One Month Left to AHRMM10 in Denver

Just realized we are just one month from AHRMM10 in Denver; attendance is up from last year at this time and so hopefully we will see long time friends and make new friends. As a Board member I am excited by this year’s conference in Denver; not only is it in my neck of the woods but the format brings changes from last year. Our Chapter Roundtable session is back to a new time slot to encourage your participation. Sessions are current and geared to bring ACTIONables back to your organization.

The AHRMM conferences are a great way to kick start more involvement in our Supply Chain Profession. Not only can you acquire Continuing Education credits, but you will broaden your professional network, glean from your peer’s experiences and even decide to become more involved in AHRMM. The changes in governance, in that once you meet the criteria, may lure you into running for one of the Board seats – you are no longer limited to a geographical region.

Just a glimmer at what’s ahead – hope to see your there at one of the Networking Sessions. Kathi J Pressley, AHRMM Board Member

AHRMM10 at Denver

Hey there everyone!


Summer is quickly approaching and it’s time to start thinking about our upcoming AHRMM conference in Denver Aug 1-4, 2010.

There is still time to register at http://www.ahrmm.org/ahrmm_app/conference/annualconf10/index.jsp

If you haven’t been to Denver before, you’re going to have a blast – Denver is one my favorite cities.

This will be my second AHRMM conference, and I look forward to seeing everyone this year. I will again be sharing my experiences “from the ground” in the AHRMM blog, hopefully with a more seasoned perspective.

After reviewing the brochure, I see the educational tracks will be very informative. Another great thing about AHRMM is learning about the current trends, issues, and best practices from healthcare supply chain colleagues around the country.

I encourage everyone to take advantage of the great networking opportunity and learn from folks from different areas of the supply chain. I personally hope to brush up on the latest in spend analytics, and maybe learn about the impacts of healthcare reform.

Until next time!

Danny

Life After Efficient Healthcare Consumer Response (ECHR)

Today’s webinar offered many of us a chance to take an outside view of healthcare supply chain and look inward. While we have spent the last decade or so working on improving the healthcare supply chain, the focus in this area really didn’t get started until the 1990s.

Starting with a 1996 study, Dr. Heather Nachtmann and Dr. Edward Pohl started researching cost inefficiencies in the healthcare supply chain and identify the opportunities for improvement. They conducted a cost-analysis from top-down and bottom-up to identify $23 Billion in process costs such as inventory management, order management and logistics. The authors also outlined a set of challenges, attempted savings initiatives, and strategic improvements broken into business type (manufacturer, GPO, distributor, provider).

The advent of e-commerce has had the greatest impact not just in healthcare but every major industry. I started working for a GPO in early 2001, and I have witnessed an amazing evolution of EDI order management. It has reduced labor and paper costs, as well as contributed indirectly to an improvement in inventory management. The results of the survey show the increase in e-commerce transactions, which is also one of the top strategic initiatives of the study.

Reviewing the rest of the survey results shows that GPOs have taken a lead on many of the other initiatives, except inventory management, which is the core business of distributors. An important element to remember is that each of the stakeholders are interconnected, and that achieving greater efficiency in each step of supply chain will be better for all.

The good news is that healthcare supply chain continues to gain merit among other parts of the industry, and we have more tools and resources available compared to 1996 that can guide us to faster cost efficiencies.

Academic Webinar: Hospital Supply Chain Management in the Future Healthcare Landscape

Wow – what a daunting task we all have ahead of us – to make sure we better connect all of the stakeholders in the healthcare supply chain to ensure better patient care and eliminate inefficiencies in the system.

Of course this is much easier said than done, but Ken Thomas highlights some great points about looking more globally and prospectively at future healthcare trends. Efficiency should be the goal of every part of the supply chain – from patients to providers to payers. Going forward, a successful healthcare organization will be judged by its performance in supply chain management. While we have various metrics today to rate hospitals, the dynamic nature of the industry will demand much stronger emphasis on efficiency in the supply chain.

At the end of the day, supply chain needs to balance patient care with the business objectives of the organization. I think many of us who have worked with Value Analysis in some capacity try to strike this balance every day. For example, when we try evaluate a safe, efficable product for patient use, we try to negotiate the lowest cost possible with our supply partners.

