2015
Total Number
8|
Members
40
Hospitals
171
States represented
18
OR suites (inpatient & outpatient)
1,020
Surgeries performed annually (inpatient & outpatient)
762,000
Outpatient surgery centers
60
Licensed patient beds
18,770
Outpatient radiology centers
143
Employees
185,000
Member Supply spend (including pharmaceuticals)
$5.5B
Supply spend transacted on UMCSC agreements
$2.3B
Class A (9members)
Aspirus
CentraCare Health System
Froedtert Health, Inc.
Gundersen Lutheran Health System, Inc.
Mayo Clinic
NCH Healthcare System
North Memorial Health Care
ProHealth Care, Inc.
Thedacare, Inc.
Class A1 (1 member)
Sparrow Health System
Class CCP (1 member)
Sanford Health
Class B (25 members)
Altru Health System
Beaver Dam Community Hospitals, Inc.
Bellin Memorial Hospital, Inc.
Beloit Health System
Boulder Community Hospital
Elmhurst Memorial Healthcare
Excela Health
Fayette Regional Health System
Grand Itasca Clinic and Hospital
Jefferson Regional Medical Center
Lake Region Healthcare
Little Company of Mary Hospital and Health Care Center
Meriter Health Services
Prairie Lakes Healthcare System
Rice Memorial Hospital
Ridgeview Medical Center
Silver Cross Hospital Corporation
St. Clair Health Corporation
St. Luke’s Hospital of Duluth
St. Peter’s Hospital
Swedish Covenant Hospital
SwedishAmerican Health System Corporation
Trinity Health
Watertown Regional Medical Center
Yampa Valley Medical Center
Class C (3 members)
Bay Area Medical Center (WVHN)
Kingman Regional Medical Center (Mayo)
LifeCare Medical Center (Altru)
UMCSC Membership
Membership
Class
Members
Description
Class A
9
Considered our founding members. Closed to new members. Supply spend was greater than $75M in 2007. Class A
members hold seats on the Board of Managers, Finance, Operations and Clinical Committees. Access to all UMCSC
initiatives.
Class A-1
1
Supply spend is greater than $75M. Holds seats on the Board of Managers, Finance, Operations and Clinical Committee.
Access to all UMCSC initiatives.
Class V
1
Designated class for VHA only. Holds seats on the Board of Managers and Finance Committee. Non-voting member of
Operations & Clinical. Does not transact on UMCSC contracts nor participate in initiatives.
Class B
25
Class C
3
Access to all UMCSC initiatives.
Class CCP (Commodity,
1
Utilized by very large organizations with an annual food, drug and supply spend of $500 million. CCP members only
participate in only Commodity and Clinical Preference contracts of the UMCSC. Non-voting member of Finance and the
Board. Right to attend Operations and Board meetings for discussion and vote related to CCP categories only.
0
The UMCSC’s 2.0 Strategy offers innovative practices, products and services to address health care industry and
membership needs beyond sourcing and contracting. This model was approved for non-member hospitals and health care
systems that wish to participate in designated 2.0 Strategy initiatives.
Clinical Preference)
Class S
(Specialty Services)
11 |
Participates in committees through designated cohort. Access to all UMCSC initiatives.
Governance
12 |
Governing Bodies: The Board & Committee Structure
CEOs & Senior
Executives (quarterly)
Supply Chain
Leaders (monthly)
CFOs (quarterly)
13 | VHA Inc. Confidential information.
Representatives
from Board and
Committees
(quarterly)
Physicians & Value
Analysis Leaders
(quarterly)
Key Member Behaviors
Our members:

Make decisions collectively based on what is best for the network as a whole, rather than individually for their
organization.

Commit to aggregating volume and market share.

Participate in Mayo Clinic and Novation sourcing and contracting strategy.

Hold each other accountable for delivering upon commitments to the UMCSC. (Active member participation in
governance structure, enforcement of penalties for non-compliance)

Participate in innovation that drives value.
Key Member Behaviors:
Our members:

Create a single voice during the sourcing and contracting process. Members refrain from negotiating local or
individual agreements on behalf of their respective organization.

