bill stankiewicz copy scope 2010 r oi company model

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* * * CONFIDENTIAL * * * © Resource Optimization & Innovation, an Operating Division of Sisters of Mercy Health System. Creation January 2010.

Integration As A Better ModelApril 2010

John Black, VP of Supply Chain

Greg Goddard, Director of Operations

2


Agenda

Mercy Overview

Issues Facing Providers

Understanding the Issues

ROi Model – An Approach to Solutions

Keys to Vendor Compliance – Less is More

Opportunities and Solutions – Our Approach to Integration

Staying Ahead – Where do We Go From Here?

National Recognition

3


Mercy OverviewProfile

Member Facilities

Operating Revenue

Co-workers

Medical Staff

Uncompensated Care

Beds

26 acute care hospitals

3 heart hospitals

1 rehab hospital

$3.9 Billion

36,900

4,650

(incl. 1,235 integrated physicians)

$208.0 million

4,379 licensed beds (3,638 acute)

Information current for Fiscal Year 2009, ending June 2009

8h Largest Catholic health system in U.S.

27th Largest health system in U.S.

4


Facilities

Co-workers

•Corporate Office – St. Louis

•Consolidated Services Center –

Springfield, MO

300 FTEs from varied clinical and

business disciplines

MISSION: to improve clinical, operational and financial performance of our customers through a clinically integrated supply chain.

Supply Chain Management Consolidated Services Center

Inventory Management

Pharmaceutical Repackaging

Custom Procedure Tray Manufacturing

Purchasing

Customer Service

Transportation Management

Print Operations

Group Purchasing Supply and Pharmaceutical Contracting

Capital Equipment Contracting

Contract Compliance Monitoring

Rebate Management

Pricing Administration

Member Services

Performance Consulting Clinical Support Service

Patient Care Services

Operational Support Services

Mercy OverviewROi Structure

FOCUS & DIRECTION:

▶ Leverage Infrastructure – Reduce Costs, Increase Service

▶ Reduce Variation – Product Selection/Use and Process

▶ Improve Value – Improve Revenue and Reduce Cost

5


ROi’s Mission: Drive Value to Members Through Supply Chain

Mercy OverviewValue of the Whole > the Sum of its Components

Supply Chain(Service)

GPO:(Cost Control)

Performance Consulting:

(Clinical Integration)

Components…

Consulting:

Alignment w/ cliniciansProcess ImprovementData Analysis

Group Purchasing:

Item File ManagementPrice ControlPhysician & Commodity

Contracting

Supply Chain:Distribution operationsMMISPharmacy Repackaging.

Together…

Improved Clinical Alignment, Abilities and Outcomes

Lower Costs, Better Control

Improved Service & Information

6


Mercy OverviewTop 10 Facts About ROi …

Most visited Provider Based Supply Chain model in the U.S.

8th largest GPO in the U.S. – 1,500 members

ROi has the 2nd highest compliance and $/bed penetration in the U.S.

Top 10 volume Medical distributor in the U.S.

ROi is the first provider-based organization to build and operate an

FDA registered custom pack manufacturing operation

CSC repackages 4.4 million unit dose pharmaceuticals per year

Supply Chain defects 75% better than industry average (5σ quality)

99% fill rate (next day, first time fill) – best in industry

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Agenda

Mercy Overview








8


Issues Facing ProvidersFacing the “perfect storm”…

Operating costs

increase

Revenues

decline

Economic

recession

Exploding

technology costs

Capital

constraints

Pension funding

concerns

Pension funding

concerns

Growing supply

costsState and

Federal budget

cuts

Lost investment

portfolio

Growing labor

costs and RN

shortages

Elective services

reduction

Growing bad

debt from

uninsured and

under-insured

Rising costs of

medical errors

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SOURCE: CMS, office of the Actuary, National Health Statistics Group.Note: Breakdown of the top 80% of $2.3 trillion US healthcare spend in 2008

