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WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
March 25, 2014
Cindy Dranttel Vice President WCPC OperationsVHA West Coast Region
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West Coast Purchasing Coalition (WCPC)
2
2011WestPac
WPC
2012
A member owned LLC $2B in Spend
Commitment, Innovation, Growth
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WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
3
1 Antelope Valley Hospital Lancaster CA
2 Cedars-Sinai Health System Los Angeles CA
3 Citrus Valley Medical Center Covina CA
4
Community Hospital of the Monterey
Peninsula Monterey CA
5
Community Memorial Hosital of San
Buenaventura Ventura CA
6 Cottage Health System
Santa
Barbara CA
7 Doctors Medical Center San Pablo CA
8 Grays Harbor Community Hospital Aberdeen WA
9 John Muir Health
Walnut
Creek CA
10 NorthBay Healthcare Fairfield CA
11 Palomar Health Escondido CA
12 PIH Health Whittier CA
13
Pomona Valley Hospital Medical
Center Pomona CA
14 Redlands Community Hospital Redlands CA
15 Scottsdale Healthcare Scottsdale AZ
16 Sierra View District Hospital Porterville CA
17 The Queens Medical Center Honolulu HI
18 Torrance Memorial Medical Center Torrance CA
19 Tuality Health Hillsboro OR
20 Tucson Medical Center Tucson AZ
21 ValleyCare Health System Pleasanton CA
22 Washington Hospital Health System Fremont CA
WCPC: 22 Not-for-Profit Owners
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WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
The New Current Healthcare Environment
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Align physician behavior
Pay for performance
Reduce costs
Measure clinical and supply chain performance
Reimbursement cuts
Provide accountable care
Reduce readmissions
Compete in a new system of health care delivery Hospital Margins are declining…
Executives Report theseTop 3 Areas to Improve in Order to Achieve
Financial Targets
44%
Physician-Hospital Alignment
41%
CostReduction
40%
CareModel
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VHA asked hospital executives what they see as the primary drivers for improving cost, quality and patient experience in their organizations for the next few years.
Top 4 Activities:
Efficiency & Affordability
Source: 2012 VHA Survey of top U.S. Health Care Leaders Large IDN Supply Network
• Process & Workflow Efficiencies71%
• Supply & Services Utilization70%
• Practice Variability Reduction57%
• Physician Preference Cost Reduction43%
WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
VHA West Coast Region
Efficiency and
Affordability
• West Coast Purchasing Coalition (WCPC)
• Regional contract aggregation
• PPI initiatives
• Pharmacy
• Capital
• Purchased Services
• Supply Chain and Operational Cost Reduction
• Labor Cost Management
Clinical Quality and
Patient Safety
• VHA West Coast Patient Experience Collaborative
• Accreditation Services
• Knowledge Transfer and Networking
Care Delivery System Transformation
• Physician Engagement and Alignment
• Continuum of Care Advancement
Leadership Success and Acceleration
• West Coast Board of Directors
• Executive/Management Leadership Development and Networking
• Physician Leadership Development
• Business Development and Regional Growth
Shared Regional Platform
Business Intelligence Platform
PerformanceImprovement Model
VHA West Coast Value Statement
“We harness the collective power of our VHA West Coast members, constantly demonstrating value and driving toward top decile performance.”
W
C
P
C
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WCPC: Commitment to Partnership
7
Spread the work/ Expand your capacity
Do the hard stuff
Time & Attention
Integrating WCPC in our
org.
We AND MeInstead of We vs Me
Trust each other
Sharing Best Practices
Think past “today” –
What’s Next?
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WCPC: Expense Management
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Executive
Oversight
Committee
Operating
Committee
Pharmacy Capital Physician
Preference
Purchased
Services
Scope
Commodity/Clinical
Commodity items
Clinical Preference
Tier Max/RFE/ITC
Best Practices
Scope
Drug Utilization
Drug shortage Program
Oncology
Distribution
Efficiency
Cost
Scope
Construction projects
Routine capital
Small Equipment
Scope
Physician sensitive
Products & Services
Scope
“Commodity” Services
Geographic aggregation
New Services in
Population Health
New Technology
Solutions & Services
Resources
EOC Sponsor
Ops Reps
Clinical Resource
SME as needed
Analytics
Contracting
Tracking
Monitoring
Resources
EOC Sponsor
Ops Rep
Pharm D Lead
Pharmacy Assmt
Analytics
Contracting
Tracking
Monitoring
Resources
EOC Sponsor
Ops Rep.
VHA Capital Experts
Hospital SMEs Analytics
Contracting
Tracking
Monitoring
Resources
EOC Sponsor
Ops Rep.
Clinical Lead
Physician Leads
SMEs as needed
Analytics/benchmarks
Contracting
Tracking
Monitoring
Resources
EOC Sponsor
Ops Rep.
Member SMEs
Analytics
Contracting
Tracking
Monitoring
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WCPC: Our Long Term Strategy
• Using more evidence based/clinical data
+ Physician/Clinician alignment with the network
+ Standardized Network Rx Formulary
+ Standardized Network Med/Surg Formulary
• Centralized contracting for Purchased Services
• Standardized value analysis: Process, Date/Time, etc.
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+ Alignment with other Networks
+ Establish performance metric baseline and goals
• Define goals around Revenue Enhancement
• Feasibility study for “Consolidated Services Center” (CSC) model
• Member satisfaction scores are 90+
+ In Process • Not Started
Board &
EOC Roles
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10
WCPC: Efficiency & Affordability
Aggregate Volume to
leverage per unit price
Committed Volume plus
standardization of supplies
Utilization of products to drive down
costs
Total cost of care focused-based on clinical effectiveness
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NetworkValue A
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Network Value
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Network Value
To
tal C
ost
of
Ca
re
Network Value
Network value increases dramatically as the focus shifts to clinical utilization and the total cost of care.
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WCPC: Expense Management Trend
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Percentage of Network Activity
71%
62%
34%
13%
9%
20%
9%
7%
4%
4%
22%
42%
Percentage of Total Network Spend
Purple = National
Red = WCPC 2012
Green = WCPC 2013
Network Total Spend
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WCPC: 2014 Strategies and Programs
• Increase savings for members
• Increase ROI for members
• Expand scope to untouched areas of opportunity
• Appropriate Use, Total cost of care, Utilization
• Identify and utilize new innovative approaches to Speed to Value
– Aptitude, Reverse Auction, Shared Analytics Program
• Strategic Collaborations with other Networks
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WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
WCPC: Effective & Cohesive
Journal of Healthcare Contracting, February 2014, pp11-12
WCPC Confidential Information - For use by WCPC Participating Member onlyVHA Inc. Confidential Information
WCPC Management Team
Rick BarnettExecutive VP VHA West Coast Region, WCPC President
Cindy Dranttel VP, VHA West Coast Region , WCPC Operations Exec
Don Stutsman Supply Networks Director, WCPC Operations
Peggy Jenkins Sr Director Supply Networks
Mike Noel Pharmacy Network Implementation Manager
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