Quiet Period: Applies to new initiatives (products/services) placed on the bid calendar. (More information
available in the Quiet Period Guidelines/Policy.)

Prohibition: Applies to existing initiatives (products/services) that are part of the UMCSC contract / services
portfolio.

Ensure confidentiality of UMCSC pricing, strategy and market intelligence.
Key Supplier Behaviors:
• Be aware of the calendar
• Respond to requests from CPMs and Analysts
• Develop creative ideas for structuring contracts
• Honor the Quiet Period Guidelines
• Work through addendum or custom templates in the requested timeline
• Ensure pricing is loaded in a timely manner when notified of member participation – direct or through distribution
• Work with members on conversion assistance, education
• Be conversion and utilization experts – don’t sell, help members to utilize the agreements to the fullest extent
Category Compliance | Spend Requirements
Members are obligated to purchase from the UMCSC portfolio annually as described below.
Members may choose which contracts to participate as long as Spend
Requirement/Category Compliance commitments are met.
The below illustrates the % of spend required in each of the UMCSC categories and how
compliant members are in achieving the spend requirement.
Spend Requirement Performance
A Member
Category
17 |
B Member
C Member
Spend Required
2014 Compliance
Spend Required
2014 Compliance
Spend Required
2014 Compliance
Commodity Items
90%
100%
85%
103%
80%
84%
Clinical Preference
80%
84%
75%
93%
70%
80%
Physician Preference
25%
77%
20%
83%
15%
64%
Members Individual Contractual Commitments
When our members commit to an initiative, they
commit to:
 The UMCSC as a network
 Its members
 Its suppliers
 The market
Our commitments are considered legal obligations
and members unable to uphold their commitments
are subject to terms set forth.
Upholding our contract commitments protects our
network’s brand and buying power and impacts all
present and future value for the members of the
UMCSC.
18 |
Our Focus:
Collaboration
Opportunity to build, improve and learn with
leading, best-in-class hospitals.
Members are equitable partners in:
Governance
Process
Structure
Suppliers are respected partners with
shared risk and reward.
19 |
Our Focus:
Culture of Excellence & Change Capability
Member
Stakeholders
Clinicians
Industry Experts
Sourcing, Contracting,
Analytics, Business
Development, Supply Chain,
Suppliers
Together we are streamlining the value analysis process, implementing
clinical leading practices, participating in shared problem solving and
designing new and innovative approaches that promote change and a
culture of excellence.
20 |
Category Management – Mayo Clinic
Barket Ali, Mayo, Director of Medical
Device Contracting
Nancy Wobig, Mayo, Director of Med,
Surg, Lab Contracting
21 |
Our Focus:
Sourcing & Contracting
– Increasing efficiencies and reducing expenses by aggregating spend and
redesigning supply chain processes through collective decision making.
Reduce product cost
through Sourcing &
Contracting
Reduce acquisition
cost beyond cost /
price of product
Reduce member
infrastructure cost
Improve top-line
revenue &
performance
– Improving product standardization and optimize product utilization
through unique contract strategies
– Achieving value by demonstrating commitment by moving market share,
meeting spend requirements and collaborating; protecting the UMCSC
and member brand in the market.
22 |
Member Voice Opportunities & Roles
The UMCSC provides several opportunities to network with other members and
provide input in programs and contracts that deliver the best clinical and
financial value. The following are typical member roles of the UMCSC to ensure
successful program and contract adoption.





23 |
Committee Members
Committee Representatives
Champion (for 2.0 Strategy Initiatives)
Misc. Operational & Clinical Stakeholders
Subject Matter Experts
UMCSC Contracting Process – High Level View W/O SME
24 |
UMCSC Contracting Process – High Level View W/SME (Medical Device Team aka PPI)
25 |
The 5i Category Management Process
The Category Management contracting process is a 5
step business improvement process that is founded
upon the principles of change management and
incorporates well proven strategic purchasing tools and
techniques required to determine and implement
effective sourcing strategies.
The 5i’s are
• Initiation
• Insight
• Innovation
• Implementation
• Improvement
The UMCSC Contracting Process
Stage 1:
Stage 2:
Stage 3:
Stage 4:
initiation
insight
innovation
implementation
Initiative Placed on Bid
Calendar based on
member and
sourcing/contracting
input.
