APRIL2017

New UDI Workgroup Addresses LUM Program ConcernsThe FDA recently delayed its unique device identifier (UDI) compliance deadline for Class II single-use devices to September 24, 2018. While distributors have welcomed this move, questions remain about UDI requirements, particularly for single-use devices distributed through low unit of measure (LUM) inventory programs. To address these concerns, HIDA has formed a UDI workgroup specifically around labeling exceptions for LUM programs. If you would like to learn more about this workgroup or would like to get involved, please contact HIDA Government Affairs Senior Manager Amy Kohl (Kohl@HIDA.org).

Provider Contracting Execs To Detail Pricing Accuracy Challenges, Opportunities

Many providers are placing greater scrutiny on their contract management processes. During HIDA’s Contract Administration Conference (April 19-20, Orlando, FL), David Forbes, Mercy Medical Center (Baltimore, MD), will share how this scrutiny led his organization to redesign their business processes and improve their purchasing. In addition to identifying best practices, he will outline key barriers to progress and areas for further development. Forbes and Brian Zuck, Essentia Health, will also offer a look at providers’ key pricing accuracy challenges and opportunities. To see the agenda and learn more, visit www.HIDA.org/ContractAdmin.

Funding, Managed Care Changes Pose Challenges To Post-Acute Providers

The House of Representatives is considering legislation that will dramatically change how the federal government contributes to state Medicaid programs. This shift poses a unique challenge to post-acute providers, as they receive approximately 63% of their funding from state Medicaid programs. Additionally, more states are turning to managed care companies to implement alternative payment models and improve outcomes. Indiana Medicaid Director Joe Moser, along with Debra Brophy, of the Illinois-based managed care organization IlliniCare, will discuss how these changes will impact post-acute providers in the coming years during HIDA’s upcoming Extended Care Market Conference, May 16-17, Chicago, IL. For more information or to register, visit www.HIDA.org/ExtendedConference.

Payment Changes Likely To Continue Under New AdministrationWhile the new administration and Congress seek to overhaul the U.S. healthcare system, key trends in value-based payments are likely to continue. Additionally, the emphasis on consumerism in healthcare is likely to grow under the new administration. During HIDA’s upcoming Washington Summit (June 6-7, Washington, D.C.), Jonathan Blum, CareFirst, will discuss how payers are reacting to these trends. Additionally, Rep. Greg Walden (R-OR), House Energy and Commerce Committee Chair, will share his insights and political forecast. To see the agenda and learn more, visit www.HIDA.org/Summit.

Millennials Willing To Pay More For Newer Health Technology, Products Millennials are more likely to shop for different providers to manage costs, according to HIDA’s latest infographic, Consumer Demands Are Changing Healthcare. Approximately 34% of Millennials have selected a specific provider due to cost, compared to 24% of all patients, and 21% of Millennials have changed providers to lower their costs, compared to 13% of the general population. Despite this increased cost consciousness, more than half of Millennials will pay more out of their own pockets to visit a provider that offers newer technology and products. To access the infographic, visit www.HIDA.org/Infographics.

Joe Moser State of Indiana

David Forbes Mercy Medical Center

Consumer Demands Are Changing Healthcare

www.HIDA.org

Source: Healthcare Consumerism: Quality and Cost Driving Patient Behavior, Health Industry Distributors Association, 2017

HIDA surveyed 1,000 patients to learn the impact rising expenses have on healthcare decisions. Our Horizon Report, Healthcare Consumerism: Quality and Cost Driving Patient Behavior, provides detailed data on how consumerism is a driving force in healthcare. For more information, visit www.hida.org/HorizonReport.

Patients Want Transparency

“Providers should combine services, and reduce the number of visits when possible, so one charge can cover treatment.”

— Female, Silent Generation, West

“Have a list of the prices for various procedures and visits.”

