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| ISH Services |
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| Supply Chain Management |
| Strengthen
Your Organization’s Financial Position with
real Medical/Surgical Product Cost Savings, Revenue
Maximization and IT Improvements Healthcare
executives in the U.S. have never faced greater
financial pressures. The combined challenges of
decreasing reimbursements and increasing costs
are challenging organizations with the increasingly
difficult task of achieving financial improvements.
The cost savings opportunities that are associated
with business process management and the new ERP
systems all rely on a foundation of valid data.
It is the ongoing management of that data that
is key to realizing cost savings and maximizing
revenues in the acquisition and use of medical/surgical
product. Since supply expense constitutes approximately
25 to 30 percent of a hospital’s spend,
it is a logical and primary target for financial
savings. By focusing on the categories below,
our research shows that health systems can improve
approximately: |
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| Pricing Normalization |
3% of Total Spend |
| GPO Contract Maximization |
2% of Total Spend |
| Non-Contract Items |
10% of Non-contract Spend |
| Standardization |
`2% of Total Spend |
| Reimbursement of Chargeable Supplies |
4% of Total Supply Charges |
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Added
to the financial challenges are the onset of new
federal regulations, diminishing reimbursement
schedules and complex labor management issues.
Decisions must be made quickly and accurately.
While the primary focus of all healthcare facilities
is patient care, the enablers are revenue enhancement
and cost containment. One of the primary ways
to recognize these is through process improvement
initiatives.
The ISH team of Supply Chain Management professionals
works with healthcare executives to build an organization
that will focus on driving the excess costs out
of the Supply Chain, thus freeing up those dollars
for the improvement of patient care. Utilizing
best of breed software, process improvement strategies
and our proprietary Value-Add programs, your organization
can realize true return on your IT-investment.
Our Supply Chain Management professionals are
highly experienced in both healthcare operations
and the systems that increase efficiency within
this key area. They are experienced and certified
through the leading vendors including Lawson and
McKesson.
Critical Success Factors within the Supply
Chain include: |
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Accounts
Payable |
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Reduction of lost discounts and unresolved invoice
discrepancies
• Reduction of check requests
• Ability for vendors to look into their
own account to answer questions about status
• Recapturing of lost saving due to poor
processes
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| Contracts
Administration |
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Establishing a failure proof system assuring that
no contracts will expire without your prior knowledge
• Ability to assure that you are receiving
the contract price every time you pay an invoice
• Management of contract compliance rates,
blanket orders and standing orders
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| Distribution |
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Reduction in “touch points” for sounder
processes
• Reduced process costs |
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| Infrastructure |
| Infrastructure
is most often selected as the primary item needed
for a successful Supply Chain to operate. Infrastructure
is about organization and a unified sense of direction
as well as making sure the proper skill sets are
in place The ISH SCM team will help your organization
to: |
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Identify your corporate vision, mission and leadership
• Define the SCM vision, mission and identify
the improvement opportunities as compared to the
“as is” state
• Establish SCM performance requirements
• Establish processes for implementing SCM
improvement
• Select SCM processes and address the enablers
• Develop a change management program |
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| Inventory
Control |
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Accurate information
• Ability to track official and unofficial
inventory including “JIC” (Just In
Case)
• Reduction of “JIC”
• Lowered cost to operations |
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| OR
Inventory Control |
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Usually handled as a periodic inventory asset
• Coordination of Supply Chain Staff with
OR Staff
• Efficient picking for procedures (case
carts)
• Maintenance of proper levels of stock
supplies
• Can include implementation of an OR Information
System and a Case Cart System |
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| OR
Preference Cards |
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Maintenance of up-to-date preference cards
• Elimination of duplicates
• Reduction of excess supplies
• Reduction of excess labor in pulling the
case and in putting supplies back
• Reduction of overall processing costs |
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| The ISH
SCM and Clinical Teams can show you just how this
process can be make more efficient while reducing
overall processing costs. |
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| PAR
Areas |
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Having the right item, at the right price, in
the right quantity, in the right place at the
right time…all the time
• Establishment of fully manual to fully
automated efficient systems
• . Point-of-Use machines have become very
popular as labor saving devices, sending the reorder
quantity automatically and also charging the patient
for the supplies |
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| Purchase
Orders |
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Reduction of incomplete requisitions
• Reduction of time approved contracted
items sit in queue |
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| Receiving |
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Reduction of inaccurate receiving counts
• Improved relationships with primary suppliers
• Implementation of RF Receiving, Advanced
Shipping Notice and other process cost cutting
methodologies |
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| Reports |
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Improved accuracy of financial reports
• Reports organized in a manner that is
easy to analyze
• Ability to do short-period analysis |
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| Requisitions |
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Implementation of automated requisitions
• Reduction of “dwell time”
• Maximum convenience to end users
• Efficient flow of orders |
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| Vendor
Selection |
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Establishment of Vendor Performance Monitoring
• Establishment of strategic alliances with
vendors especially in the areas of JIT (just-in-time),
LUM (Low units of measure) and VMI (Vendor managed
inventory) |
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