Quiet Period Begins
Stakeholder Analysis
Members identify
stakeholders relative to this
category (ie-Value Analysis
Teams, Subject Matter
Experts (SMEs), Champions
etc.
Data Gathering
Strategy Development
Market Readiness
CPM and analyst assess
supplier positioning
Source Plan developed
by CPM
Member Readiness
 Subject Matter Expert
(SME) Panels held and
clinical feedback
gathered.


RFP Developed and
Released
Preliminary Analysis
Additional member
stakeholders are
engaged as needed.
Member feedback
provided to Clinical and
Operations Committee.
Strategy Direction
The 5i process is © Positive Purchasing Ltd 2012, adapted and licensed for use in
Mayo Clinic. 5i is a registered trademark of Positive Purchasing Ltd.
Member Readiness:
• Preliminary Savings
shared
Negotiation
Implementation Planning
Supplier Selection & Final
Approval Process:
• Operations Committee
approval
• Supplier(s) awarded.
Contract Launch
Quiet Period Ends
Stage 5:
improvement
Compliance & Quality
Monitoring
Initiatives are monitored
for commitment
compliance, issues,
product adds, recalls,
etc. for minimum of one
year post contract
launch.
Category Compliance,
Contract Compliance
and Spend
Requirement
Performance reports
are published.
Improvement Planning
Medical Device Team - Category Management Stages
Stage 1:
Stage 2:
Stage 3:
Stage 4:
initiation
insight
innovation
implementation
(Scope, Gate
Analysis, Placed
on Bid Calendar,
Stakeholder
Analysis, STP,
Contract Planning
Form)
Vascular
Closure Devices
Power Tools
Neurosurgical
Implants
(Data Gathering,
Market Readiness,
Member Readiness I
including SME
Panel)
(Strategy
Development,
Source Plan, RFP
Development &
Release,
Preliminary
Analysis)
Radiopharmaceutical
Distribution
 Perfusion
Disposable
 Peripheral
Vascular*
 Bone Cement*
Spine Implants*
 Coronary Supplies *
Hemostasis
 CRM*
(more info on these
initiatives coming
soon)
(Member
Readiness II
including
Preliminary
Savings,
Implementation
Planning,
Negotiation,
Supplier Selection,
Contract Launch)
 Total Joints
Advance Energy
 Heart Valves &
Rings
Surgical Mesh
(B&S)
 Endovascular
Repair
Electrophysiolog
y
Ophthalmology
29
* 2.0 Strategy: Aggregate Commitment
Stage 5:
improvement
(Compliance,
Improvement
Planning)
 Interventional
Urology
 Trauma
Implants
 Endomechanical
s
 Pelvic
Reconstruction
 GI Lab
Accessories
 Neuro
Intervention
 Cranial
Maxillofacial
Owners of the Process
Contract Portfolio Managers (CPM)
iDAC (Integrated Data & Contracting) team
Clinical and Contract Subject Matter Experts (SME)
Analysts (Mayo and VHAUM)
Mayo Clinical Quality Value Analysis (CQVA)
UMCSC member/owners
Suppliers
Stage 1 -- Initiation
Contracting Team Work
:
• Plan for the initiative: Set goals and targets, gather data, etc.