— Male, Millennial, Midwest

Quality Of Care Cost Of Care Provider Cleanliness/ Infection Prevention

Out-of-Pocket Expenses Increase For Many Patients

Quality Still Matters MostTop 3 Factors That Influence Provider Selection

Half of Millennials will pay more out of their own pockets to visit a provider that offers newer technology and products

Younger Patients More Likely To Shop

To Manage Costs

All Patients Millennials

55%44%

35%

2016 2017

42% 44%

HadIncrease

Expect Increase

24% 34%

13% 21%

Choose A Specific Provider

Changed Providers To Lower Cost

Rep. Greg Walden (R-OR)

Jonathan Blum CareFirst

Brian Zuck Essentia Health

310 Montgomery Street • Alexandria, VA 22314-1516

MARK YOUR CALENDAR FOR OUR UPCOMING EVENTS

AMS Webinar Series: Prospecting And Cold Calling: Getting Your Foot In The Door

Featured Speaker: John CostiganCEO and Founder, Costigan Companies

Acute Care Market Dynamics: Insight From Supply Chain Executives

HIDA Speaker:Gina Smith Director, Business Development

Visit www.HIDA.org/Webinars for additional webinar updates and access to past recordings.

Apr 11 2017

Horizon Report: Consumerism Coming April 2017

Original HIDA research into how patients are taking more ownership of their care.

Infographic: Distributors Reduce PPI Supply Chain CostsLaunched March 2017

A look into how distributors are helping hospitals reduce waste and lower spending.

WEBINARS

In This IssueMillennials Willing To Pay More For Newer Health Technology, Products

New UDI Workgroup Addresses LUM Program Concerns

RESOURCES

Apr 26 2017

September 26–28, 2017Hyatt Regency O’Hare | Chicago, IL

June 6–7, 2017 Hyatt Regency | Washington, DC

May 16–17, 2017Millennium Knickerbocker Hotel | Chicago, IL

Post-Acute | Long-Term Care | Home Care

April 19-20, 2017Reunion Resort | Orlando, FL

For more information or to register visit www.HIDA.org.

Consumerism

2017

Value Is The Driving Force In Patient Behavior

www.HIDA.org

Distributors Reduce PPI Supply Chain Costs

Source: 2017 Acute Care Market Survey, Health Industry Distributors Association

HIDA’s Acute Market Survey of hospital supply chain executives discovered an emerging trend; distributors are successfully helping hospitals reduce costs for physician preference items (PPI). To download the full report, free to HIDA members, go to www.HIDA.org MarketSurveys.

Hospitals Look At New Ways To

Purchase PPI

Nearly Half Have Explored Buying PPI From Distribution

Barriers to Buying PPI From Distributors

Cost Reduction #1 Reason To Switch

Cost Control

Benefits of Buying PPI From Distributors

Reducing Waste In The Supply

Chain

1/3 Said There Were No Barriers

Half Certain They Will Expand This Strategy

Hospitals Highly Satisfied With Purchasing PPI From DistributorsNearly All Satisfied With Decision

No Hospital Is Dissatisfied

Neither Satisfied Nor Dissatisfied

Very Satisfied

Not Sure If They Will Expand

56%SomewhatSatisfied

37%

7%

30%

20%

Will Not Expand

50%Will Expand

Most Who Explored Decided To Buy Some PPI From

Distributors

44% Yes

43%No

13%Not Sure

90%Purchased PPI

From Distributor

10%Not Purchased PPI From Distributor

Poised for Growth

% Of PPI Purchased Through Distributors At Present

19%33%

No Barriers67%Barriers

Executives find implementation

cost is lower than

anticipated

Consumer Demands Are Changing Healthcare

www.HIDA.org

Source: Healthcare Consumerism: Quality and Cost Driving Patient Behavior, Health Industry Distributors Association, 2017

HIDA surveyed 1,000 patients to learn the impact rising expenses have on healthcare decisions. Our Horizon Report, Healthcare Consumerism: Quality and Cost Driving Patient Behavior, provides detailed data on how consumerism is a driving force in healthcare. For more information, visit www.hida.org/HorizonReport.

Patients Want Transparency

“Providers should combine services, and reduce the number of visits when possible, so one charge can cover treatment.”

— Female, Silent Generation, West

“Have a list of the prices for various procedures and visits.”

— Male, Millennial, Midwest

Quality Of Care Cost Of Care Provider Cleanliness/ Infection Prevention

Out-of-Pocket Expenses Increase For Many Patients

Quality Still Matters MostTop 3 Factors That Influence Provider Selection

Half of Millennials will pay more out of their own pockets to visit a provider that offers newer technology and products

Younger Patients More Likely To Shop

To Manage Costs

All Patients Millennials

55%44%

35%

2016 2017

42% 44%

HadIncrease

Expect Increase

24% 34%

13% 21%

Choose A Specific Provider

Changed Providers To Lower Cost