Ken notes that supply chain performance can actually impact patient care such as timeliness of diagnosis, delivery of therapy, and reduction of secondary effects. He believes that decreasing costs and improving efficiency will result in higher volume in patient care, and thus increasing revenue for an HCO.

I think that depends on the type of hospital and whether it is non-profit or for-profit.
We should have a collaborative patient-centric supply chain that addresses the clinical and non-clinical needs of all stakeholders.

Click here to read more about upcoming Academic Webinars or to order a copy of the Hospital Supply Chain Management in the Future Healthcare Landscape Academic Webinar on CD-ROM.

Academic Webinar: Physician Preference Item Management

I’m sure many of us cringe when we think about physician preference item management. After all, it is one of the toughest areas to focus on in healthcare supply chain.


Natalia Wilson offered a great perspective in this webinar because she has been involved in PPIM research, and is also a practicing clinician.

I could relate to this topic because I am currently working with a Teaching Hospital in Dallas, TX on PPIM in Orthopedics. We have decided to pursue a capitated pricing strategy for total hip implants. We are currently a sole-source, which doesn’t offer much leverage with price negotiations. After meeting with some of the physicians and VP Surgical Services, we have been given permission to “crack the door open” to achieve better pricing. While we realize the docs are not going to switch product, they will at least trial some competitive products to put pressure on our sole-source vendor to provide more savings.


We have followed much of Natalia’s suggested strategy of engaging our internal and external stakeholders, and have been fortunate to receive buy-in from our physicians. Many of you work with well-renowned physicians and do not have the luxury of strong engagement. That is why it is important to understand and support what brings value to your docs.


Natalia also mentioned one of the difficulties of PPIM is access to good data. I cannot stress enough the importance of good data. If nothing else, a physician is more likely to evaluate reports or statistics if they are backed up by supporting information. There are some good tools that can provide dashboards or benchmarking studies such as ECRI, MD Buyline, SpendLINK (UHC) or Spend Compass (Advisory Board).


Looking at the broader view of a PPIM strategy, however, Natalia summarized the evaluation of the following areas:
1) Management within Supply Chain
2) Role of Internal & External Stakeholders
3) Physician Engagement Strategies
4) Education and Communication


While I won’t go into any more detail of each of these, I did want to stress that Executive Support is crucial to Physician Preference Item Management. With the current economic malaise, HCO’s are looking at high cost areas in the supply chain, which may provide opportunities in PPIM that didn’t exist before.

Click here to read more about upcoming Academic Webinars or to order a copy of the Physician Preference Item Management Academic Webinar on CD-ROM.

Academic Webinar: Fundamental Shifts in the US Healthcare System

While most of us are probably focusing on our own functional roles within our organizations, it is easy to forget the big picture issues facing the healthcare supply chain.

Given the complexity of healthcare and the current political climate, I have personally started paying attention to issues and trends that may affect my company and part of the supply chain. I work for a GPO and they are again facing scrutiny from the Senate Subcommittee for supposed anti-competitive business practices. Of course I think any company or sector of healthcare is an easy target if they are large or profitable.

I thought Dr. Singh did a great job of discussing the major shifts (i.e. Demographics, technology changes, physician trends, etc.) that will be evolving over the next several years. One example he discussed was a shifting disease pattern and the continuously increasing cost of treatment. He suggested a shift from acute care to chronic care, which will put even greater strain in the supply chain in the coming years.

Another example that Dr. Singh referenced was a shifting technology focus. “Health care has not witnessed technology cost reduction”. I do not think anyone can necessarily make that generalization. Since I’ve been working with a large hospital in Dallas the past 2 years, I have seen them move from manual, paper-based ordering to utilizing EDI and also upgrading their MMIS system to Lawson. This is a perfect example of how technology has resulted in operational cost reduction.

One of the my biggest takeaways from Dr. Singh’s presentation is that we should all have a 10-15 year view instead of a 2-3 year view, keeping in mind all of the different shifts. We tend to be reactive in our roles instead of proactive. It is amazing what we can learn from someone from the outside looking in.