• Review total spend for category
• Establish savings targets
• Develop strategy: Sole, dual or multi-source; Renew or rebid
• Notify suppliers and members of Quiet Period, Phase 1
Supplier Expectations:
• Be aware of the calendar
• Respond to requests for information from CPMs and/or Analysts
• Identify key contact for interaction
• Respond to Request For Information (RFI) completely
Quiet Period Phases
Phase 1:
Preparation
Phase 2:
Notification
Quarterly Calendar
Approved
Initiative RFP Released
Permitted To:
• Conduct Product Trials
• Make Product Changes
• Finalize Local Negotiations in
Process
• Standardize Products
Permitted To:
• Make Limited Product
Changes
Not Permitted To:
• Initiate Supplier Negotiations
• Engage in Price Discussions
• Distribute Local RFP
• Change Contract Commitment
Not Permitted To :
• Initiate Supplier Negotiations
• Engage in Price Discussions
• Distribute Local RFP
• Change Contract Commitment
• Conduct Product Trials, Unless
Approved by Clinical
Committee
• Standardize Products
Average 26 Weeks Within Phase
Average 19 Weeks Within Phase
Phase 3:
Approval
Initiative Approved by
Operations Committee
Permitted To:
• Conduct Product Trials
• Make Product Changes
• Standardize Products
Not Permitted To :
• Initiate Supplier Negotiations
• Engage in Price Discussions
• Distribute Local RFP
• Change Contract Commitment
Phase 4:
Quiet Period Lifted
Contract Launch
Permitted To:
• Conduct Business as Usual
• Submit eLOC
• Begin Product Conversions
Not Permitted To :
• Negotiate with UMCSC
Awarded Suppliers
(Prohibition)
Average 6 Weeks Within Phase
Prohibition Applies During All Quiet Period Phases
* New Member Joining UMCSC – Work with CPM to Phase into Contracting Cycle
32 |
Stage 2 -- Insight
Contracting Team Work:
•
Begin Value Analysis process, SME process and supplier assessment
•
Solicit and gather Clinical feedback from UMCSC members
•
Gather Market Share and benchmarking data
•
Issue Request for Enhancement (RFE) and/or Request For Proposal (RFP)
Supplier Expectations:
•
Develop creative ideas for structuring contracts
•
Respond to requests from value analysis and/or analysts for cross reference or product
information
•
Complete response to RFE/RFP request in timeline requested
•
Honor Quiet Period
Subject Matter Expert Panel
Subject Matter Expert (SME) Panel Participant
34 |
•
An expert in a particular area of focus engaged to participate in a panel discussion (ie:
kick-off meeting, video/teleconferences etc.)
•
Contributes clinical and professional expertise to the contracting process, assuring that
quality, safety, and practical factors are appropriately considered.
•
Assists in the development and completion of the Clinical Feedback Form and
response to inquiries that assist in the development of the contracting strategy.
•
Participates in implementation planning as needed.
Stage 3 -- Innovation
Contracting Team Work
•
Collaborate with business partners: Novation, UMCSC members, Mayo stakeholders
•
Begin negotiations with suppliers
•
Evaluate supplier(s) proposal(s)
•
Identify business risk and conversion implications
Supplier Expectations
•
Provide value above and beyond existing market pricing
•
Be creative with value proposals, including rebates, etc.
•
Continue to work on addendum or custom agreement templates
•
Respond to any questions from CPMs or Analysts in timely manner
Stage 4 -- Implementation
Contracting Team Work:
•
Present proposal for award to UMCSC Ops Committee for vote
•
Upon approval, notify Suppliers of result of vote
•
Finalize final price file and gain approval from supplier
•
Complete addendum language and move to signature
•
Launch contract to members upon signature
•
Lift Quiet Period to members and suppliers
Supplier Expectations:
•
Approve final price file, complete addendum and obtain signatures in a timely manner
•
Load and/or send price files to distributors as e-LOC reports are received
•
Contact participating members with assistance in product education, conversion assistance, etc.
•
Meet with participating members to determine baseline spend for rebates, future contract
compliance, etc.
