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hand trauma inventory they were able to assess individual facility performance. Then they dissected every step in the workflow at each facility, starting from the surgical procedure through product order placement and receipt, mapping and analyzing where errors and gaps might surface. They compared process maps between facilities to design a single, standard, centralized process for each stock-keeping unit and set up controlled ordering parameters for needed items. Five months after launch, the pilot facili- ties reduced excess trauma inventory by $357,000 and order processing time across the organization by 38 hours per week.


Hackensack Meridian Health, Hackensack, NJ


www.hackensackmeridianhealth.org Six years ago, this New Jersey health system was awash in a high volume of manual orders and discrepancies and during the next few years the Supply Chain team set out to achieve the “Perfect Purchase Order” in electronic transac- tions to replace standard clerical tasks with more strategic activities. Since that time Supply Chain has been able to drive down price discrepancies to below 1 per- cent and part number variances to less than 0.2 percent. Further, they corrected issues in 85 percent of paper invoices and in 92 percent of electronic invoices. Using paper and electronic data interchange (EDI) automation at a rate of 91 percent, the health system approaches touchless invoice processing maturity, all while adding two new facilities to the group that were new to EDI order automation. Hackensack also achieved a single item master, billing master and chargemaster for the health system, electronically clos- ing the loop on costs, billing and revenue.


integrated service center for its facili- ties. Equipped with a robotic picking system and conveyor belts, IU Health’s Supply Chain flagship will consolidate warehousing and shipping operations for its 16 hospitals and other healthcare facilities, serving as the logistics hub for the system in managing streamlined daily deliveries. From this hub, IU Health’s Supply Chain team launched a product standardization program, driven by value-analysis teams involv- ing physicians and other clinicians. Through these efforts Supply Chain expects to generate up to $3 million in annual cost reductions. IU Health also ratcheted up its pursuit of process automation via an electronic contract management system that helped them reduce price exceptions to 0.8 percent, as well as generating four-way match- ing, from contract to purchase order to receipt to invoice. Next, they’re convert- ing to Oracle’s cloud-based enterprise resource planning (ERP) system to reach their next cost-savings targets.


also is integrating inventory manage- ment into clinical practices throughout its system to track product consumption patterns and use data mining to advise clinicians on linking supply usage to clinical and patient outcomes. Track- ing starts the moment supplies arrive at the dock to the moment they reach the patient within the patient room or surgical suite.


Parkview Health, Fort Wayne, IN Mount Sinai Health System, New York Indiana University Health, Indianapolis


iuhealth.org Back in the summer, IU Health, formerly known as Clarian Health Partners, generated headlines when it became the latest IDN to venture out with a 300,000-square-foot high-tech


www.mountsinai.org This New York-based health system started out as a large urban medical center that has experienced rampant growth through mergers and acquisi- tions within the last five years. Ac- companying such rapid growth are disparate Supply Chain and Accounts Payable operations and related technol- ogies, including four different materials management information systems. The disparity drove Supply Chain to con- centrate heavily on price exceptions and manually correcting item master data. So they rolled up their sleeves, consoli- dated and modernized processes and technologies, reconciling discrepancies and improving their financial fluidity. Through these labor-and time-saving efforts they estimate savings in distribu- tor volume alone at $387,000 annually. By aggregating contract management data and expanding electronic vendor transactions and content standardiza- tion they were able to increase contract compliance to 95 percent from below 60 percent, and reduce their exception rate to less than 1 percent monthly from an average of 12 percent. Supply Chain


12 December 2018 • HEALTHCARE PURCHASING NEWS • hpnonline.com


www.parkview.com This 9-hospital IDN covering north- east Indiana and northwest Ohio em- braced the concept of integrated supply chain workflows, emanating from the consolidated service center it launched in 2011 to help control and manage in- ventory and product usage throughout the system. Since then, Supply Chain has progressed beyond tracking charges and products throughout the hospitals and is concentrating on patient needs outside of the acute care arena. To wit, Parkview is exploring how to work with suppliers and service companies to support patient supply needs at home, with the aim to create a Parkview marketplace to capture the cost of care — even if it does not come from the hospital. Their goal? To compile a true “cost to deliver” value without having to house the necessary inventory. Sup- ply Chain, which now is one component of a larger Support Division that also includes Facilities, Real Estate, Food & Nutrition, Environmental Services, Pharmacy, Laundry and Event Center, is focusing on enhancing the end user experience through more connected and technology-driven processes.


Providence St. Joseph Health, Renton, WA www.psjhealth.org


Earlier this year the Supply Chain team at this northwestern-West Coast IDN decided to uproot the traditional model of their organization and send it packing. Out with the functional ap- proach, in with the service-minded and oriented approach that is focused on improving performance and delivering


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