35%

30%

25%

20%

15%

10%

5%

0%Hospital

CarePhysician / Clinical Services

Prescriptions Drugs

Program Admin

Research Structures

and Equipment

30.7%

21.2%

10.0%

6.8% 6.7%

Operating Expenses

Labor…………... 48%

Materials………. 29%

Overhead……... 23%

Nursing Home Care

5.9%

•Labor – materials related

•Materials – all consumables

•Overhead – space, systems,

Issues Facing ProvidersCurrent Trends - Supply Expense

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The Provision of Care

Touch Based Care

2010

2000

1990

1980

1970

COST

High

Low

SUPPLY CHAIN

RELEVANCE

Critical

Incidental

SUPPLY

Disposable

Reusable

Tech

64 Slice CT

X-Ray

Tech Based Care

Supply cost are growing at almost twice the rate of labor*…

*Source: Solucient, “Supply Costs for U.S. Hospitals Show Substantial Three-Year Rise,” Healthcare Financial Management, August 2005; Advisory Board

Growth Database; Clinical Advisory Board interviews.


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July 2009

SMI led program

5 Respected IDN participated

Complete supply spend focus

One question…

“Could Supply Cost Ever Exceed Labor?”

2010 2020 2030 2040 2050

“A”

“B”

“C”

“D”

“E”

Supply Cost Trending Study:

ANSWER: Yes – now what do we do…


http://www.ukhealthcare.uky.edu/index.htm

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Issues Facing ProvidersMoving the Supply Chain Forward

Unsustainability – Cost/complexity of traditional models is not sustainable. Only two essential parties are critical: makers and users.

Homogenization - The lines of GPO’s, Distributor, and Provider Supply Chains will increasingly blur. GPO’s and Distributors will create creative counter measures to abate erosion of market control

Leadership – Providers are not leading. Providers will increase the recruitment of supply chain experts from outside the healthcare industry to infuse new talent.

Marketing beats Science - The rapid growth of technology development will cause spending on supplies and technology to exceed the Providers ability to objectively evaluate and cut cost.

Corporatization - Integrated Providers will begin to adopt a more corporate structure and mentality of management to drive out variation in business and clinical practice.

Profitability Linkage - Successful providers will integrate and link usage and reimbursement data for better decision making.

Integration Candor - Successful providers will increase their candid physicians conversations on their role in cost and quality.

Non-Traditional Integration – Industry/Payors will increase understanding and involvement in the costs and quality of care.

Moving into the Neighborhood – New technology will enable more quality care in the home environment and erode the traditional acute setting.

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Agenda

Mercy Overview








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Understanding the IssuesChallenges with the Traditional Healthcare Supply Chain Model

Manufacturer

Hospital Dock

Patient Use

Healthcare Supply ChainTraditional Challenges

Cost of Distribution

Rising Cost of Supplies

Input on Contract Process

Value Customers Based on

Size and Distance

Lack of Consistent Service

Controlled by Outsiders

Physician Collaboration

Service Levels

Product Selection

Data Management

Silo Management

Limited Best Practice

Sharing

Too Complicated

GPO

Distributor

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Med/Surg Dist.

Lab Mfg.

Pharma Mfg.

Dietary Dist.

Film Mfg.

Lab Dist.

Radiology Dist.

Pharma Dist.

Med/Surg Mfg. Mercy Hospital

Mercy Clinics

Other Hospitals

Other Clinics

Retail Pharmacy

Home Health

Retail

Mass Merc.

Linen Service

Dietary Mfg.

Linen Mfg.

Other???

ISSUE: Complexity

Complexity of product

and information flow

within the traditional

healthcare supply chain.

Understanding the IssuesWhy Did We Change the Model? (The Traditional Model)

ISSUE: Geographical Match

More than 90% of Mercy’s

volume is OUTSIDE of the

traditional distributors hub

distribution service area

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Understanding the IssuesBig Bang or Intelligent Design? (The Traditional Model)

PROVIDERSMANUFACTURER GPO

DISTRIBUTORS

INTERMEDIARIES

Manufacturers pay GPO’s administration fees based on Mercy’s purchases.

GPO’s share back a portion of administration fees to Mercy.

Mercy pays distributors a fee for warehousing and distribution of products.

Manufacturers pay Providers rebates based on GPO contract compliance.

Rebates

Distribution Fees

Admin Shareback

Admin Fees

Admin Fees

Tracing Fees

Bulk Discounts

Channel Fees

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Mfg. Cost ……………….

