building the supply chain of the future...implant/supply vendors increase prices annually, if not...

BUILDING THE SUPPLY CHAIN OF THE FUTURE

2018 New York Metro ASC Symposium

Danilo D’Aprile & Micah McClelland

EVERY SYSTEM IS PERFECTLY DESIGNED TO

ACHIEVE EXACTLY THE

RESULTS IT GETS.

Don Berwick, M.D. CEO of Institute for Healthcare Improvement

"Every system is perfectly designed to achieve exactly the result it gets. If we want better outcomes, we must change something in the system."

RE-DESIGN THE SYSTEM TO ACHIEVE THE RESULTS YOU WANT

Intentional New Design: Mission of the Project

Improve visibility and controls over the procurement and use of inventory in order to reduce operational costs and

improve profit margins

Every system is perfectly designed to

achieve exactly the

results it gets.

8% Savings

533K in Revenue!

~213 New Cases

How Do we Value Cost Savings

Everything you could possibly need

Just the stuff you need - nothing you don’t

Everything you need –bout at a great price

Predictive Purchasing

Real Time Case Costing

Paperless Automation

Perpetual Inventory

The Perfect Quantity - JIT

Just the stuff you need – nothing you dont

Everything you need –bought at a great price

EVERYTHINGYOU COULD POSSIBLY NEED

IDENTIFYING COMMON MISTAKES

1. Not knowing your case costs Benchmarking

Less excess → less waste → less space

2. Inefficient ordering process GPO

Time management

3. Lackluster ASC-Vendor/Distributor relationships Reps should not be strangers

There to help

Relationships with preferred vendors and distributors

1. How do you Order

4. How do you Process Invoices

2. How do you Receive

Key components of a Supply Chain Logistical Analysis

3. How do you Manage Inventory

Supply Chain 101Supply chain begins and ends at the ASC

ASC pays the invoice for product or

service

Maximizing Your GPO

Everything you need –bought at a great price

Predicti

ve Purchasing

Real Time Case Costing

Paperless Automation

Perpetual Inventory

The Perfect Quantity - JIT

Just the stuff you need – nothing you dont

Everything you need –bought at a great price EVERYTHING

YOU COULD POSSIBLY NEED

Vendors: Friend or Foe?

Perpetual Inventory

The Perfect Quantity - JIT

Just the stuff you need – nothing you dont

ctive

Purchasing

Real Time Case Costing

Paperless Automation

Perpetual Inventory

The Perfect Quantity - JIT

Just the stuff you need – nothing you dont

Everything you need –bought at a great price

EVERYTHINGYOU COULD

POSSIBLY NEED

Lack of technology

No data on product &

supply consumption

Difficulty managing

order patterns

Inefficiencies in the ASC

Costs increase

Roadblocks to the Future

Paperless Automation

Case Costing Best Practices

Predictive Purchasing

Real Time Case Costing

PATIENT &PROCEDURE

SPECS

ITEM MASTER PREF CARDS

PRODUCT UTILIZATION /

IMPLANTSCASE DOCUMENT

CASE COSTING

Case Costing Best Practices

Predictive Purchasing

Real Time Case Costing

Case Costing Best Practices

Predictive Purchasing

Real Time Case Costing

Case Costing Best Practices

Items are Ordered & Received

within Hybrent

Hybrent Syncs IM with Real-Time

Updates

Finally Populated, Built and Maintained

with Real-time Information

Hybrent Legacy Item Master Pref Cards & Case Costing

Case Costing Best Practices

Predictive Purchasing

Real Time Case Costing

“As needed” supply chain model aligns supply expenses with volume and revenue

Bottom Line:Balance the Scales

Tackling Rising Costs:Reimbursements Decreasing

Implant/Supply vendors increase prices annually, if not more frequently

Future of supply chain cannot rest on raw cost analysis

Vendors must get competitive

New Concept: Outcome-based model

Similar to CMS’ value-based program concept – rewards for providers with incentive payments on quality of care

Similar to Pharma Industry - if patient outcomes are less favorable, the manufacturer must issue a refund to the health plan

Tying it all into Supply Chain

Concept increases vendor competition on cost and clinical outcomes

Safety

Clinical effectiveness

Standardization →Drives down costs

Call to ActionPredictive

Purchasing

Real Time Case Costing

Paperless Automation

Perpetual Inventory

The Perfect Quantity - JIT

Just the stuff you need –nothing you dont

Everything you need –bought at a great price

EVERYTHINGYOU COULD POSSIBLY NEED

RFP for GPO? 80/20 for top spend

Reduce SKU’s by 10%

Carrying costs cut by 10%

Q card for supplies- Par levels

Review an MMIS

Procedure Per week update