building the supply chain of the future...implant/supply vendors increase prices annually, if not...
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BUILDING THE SUPPLY CHAIN OF THE FUTURE
2018 New York Metro ASC Symposium
Danilo D’Aprile & Micah McClelland
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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."
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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.
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8% Savings
533K in Revenue!
~213 New Cases
How Do we Value Cost Savings
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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
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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
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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
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Supply Chain 101Supply chain begins and ends at the ASC
ASC pays the invoice for product or
service
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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
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Vendors: Friend or Foe?
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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
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Lack of technology
No data on product &
supply consumption
Difficulty managing
order patterns
Inefficiencies in the ASC
Costs increase
Roadblocks to the Future
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Paperless Automation
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Case Costing Best Practices
Predictive Purchasing
Real Time Case Costing
PATIENT &PROCEDURE
SPECS
ITEM MASTER PREF CARDS
PRODUCT UTILIZATION /
IMPLANTSCASE DOCUMENT
CASE COSTING
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Case Costing Best Practices
Predictive Purchasing
Real Time Case Costing
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Case Costing Best Practices
Predictive Purchasing
Real Time Case Costing
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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
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Case Costing Best Practices
Predictive Purchasing
Real Time Case Costing
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“As needed” supply chain model aligns supply expenses with volume and revenue
Bottom Line:Balance the Scales
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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
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Tying it all into Supply Chain
Concept increases vendor competition on cost and clinical outcomes
Safety
Clinical effectiveness
Standardization →Drives down costs
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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