Step 5 -- Improvement
Contracting Team Work:
•
Manage compliance through business reviews and supplier communications
•
Track supplier performance through member communication and communicate to
supplier
•
Facilitate communication between members and suppliers and distribution partners as
needed
Supplier Expectations:
•
Be conversion & utilization experts
•
Assist members in product education
•
Assist members in best practice efforts
•
Understand member reimbursement challenges
•
Provide additional value through utilization/operational efficiencies
UMCSC Analytics
Amber Trelstad
Manager, Supply Chain Management
Operations
UMCSC Analytics Requests to Suppliers
• Request for Information (RFI)
• UMCSC Member Data Requests
• Price File
• Cross Reference
• FOSS Pricing (Final Offer from Selected Supplier)
39 |
RFI and UMCSC Member Data Requests
Requested 6 – 9 months prior to member approval
Request for Information
•
UMCSC member sales
•
Product listing
•
Cross reference
•
Categorization
•
Product portfolio overview
UMCSC Member Data
•
UMCSC member data is not in invoice history or invoice history does not represent current
purchases
•
Examples:
•
Hearing Aids
•
Total Joint Implants
•
Pelvic Reconstruction
•
Third Party Instrument and Scope Repair
•
Occurs in 5% of initiatives
40 |
Price File, Cross Reference and FOSS Price File
Price File and Cross Reference
•
Requested 3 - 5 months prior to member approval. Included in the Request for Proposal (RFP)
•
Member participation and pricing request
•
Proposed pricing for RFP
•
Current UMCSC Products and New UMCSC Products
•
Obsolete Products
•
Unit of Measure (UOM)
•
Cross reference
•
Request contains all products that UMCSC members purchased in the past 12 months
FOSS Price File
•
Requested 1 week after member approval
•
Final pricing for contract
•
Current Products and New Products
•
Obsolete Products
41 |
Story Time
42 |
Instructions
Hotlines
1.800.whyisthisbabystillcrying
1.800.isthisnormal
1.800.callgrandma
1.800.HELPMEPLEASE
43 |
Key Takeaways
•
Complete ALL information requested
•
Supplier Instructions
•
Analyst email and phone number
44 |
Supplier Communications
Justin Albers, UMCSC Operations Manager
Topics
Rebate Notification
Membership Updates
eLOC & Participation Notices
Rebate Notification
Notice of Rebate Period Ending
•
Suppliers notified via email that rebate period has ended for UMCSC agreement
•
Intent of notice to alert suppliers to initiate rebate calculation and payment
•
Information included in notice: Contract detail, Rebate Instruction, Report Template, and
current UMCSC Membership
Supplier Action
47 |
•
Completion of rebate template to be returned to UMCSC by Due Date listed in Notice
•
Ensure appropriate documentation and supporting backup is accompanied with all rebate
payments directly to IDNs
•
W9s should be collected directly from each organization
Rebate Notification
Notice of Rebate Due
•
Suppliers notified via email that rebate is due for UMCSC agreement
•
Typically 30/60/90 days from when rebate period ended
Supplier Action
•
Rebate Report returned to UMCSC with all required fields completed
•
Checks and Supporting Documentation distributed directly to member:
•
48 |
•
1 rebate check per IDN
•
Sales reporting by facility to allow IDNs to accurately allocate rebate
If the rebate has not been distributed, provide an explanation as well as an estimated date
when the rebate will be paid and report completed
Rebate Notification
Example of Completed Rebate Tracker
49 |
Membership
UMCSC Membership Update Notice
•
Suppliers notified monthly on Membership Updates via email
•
UMCSC Membership tab lists ALL facilities
•
UMCSC Membership Additions tab lists all facilities added to member IDNs during
current month
Supplier Action
•
It is the expectation that suppliers review membership additions and extend
pricing to new facilities on all contracts that the parent IDN has declared
Participating via Contract Participation Report
•
Suppliers transmit pricing and eligibility to distributors.
50 |
Membership
Example of Monthly Membership Addition
September '15 Additions to UMCSC Membership
SYSTEM ID
SYSTEM NAME
MEMBER ID
NAME
ADDRESS1
CITY
STATE
ZIP CODE
GLN
46
Boulder Community Hospital
2457376
Boulder Community ECT Department
1155 Alpine Ave Ste 385
Boulder
CO
80304-3422
1100009348970
72014
Excela Health
2459121
EH Womens Prenatal Clinic
870 Weatherwood Ln Ste 3
Greensburg
PA
15601-5899
75245
Mayo Clinic
2456946
Mayo Clinic Building
5881 E Mayo Blvd
Phoenix
AZ
85054
1100008773889
37396
NCH Healthcare System
2457112
Bonita Cardiac Rehab
3306 Bonita Beach Rd
Bonita Springs
FL
34134-4174
1100009342411
37396
NCH Healthcare System
2457111
NCH Northeast Freestanding Ed
15420 Collier Blvd
Naples
FL
34120
1100009342404
3667
North Memorial Health Care
2451977
North Memorial Clinic - Downtown
651 Nicollet Mall
Minneapolis
MN
55402-1667
1100009335833
871561
Sanford
2451463
Sanford Children's Broadway Clinic
737 Broadway N
Fargo
ND
58102-4421
769900
Sparrow Health System
111903
Sparrow Ramblewood Imaging Center
1575 Ramblewood Dr Ste 100
East Lansing
MI
48823
39661
ThedaCare Inc.