Mfg. Profit ……………..

Sales Tracing Fees ……………………….…………….

Distribution Cost ………………………………………...

Distribution Profit ………………….……………………..

Transport Profit ………………………………………………………….…….Transport Cost ……………………………………………..………………

TotalDelivered

Cost

Company

A

Company

B

Company

C

GPO Admin Fees ……………………………..

Company

D

Understanding the IssuesThe Anatomy of Supply Cost: The Traditional Model

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Agenda

Mercy Overview








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GPO Admin Fees ……………………………..……………………...

Mfg. Cost ………………………………….……….

Mfg. Profit …………………………….…………..

Sales Tracing Fees ………………………..………………………...Distribution Cost ………………………………

Distribution Profit ……………..

Transport Profit ………………….

Transport Cost ………………….………………

TotalDelivered

Cost

Traditional

ROi ModelExpense Revenue Net Impact

Delivered cost of supplies over and above manufacturer

COG and profit ranges from 14 – 28%

ROi Model – An Approach to SolutionsThe Anatomy of Supply Cost: The ROi Model

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MANUFACTURER

GPO

DISTRIBUTION

Eliminated non-essential supply chain entities (GPO & Distributors)

Captured traditional fees to fund Mercy’s Supply Chain infrastructure while

increasing rebates to SSUs

Increased control and accountability for service and pricing

Established closer link to Manufacturers

Rebates

Admin Fees

Tracing Fees

Bulk Discounts

ROi Model – An Approach to SolutionsSimplicity is Better: The ROi Model

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Med/Surg Dist.

Lab Mfg.

Pharma Mfg.

Dietary Dist.

Film Mfg.

Lab Dist.

Radiology Dist.

Pharma Dist.


Mercy Clinics

Other Hospitals

Other Clinics

Retail Pharmacy

Home Health

Retail

Mass Merc.

Linen Service

Dietary Mfg.

Linen Mfg.

Other???

ISSUE: Complexity





ROi Model – An Approach to SolutionsTraditional Model






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SOLUTION: Complexity

Storage location capable

of handling all healthcare

products in a

consolidated fashion.

SOLUTION: Geographical Match

Central distribution point - More

than 86% of Mercy’s volume is

INSIDE of the ROi distribution

service area

Lab Mfg.

Pharma Mfg.

Film Mfg.

Med/Surg Mfg.

Mercy Hospital

Mercy Clinics

Dietary Mfg.

Linen Mfg.

Storage &

Distribution

Pharma Dist.

ROi Model – An Approach to SolutionsROi Model

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Agenda

Mercy Overview








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Gain consensus

Reduce variability

Promote standardization

Create value

Produce sustainable change

Measure and report results

Provide enterprise leadership

Facilitation

Decision Making

Sustainability

Keys to Vendor Compliance – Less is MoreVendor Compliance Begins with Clinical Collaboration

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Keys to Vendor Compliance – Less is MoreHorizontal Integration

Service Line representatives will have responsibilities for communicating in two distinct directions:

Vertically within their other SSU to other disciplines, other departments, etc. Horizontally across Mercy to their representative “peer” and eventually to

other/future ROi members

SPR STL OKC FTSM ROG HOTS KS

Future

Members

Across the FacilitiesAcross the Facilities

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Keys to Vendor Compliance – Less is MoreThe Results

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Contract Utilization Trend

Aligned for Vendor and Customer Value

Contract

Utilization

2004 2007 2009

ROi Aligned Begins (37.8%)

Current (85.9%)

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ACTION:

38% reduction in number of contracts

194% increase in annual spend under contract

REACTION:

Partner means Partner

Easier to manage

Focused attention

Simplicity and Growth yields alignment of expectations:

Improved Pricing for ROi

Improved Share for Vendors

600

500

400

300

200

100

0

2002 2008

557

405

Number of Contracts

$0

Annual Contract Spend

2002 2008

Mill

ion

$160$100

$200

$300

$400

$500

$470

Keys to Vendor Compliance – Less is MoreThe Results

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7,745 pharmaceutical items utilized