Click here to read more about upcoming Academic Webinars or to order a copy of the Fundamental Shifts in the US Healthcare System Academic Webinar on CD-ROM.

Academic Webinar - Supply Chains and the Surgical Suite: Measuring the Impact of Best Practices on Financial and Operational Performance

Dr. Vicki Smith-Daniels and Dr. Dwight Smith-Daniels have conducted extensive research into improving the financial and operational performance in the OR suite. One of the main reasons for their research is the lack of empirical evidence in the healthcare supply chain industry. To broaden the scope of their research, they looked at the manufacturing industry for evidence of best practices. Manufacturing uses an evidence-based approach and incorporates practices such as lean manufacturing or Six Sigma.


Measuring performance and quantifying the results is difficult - especially since many healthcare organizations rely on distributors, GPOs and/or consultants to provide tools and resources for performance measurement. In addition, best practices tend to be limited to one hospital provider or system, rather than a group of providers.

The research has shown that some of the important elements of high performance supply chains in the surgical suite include physician engagement, value analysis, analytics, and IS Integration. Clinical collaboration is essential in best practices because the stakeholders include end-users, physicians, as well as supply chain staff.

Through one of the online polls conducted, we learn that two of the greatest factors in surgical suite improvement include inventory monitoring and custom procedure packs. Since the results were taken across several hospital organizations, it allows us to start building evidence toward a best practice.

The presenters stressed that practices over time build capabilities which breed better performance. Successful supply chain strategies will move from short-term focus to long-term sustainability.

Click here to read more about upcoming Academic Webinars or to order a copy of the Supply Chains and the Surgical Suite: Measuring the Impact of Best Practices on Financial and Operational Performance Academic Webinar on CD-ROM.

AHRMM09 - Wednesday, July 22, 2009

Day 4: Yes, it was worth the humidity, the exercise running back and forth and all the words exchanged with vendors, cultivating new friendships and renewing relationships put on hold by distance and business. The highlight of the Buccaneer Bash was definitely the people and the dancing – I think we have an opportunity on the gastronomic side :)

This morning I made new acquaintances while doing my final presentation of the conference. Thanks to all who attended for the comments and insights; it’s nice to know there are others having similar challenges. My final Learning Lab was on the Zen Commute; I saw several many folks I knew including at least five AHRMM Board members listening how to become more mindful and more aware of our paying attention in our daily lives.

AfterBurn – what a great choice for a Closing Session; it was high energy, had concepts that could be readily incorporated into any culture and sent off on our way.

Thank you to all the folks that came up and addressed themselves to me, thank you to new friends, apologies to friends I couldn’t spend more time with but that’s what conferences are all about. Missions accomplished – networking, education, fun and laughter….see you next year in Denver.

AHRMM09 - Wednesday, July 22, 2009

As I prepare for my trip home, I wanted to say what a great conference this was for me as a first-time attendee. One of the last sessions I attended was 'More Best Practices in Materials Management', which really outlined some of the high points for a successful supply chain strategy.

Since this was my first time, I could not gauge what the attendance level was compared to previous years. I am guessing that there may have been a few less attendees after conversations with my peers. I think one of the successes of AHRMM is that the networking and education offered is easily applied into our daily jobs, which really makes the entire span of healthcare a better place. I am glad that the things I've learned and continue to learn in this setting allow me to have a direct impact at my job.

I wanted to say thanks to all of the sponsors, exhibitors, facilitators, and other attendees - everyone working together made this experience worthy of our time. And a special thanks to Tracey Heusner, who let me gab continuously the last few days!

I wish everyone good luck and safe travels - see you next year in Denver!

AHRMM09 - Wednesday, July 22, 2009

I am missing the closing of the conference in order to catch my flight home, so I will give my own closing remarks. (Thanks, no applause, really, thanks . . )

To begin, let me say, what a terrific conference. Benchmarking , evidence based process improvement, if you don't report to your CFO, now is the time to start creating your own report and getting the CFO to notice your contributions, great vendor exhibits, and sharp, informed new contacts are only a portion of what I am taking away with me, back to Cincinnati's Jewish Hospital and our IDN, the Health Alliance. Thank you to the faculty, organizers, vendor sponsors and AHA.