2451693
CHN Ortho Sport East
191 Memorial Dr
Berlin
WI
54923-1241
39661
ThedaCare Inc.
2276548
Gold Cross Ambulance Service Inc
1055 Wittmann Dr
Menasha
WI
54952
39661
ThedaCare Inc.
2457501
TCP Ortho Plus Rheumatology
200 Theda Clark Plaza Ste 350
Neenah
WI
54956
51 |
DEA
BT7017393
1100009342381
AG8471536
eLOC and Participation Reports
Participation Reports
•
Members are required to complete eLOC for ALL UMCSC contracts
•
eLOC submitted by members online via the UMCSC website
•
eLOC submitted at the IDN level on behalf of organization
•
Participation Report illustrates the previous week's updates eLOC receipts and displays
signatory and tier information (if applicable)
•
Notices are sent to suppliers each week ONLY when updates to the LOC information are made
in the previous week.
Supplier Action
•
•
•
52 |
When member declares Participation (P). UMCSC contract pricing and eligibility is loaded for
all facilities under IDN
Complete member detail can be found on ‘UMCSC Membership’ tab delivered via Monthly
Membership Update email
Participation report to be used in conjunction with Membership Update to extend UMCSC
pricing to new UMCSC facilities
eLOC and Participation Reports
Example of Supplier Participation Report
53 |
UMCSC 2.0
Marge Trautwein, Sr. Director
What is 1.0?
1.0 refers to traditional areas of sourcing and
contracting
• commodities
• clinical preference
• physician preference
55 |
UMCSC 2.0
What is it?
Why 2.0?
How are decisions made?
How do we choose the initiatives?
Current initiatives and how are they doing?
What’s next?
Overview: “What” and “How”
57 |
What is the 2.0 Strategy?
• Ongoing development of innovative products and
services
• Deliver value outside traditional sourcing and
contracting (1.0 Strategy)
58 |
2.0 Objectives
• Focus on product and service consumption
• Create efficiencies by affecting functions beyond sourcing and
•
•
•
•
contracting
Unlock value by operating functions previously performed by
suppliers and members
Pursue value of all kinds ($ savings, labor savings, better
outcomes, etc.)
Achieve improvements together that are improbable when
systems act alone
4:1 return
How are 2.0 initiatives selected?
The Business Development Committee (member
representatives from UMCSC committees) harvests
ideas and insights from suppliers, members and health
care industry experts for further development and
modeling.
60 |
61 |
Journey……….
First Group of Initiatives - 2.0
Task Force and PMO Office
……..Down to 10, then to 7
Business Development Committee and
March Board 2014 Session
….Narrowing to 25
2.0 vs. 1.0 Initiative Differences
1. Waivers
2. Champions
3. Participation Requirements
4. Business Plan
5. Committee(s) Review
6. Board Approval
63 |
Current Initiatives
64 |
Blood Management
Align UMCSC clinical behavior with nationally-recommended
guidelines for blood use
Custom Procedure Trays
Program that drives value and improves efficiencies by sharing
information and working across organizational boundaries
Data Sharing
Information-based product for suppliers and the UMCSC
65 |
Employee Pharmacy Benefit Management (PBM)
Improve employee PBM terms for self-insured employer
Medical Device Reprocessing
Program with targeted reprocessing utilization and waste reduction
Pharmacy Price Management
Improved pharmacy (non-prescribing) supply
chain management
66 |
Third Party Instrument & Scope Repair
Program targets reduction in the total cost of surgical
instrumentation and scope ownership
Aggregate Contract Commitments
Deliver value above and beyond individual commitments,
require additional member and UMCSC investments for
success, and have control points to ensure progress and
benefits
67 |
How are They Doing?
68 |
What’s Next?