529 used in all SSU’s

Keys to Vendor Compliance – Less is MoreBefore: Variation in SKU’s

0

500

1000

1500

2000

2500

3000

3500

1 SSU2 SSU

3 SSU4 SSU

5 SSU6 SSU

7 SSU

1 SSU 2 SSU 3 SSU 4 SSU 5 SSU 6 SSU 7 SSU

Number of Items 3028 1719 958 632 480 399 529

% of Items Common 39.1% 22.2% 12.4% 8.2% 6.2% 5.2% 6.8%

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3,500 pharmaceutical items utilized

1,700 used in all SSU’s

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Before

After

Before After

Number of items 7,745 3,500

Number of items in common across all SSU's

529 1,700

Keys to Vendor Compliance – Less is MoreAfter: Variation in SKU’s

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Objective:

Create a system-wide formulary for

pharmaceutical products to reduce variation and

yield clinical, operational, and financial benefit

for Mercy

Goals:

65% reduction in SKU’s by end of year 2

Reduce cost by $2 million by end of Year 1 & an

additional $1 million by end of year 2

Enterprise adoption of therapeutic interchange

in 3 categories in year 1

Key Attributes:

Corporately Supported (Sr. Leadership)

Integrated Governance – DOP, Physicians, ROi

Physician Led

Evidence based – White Papers

Objective - Metrics Driven

Sustainability built into process

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

GOAL

3,500

2007 2008 2009 +

SKU Reduction

$4.0

$3.5

$3.0

$2.5

$2.0

$1.5

$1.0

$0.5

$0

GOAL

$3.00

COST Reduction

Mil

lio

ns

2007 2008 2009 +

Keys to Vendor Compliance – Less is MoreThe Results – Enterprise Formulary

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ROi Guiding Principles

Involvement of Stakeholders…

Creation of Value…

Keep Our Word…

Simple to Understand…

…Highly Effective When Done Well

Keys to Vendor Compliance – Less is MoreHow We Do It!

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Agenda

Mercy Overview








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MAKE BUY PARTNER

Our approach to every opportunity…

Key Questions: ▶ Are current commercial offerings aligned with our needs?

▶ Can we justify the expense of the commercial offering?

▶ Is the need strategic to our business?

▶ Can commercial offerings be modified to deliver expected results?

▶ Do we have the scale to justify an internally developed offering?

▶ Do we have the time to deliver an exceptional internal offering?

▶ Can we resource an internal offering to exceed commercial standards?

Opportunities and SolutionsOur Approach to Integration

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Med/Surg Dist.

Lab Mfg.

Pharma Mfg.

Dietary Dist.

Film Mfg.

Lab Dist.

Radiology Dist.

Pharma Dist.


Mercy Clinics

Other Hospitals

Other Clinics

Retail Pharmacy

Home Health

Retail

Mass Merc.

Linen Service

Dietary Mfg.

Linen Mfg.

Other???

ISSUE: Complexity










Opportunities and SolutionsOpportunity

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Springfield, MO

101,000 Square Feet

Climate controlled

Refrigerated Storage

Frozen Storage

Controlled Substance Cage and Vault

Suitable for all Healthcare supply storage

needs in one facility

Pharmaceutical Repackaging Operation

Customer Service Operations Center

Private Fleet (60+ vehicles)

Reduction in transportation expense by leveraging existing fleet and reducing third party transportation expenses

Shortened Order Cycle to 12 hours or less

66% increase in acute care Med/Surg deliveries

42% Reduction in hospital inventory

Elimination of 3,000 material service failures (stock-outs) per week

Opportunities and SolutionsSolution: MAKE

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Each stocked product targets

service levels of 100% with next

day delivery without expedited

freight expenses.

We can leverage our entire volume

through a single point to drive the

lowest price in the market.

Each stocked product is proven to

be clinically acceptable by the vast

majority of users.

94% of all traditionally distributed

products are now currently

sourced through the CSC.

MISSION RESULTS

Service levels from the CSC are at

99.1%; our results are almost 10%

higher than performance from

traditional med/surg distributors.

Products sourced through the

CSC have no direct distribution

or transportation fees.

37


Stocking Logic Definition:A mathematic process used to determine the

product sourcing origin.