I'm looking forward to AHRMM10 in Denver and may attend whether my hospital pays or not. One of my favorite snippets of information is the ratio of cost of attending to the typical savings in dollars generated by implementing lessons learned: 1:3. Even more exciting is $1 saved in Supply costs can generate overall hospital savings of up to $25. I've got to go now and start implementing, benchmarking, data gathering, report writing . . .

Thanks to Tracey Heusner of AHA. Hope I wasn't to much of a pain. Good luck to all!

AHRMM09 - Tuesday, July 21, 2009

After a full day of supplier exhibit, I noticed the traffic was down a bit as I was working the UHC booth over the lunch hour. I think most folks probably got around to meeting with their suppliers on Monday. I did like the setup for the supplier exhibition because I got to exchange some business cards, and then talk to many reps either at the hotel bar or at the Buccaneer Bash.

Speaking of the Bash, I was happy to see a large turnout. I really didn’t know what to expect since this was my first conference. I was not able to stay for long as my group had dinner reservations, but everyone seemed to be having a good time.

I caught a couple of the morning sessions at the convention center, but took a break in the afternoon to exercise, and catch up on email. I think most of us can relate to full mailbox!
Only half a day left on Wednesday and then it’s back to the real world!

AHRMM09 - Tuesday, July 21, 2009

Day 3:
Whew, such a whirlwind for a newbie Board member. I thank all the current Board and new friends for their support. We started with Leadership Breakfast where 32 chapters and at least 8 committees were honored for their hardwork and dedication. The diverse efforts of all these individuals truly makes our professional associations stand out..

I attended the Physician panel and was gratified to hear the thoughtful questions by AHRMM attendees and sincere responses by the Physician Panel. Nick Sears did a great job as a moderator. It was also interesting to listen to the input from our Member from the United Kingdom. It was truly gratifying to circulate through the vendor fair. “The vendors were appreciative of all attendees visits and most vowed to return to Denver during the first week of August for AHRMM #48. Then I was off to make my presentation on “You’re the Proud Owner of a Brand New or Slightly Used…. Clinic, Service Line, Physician Practice” followed up by Dave Kaczmarek’s presentation challenging us to be Supply Chain Executives by next year. You’re On Dave….

Now I am off to the pool for some sun and then to the Buccaneer Bash. See you there, Kathi

AHRMM09 - Tuesday, July 21, 2009

Who else enjoys AHRMM09 for the vendors exhibits? Meeting the reps, listening to them tell your colleagues about wonders that are their products, services, websites, magazines. Even a simple lunch can be educational, or in my case, therapeutic. I like hearing colleagues have similar problems and stresses.

The conference serves an important function just bringing Supply Chain professionals together to chat and interact.

AHRMM09 - Tuesday, July 21, 2009

AHRMM09 Day two

Eight minutes until the fourth Learning Lab at 7:30 am after a fun night of, how shall I say, networking. Very brieflly: New contacts, new vendors, new opportunities, new ideas.

A great openinng by Ross Shafer. Imagine getting your clients, patients, customers, to love you. What a message! The Supply Chain business continues to develop. Beverly Slate says I need to bring my CFO up to speed on what my Distribution Department can do and how we are crucial to saving bucks for the hospital. Two other learning labs and much, uh, networking, . . . later.

AHRMM09 - Monday, July 20, 2009

Day 2 had us up early for a AHRMM Board photo shoot with our illustrious President winning the JJ Award for being in place last! Our keynote speaker, Ross Shafer, of pet store and news anchor fame, was engaging and amusing. Great Thoughts and illustrations to muse on.

I then attended a Learning Lab – Finance and Materials Management Working Together which provided some new avenues for collaboration with our Patient Charge experts. Then it was off to the Vendor Fair; we are so blessed to have vendor partners to support this Conference. A round table interactive session was my final stop. Here AHRMM affiliates and chapter leaders shared ideas on how to become more successful in a sustainable manner. The new Chapter Leader Resource materials were shared and all participants took away new ideas to enable their chapters to better meet their member needs. Please see the Members section of the http://www.ahrmm.org/.