69 |
Next Group of Potential 2.0 Initiatives
Cardiac Rhythm Management (CRM) Utilization and Remote
Monitoring
Reduce total cost of care
Food Sourcing
Leverage cost of groceries and consumables
Laboratory Services Transformation
Transactional to total cost of care
Pharmacy – Compounding
Optimize cost, risk and compliance
70 |
Next Group of Potential 2.0 Initiatives
Pharmacy – Specialty
Improve management of care and delivery of specialty medications
Population Health
Integrated informatics’ focus
Supply Chain Innovation
Focus of reduced manufacturing & operational costs, inventory,
and logistics
71 |
72 |
Data Sharing
Bruce Mairose
73 |
UMCSC Data Sharing Services
New data sharing service
•
•
•
•
•
A component of the overall of UMCSC 2.0 strategy
Foundation of service is access to data at the line item level
Available for all contracted suppliers
UMCSC is partnering with aptitude to develop this and even
greater functionality
Initial offering toward a longer term vision
2015 © UMCSC confidential
UMCSC reveal ™
account management (phase 1)
• The new data sharing service establishes a direct line into
the UMCSC supply chain for contracted suppliers
• Provides insight into contract performance for both the
UMCSC as a group as well as its members
• Supplier can better understand current, historical and future
market share, based on purchasing trends of the group,
members and facilities
• Includes access to a resource to help with onboarding & on
going adoption
2015 © UMCSC confidential
Data share - rankings (trends)
Look at high-level
utilization by system,
geography and bed size
2015 © UMCSC confidential
Overview of UMCSC reveal – Account
Management
Select from list of all
active contracts with
the UMCSC
See / download high-level
contract details including
past, present and future
market share %
2015 © UMCSC confidential
Data share - sub category
Tab format allows
for further drilling
into contract details
Review at sub-category
level to know how much of
your product is being
purchased by whom
2015 © UMCSC confidential
Data share - competition
Understand competitive
market share and which
products are being
purchased
2015 © UMCSC confidential
UMCSC reveal ™
account management (phase 1)
How do I sign up?
Talk to the two gentlemen here today from aptitude
- Justin Hibbs
- Dan Ellis
Walk you through the process
Answer any questions
2015 © UMCSC confidential
2016 UMCSC Contracting Initiatives – 1.0
82 |
My UMCSC contract is expiring! What should I do?
Renew it? Rebid it? Extend it?
Below lists the basic rationale that the Sourcing and Contracting Team utilizes in determining contracting strategy. The criteria is not clear cut
and is actually a blend of several factors.
• Member Satisfaction – Have there been complaints about the current supplier, service or products?
• Competitive Pricing – Does the market necessitate regular rebidding in order to maintain best price?
• Value Achievement – Has the anticipated value of the current contract been achieved? What new value could be achieved?
• Lost Opportunity Factors – Will there be value left behind if rebidding the contract doesn’t happen?
• Market/Clinical Practice Dynamics – Are the products proprietary? Has there been new technology, a new supplier entry into the market,
significant market share changes, or a clinical practice change?
• Supplier Strategic Alignment – Is there benefit to award a ‘family’ of products to gain value for the alliance? Could this supplier become a
partner to the alliance?
• Member Compliance – Are participating members, in general, meeting contract compliance?
• Conversion Fatigue – Has this clinical area been faced with several conversions recently? Could they do another?
Market dynamics and priorities are something that are constantly changing. In the end, determining strategy is a judgment call that is
recommended to the Operations Committee and vetted as a group.
Renew / Rebid / Extend
(continued)
Definitions:
Renew – An existing contract has reached the expiration date and at the recommendation of the CPM and
approval from the Operations Committee will remain with the current supplier(s). A Renewal requires a new
contract, allowing changes in terms and conditions, pricing, products or any change to the original contract’s
intent. Members may change commitment participation and new UMCSC LOC will be created.
Rebid – An existing contract has reached the expiration date and at the recommendation of the CPM and
approval from the Operations Committee a competitive bid process for that product category will be conducted,
soliciting pricing from current Novation contracted suppliers. Award strategies includes sole award, dual award,
or multi awarded contracts. A Rebid requires a new contract, negotiating terms and conditions, pricing and
products. Members will declare participation and UMCSC LOC will be created.