Revenue / Savings Expenses Velocity Unit of Measure

Opportunities and SolutionsSolution: MAKEAsset Utilization

Determining What’s Stocked and What’s Not

Stocking Logic Categorical Algorithms:

38


Stocking Logic – Example #1

Stock


39


Stocking Logic – Example #2

Not Stock


40


Stocking Logic Objective Finding the right balance


41


Balance = Ability

20% 21% 10%

Driving Value Through Space Utilization

49%


42


Call to Action - IOM Study (1999) revealing significant patient safety issues

• Medical errors were the 8th leading cause of death in the United States

• More deaths than motor vehicle accidents, breast cancer or AIDS

• 7,000 deaths per year from medication errors alone

• Adverse events cost the United States approximately $37.6 billion each year

• Approximately $17 billion of those costs are associated with preventable errors

Institute of Medicine, Committee on Quality of Health Care in America. To Err is Human: Building a Safer Health System, Washington, D.C.,

National Academy Press; 1999

Opportunities and SolutionsOpportunity: Patient Safety

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The Goals:

▶Reduce medication administration errors

▶Integrate Pharmacy into clinical care

delivery team

The Action:

▶Prioritized clinical quality efforts

▶Determined target area of focus

▶Gained commitment

▶Engaged stakeholders

▶Constructed repackaging infrastructure

▶Standardized hospital-based infrastructure

Opportunities and SolutionsSolution: PARTNER/MAKE

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http://www.omnicell.com/default.asp

http://www.bridgemedical.com/index.shtml

http://www.amerisource.com/

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System-wide implications estimated based on number of beds

10% of medication events (excluding wrong time administrations) result in potential Adverse Drug Events (Archives of Internal Medicine,Vol. 162, Sep 9, 2002)

Medication Error

Type

Potential Prevented

Events (6 mo sample)

Prevented

Administration Rate

Annual System-

wide Implication

Wrong Dose 967 99% 153,548

Wrong Patient 35 100% 5,556

Wrong Route 120 100% 19,050

Total 1,122 99.1% 178,154

Potential Adverse Drug Events Avoided (10%) 17,815

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$584,000$718,000

40 Days

30 Days

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Current State Proposed State

An

nu

al

Rep

air

Exp

en

se

0

5

10

15

20

25

30

35

40

45

Serv

ice D

ays p

er

Mo

nth

Expense Service Days

Opportunity:

– Inconsistent service

levels, provided by 7

vendors, with varying cost

points lead ROi to

consider internalization

Solution: BUY/PARTNER

– Unique partnership with

Instrument Repair

company yields:

• 2 dedicated vans with 3

drivers, reporting to ROi

• Service standardization

across all facilities - 33%

overall increase in service

days

• 20% decrease in cost

Opportunities and SolutionsSurgical Instrument Repair

48


Why Self Manufacture Custom Packs?

Product waste

Lack of standardization

Lack of vendor trust

Excessive cost and inconsistent pricing

Opportunities and SolutionsOpportunity: Product Waste and Program Control

49


Rationale: Elimination of Unauthorized Substitutions

Elimination of Low Quality Components

Standardization Opportunity

Transparent Cost Structure - Elimination of Vendor Trust Issues

Appropriate Use – Elimination of Under/Over Utilization

Lower Total Cost Solution


50


Up-front customer input to assure buy-in.

Identical or improved product in all cases.

Focus on specification not brand.

Reduces variation and proliferation of SKU’s.

Local, regional, national, international sourcing strategy.

Pride in ownership of brand.

Reduces non-value added cost of products (marketing & sales).

Significant value to Mercy through price reduction.

$12 million in annual spend today , doubling every year.

Double digit savings… every time

Opportunities and SolutionsPrivate Label

51


What is Really Important…Three Fundamental Goals of Decision Making…

Good PatientOutcomes

PositiveBottom Line

HappyCare Givers

52


Agenda

Mercy Overview








53


Makers of

goods

Users of

goods

Supply Chain

Manufacturing

WarehousingGPO’sDistributors

Transportation

Backorder

Management

ERP SystemsElectronic Data

Interchange

Inventory

Management

Pipeline

Visibility

Revenue /

Expense

Management

Purchasing

Supply

Chain

Staying AheadConnecting the Links

54


Source: Average of group as per public company financials.