Then we were off to a host of vendor receptions; thanks for the introductions, great company and snacks. See you all in the am!

AHRMM09 - Monday, July 20, 2009

Wow- I hope everyone had as an eventful day as myself. After finally arriving to the hotel at noon, I quickly proceeded to check-in and attend the supplier exhibition.

It was great catching up with some old colleagues and supply partners. The exhibition was impressive and it was a great mix of providers, suppliers, and GPOs. Lunch was also appreciated after rushing from the airport.

While I missed the opening speaker, the feedback was that Ross Shafer did an outstanding job. I did attend some of the educational sessions and they were both standing-room only. This tells me that the topics are very relevant to what's going on in supply chain.

Tonight several of the exhibitors will be hosting receptions and dinners, which I hope you can attend. (I will be with my UHC colleagues and some our members)

So far it looks like this year's AHRMM is off to a great start-looking forward to the days ahead!

AHRMM09 - Sunday, July 19, 2009

Day 1:Not sure where to start since my first blog got lost in the ozone. It has been a whirlwind here as a “ newbie” Board member. Day 1, Board mentor and friend, Liz V, and I got to play golf at the AHRMM golf tournament. All proceeds from the tournament go towards Project Perfect World and their missions to South America – most recently two spine surgeries and approximately 30 orthopedic surgeries. Very inspiring not to mention a little damp as a thunder and lightening storm passed us by. The tournament was well attended by corporate and individual groups of golfers. Hope to see you next year.

Talk about inspiring; it was very reassuring to meet future AHRMM members and attendees at the New Member Reception. All the AHRMM region representatives sounded off and welcomed new attendees. Jay Kirkpatrick averred that the 47th AHRMM conference being held on the 40th Anniversary of the moon landing was going to be exceptional.

The Main reception followed with attendees bustling around sampling hors d’oevres and introducing themselves to new and more recently met friends. In all too short a time, friends and I hustled off to the President’s Reception where key leaders and vendors socialized. This is one of the perks of volunteerism!

It was a busy first day, only a hint of the next day to follow.

AHRMM09 - Sunday, July 19, 2009

Anticipation

The conference is about to begin. I have my schedule of learning labs, my conference bag, and a cup of coffee. The day promises to be filled with new information, ways of doing things, and new names and faces. This has been coming for a long time. I'm full of questions. In these tough times, will my hospital be willing to innovate? Will my organization be open to the advances I'll bring back from this conference? Will I only be able to apply the learing to my own department and the work we do for our 209 bed hospital? Too soon to tell.

AHRMM09 - Sunday, July 19, 2009

Hello AHRMM attendees,

Welcome to Tampa! While I am actually still in transit, I hope everyone has safe travels. If you are a first time attendee, be sure and attend the New Member Orientation, which starts at 5pm today.

The conference will provide great opportunities for networking, education, and catching up on the latest in healthcare supply chain.

I hope to connect with as many folks as possible. Feel free to contact me claus@uhc.edu.

Introducing James Fothergill

My name is Jim Fothergill. It will be my pleasure to blog as an attendee of AHRMM09. Currently, I am the Manager of Material Distribution for The Jewish Hospital of Cincinnati. My materials background began thirteen years ago when I became the Pharmacy Buyer for that same hospital. Prior to that I was a Pharmacy Technician for several years. My current responsibilities include operations management for the medical and surgical supply staff, linen distribution, mailroom operations, and receiving dock operations. Each of these areas includes a bit of IT administration. That brings me to blogging and this opportunity to provide my impressions and observations from this year's conference.

The Director of Supply Chain for our six hospital IDN, The Health Alliance asked me to attend AHRMM09 as a representative. It will be an excellent chance for me to learn from experts and thought leaders who will be presenting the state-of-the-art seminars and other presentations at the conference. Networking and hobnobbing with those same folks along with a plethora of vendors will also be high on my agenda. I have attended a Technology Conference presented by the AHRMM in 2006, in Chicago and took home a great deal of information and learning from it.

If you see me at a seminar or associated event, stop, introduce yourself, and give me some of your impressions.