Extend - An existing contract has reached the expiration date. At the recommendation of the CPM and approval
from the Operations Committee, the contract is extended to allow more time for either Subject Matter Expert
(SME) process, Clinical Quality Value Analysis (CQVA) process, or thorough analytical processes to occur. An
extension may also be required to align strategies with Novation’s contracting team.
UMCSC 1.0 INITIATIVE LIST FOR 2016‡
PRODUCT CATEGORY
UMCSC CATEGORY
PRODUCT CATEGORY
UMCSC CATEGORY
BOWEL MANAGEMENT
CLINICAL PREFERENCE
DISPOSABLE OR ACCESSORIES
COMMODITY
ABG KITS
CLINICAL PREFERENCE
FALLS MANAGEMENT
COMMODITY
CASTING AND SPLINTING
CLINICAL PREFERENCE
HOUSEKEEPING CHEMICALS
COMMODITY
CLOSED SUCTION CATHETERS
CLINICAL PREFERENCE
PATIENT FOOTWEAR
COMMODITY
DEVICE SECUREMENT
CLINICAL PREFERENCE
SOFT TISSUE BIOPSY NEEDLES
COMMODITY
DISPOSABLE INFUSION PUMPS
CLINICAL PREFERENCE
SPECIALTY BAGS
COMMODITY
EQUIPMENT COVERS & ROOM TURNOVER KITS
CLINICAL PREFERENCE
STANDARD TEXTILES
COMMODITY
EXAM GLOVES
CLINICAL PREFERENCE
STERILIZATION & DISINFECTING SOLUTIONS
COMMODITY
FLOWMETERS & REGULATORS
CLINICAL PREFERENCE
SUCTION CANISTERS
COMMODITY
HAND HELD SURGICAL INSTRUMENTS
CLINICAL PREFERENCE
SUCTION TUBING
COMMODITY
NON-TUNNELED CENTRAL VENOUS CATHETERS
CLINICAL PREFERENCE
SURFACE DISINFECTING WIPES
COMMODITY
OPEN SUCTION CATHETERS
PATIENT SKIN CARE
CLINICAL PREFERENCE
THERMAL PACKS
COMMODITY
CLINICAL PREFERENCE
TOURNIQUETS
COMMODITY
RESPIRATORY THERAPY - NON-INVASIVE VENTILATION CLINICAL PREFERENCE
RESPIRATORY THERAPY - MEDICATION DELIVERY
DEVICES
ARTHROSCOPY / SPORTS MED
MEDICAL DEVICES
RESPIRATORY THERAPY - RESPIRATORY DISPOSABLES CLINICAL PREFERENCE
COCHLEAR IMPLANTS AND BONE ANCHORED DEVICES
MEDICAL DEVICES
RESPIRATORY THERAPY - DISPOSABLE MANUAL
RESUSCITATORS
CLINICAL PREFERENCE
HEARING AIDS
MEDICAL DEVICES
STOMA CARE
CLINICAL PREFERENCE
MEDICAL DEVICES
SURGICAL CLIPPERS
CLINICAL PREFERENCE
LAPAROSCOPIC IRRIGATION
NEURO INTERVENTIONAL PRODUCTS & ACCESSORIES
SURGICAL SCRUB BRUSHES
CLINICAL PREFERENCE
MEDICAL DEVICES
TRACHEOSTOMY TUBES
CLINICAL PREFERENCE
NEUROSURGICAL IMPLANTS
PELVIC RECONSTRUCTION
URINARY CATHETERS
CLINICAL PREFERENCE
PERIPHERAL VASCULAR
MEDICAL DEVICES
WOUND DRAINAGE
CLINICAL PREFERENCE
POWER TOOLS
MEDICAL DEVICES
SURGICAL GLOVES
MEDICAL DEVICES
MEDICAL DEVICES
MEDICAL DEVICES
DOCUMENT DESTRUCTION
ADD'L PRODUCTS - SERVICES
TOTAL JOINTS
MEDICAL DEVICES
CLOSED SYSTEM TRANSFER DEVICES
ADD'L PRODUCTS - PHARMACY
VASCULAR CLOSURE DEVICES
MEDICAL DEVICES
INITIATIVES MOVED FROM 2015
NEW INITIATIVES
85 |
CLINICAL PREFERENCE