14.1%

HEALTHCARE RETAIL

27.6%

Opportunity(13.5%)

Healthcare Retail

Staying AheadExternal – Driving Volume, Leveraging Partnerships

http://www.apple.com/retail/onetoone/

http://www.hospira.com/

http://www.kimberly-clark.com/

http://www.jnj.com/index.jsp

http://www.gsk.com/index.htm

http://www.ge.com/index.html

http://www.dell.com/content/default.aspx?c=us&l=en&s=gen

http://www.motorola.com/

http://www.google.com/imgres?imgurl=http://www.specpage.com/stuff/contentmgr/files/28/794ebfacf3c32c467c1bc8dfc658bb5b/logo/1108.gif&imgrefurl=http://www.specpage.com/specpage/products.php%3Fmfr%3D50050%26page%3D7&h=300&w=600&sz=5&tbnid=uqcKN_Kog78J::&tbnh=68&tbnw=135&prev=/images%3Fq%3DInternational%2Bpaper%2Blogo&hl=en&sa=X&oi=image_result&resnum=1&ct=image&cd=1

http://www.google.com/imgres?imgurl=http://www.supersibs.org/images/kraft_logo.gif&imgrefurl=http://www.supersibs.org/aboutUs_partners.html&h=621&w=1562&sz=43&tbnid=IAz3Ea7c5OQJ::&tbnh=60&tbnw=150&prev=/images%3Fq%3Dkraft%2Blogo&hl=en&sa=X&oi=image_result&resnum=1&ct=image&cd=1

http://www.brandsoftheworld.com/download/brand/145398.html








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$50

$45

$40

$35

$30

$25

$20

$15

$10

$5

$0

Tax/Other (7.1%)

SG&A (32.0%)

R&D (11.3%)

COGS (29.8%)

NI (19.8%)

SOURCE: Vendor financials as reported in Reuters ProVestor Plus Company Report, December 27, 2009

Observations:

▶ Our largest vendors SG&A is…▶2.8 X R&D▶1.1 X COGS▶1.6 X Net Income

▶ Mercy spent $13,892,100 for a vendor to sell us your products…

▶ Only 2 of Mercy’s 23 hospitals make more Net Income than the vendors SG&A from our business.

Spend Breakdown of Mercy

$43,426,000

$12.6

$5.3

$14.6

$2.1

$8.8

Are we the problem?

SG&A is a reflection of

what it takes to get the

product to the customer

We have the ability to

impact this line – let us...


56


$1.00

$0.90

$0.80

$0.70

$0.60

$0.50

$0.40

$0.30

$0.20

$0.10

$0.00

R&D (13%)

Sales & Marketing (13%)

Royalties (7%)

Device Cost (15%)

Profit (2%)

Typical $1 of Spinal Device Revenue

G&A (12%)

Inv. Set Depreciation (7%)

Source: information provided by Spine Vendor

50 cents

dedicated to

selling us the

product

Rep Comp (25%)

Air Freight (2%)Taxes (4%)

9 cents dedicated

to avoidable cost


57


Use ItMove ItStore ItPackage ItMake ItSource It

GPO Broker Manufacturer Packager Distributor Transporter Provider Payor

Contract It Pay For It

Advise It

Wrap Up…

Consultant

▶ 5th Largest GPO in US

▶ $670 million under contract

▶ 300+ contracts

▶ Most compliant GPO in US

▶ Single Negotiation

▶ 1st Provider based Private Label program in US

▶ $4 million annually

▶ Growing interest with other providers

▶ International focus

▶ Demonstrated results in reducing cost

▶ Aggregated buying events

▶ Efficiency based sourcing

▶ Provider Integration

▶ Largest Provider based CPT manufacturing operation in US.

▶ FDA Registered

▶ Rx Unit Dose Repackaging

▶ Top 10 Volume Distributor according to HIDA

▶ Med/Surg

▶ Rx

▶ Office

▶ 60+ Vehicles

▶ +500,000 miles per year

▶ Every location every day

▶ Back-haul common carrier

▶ Courier, TL and LTL

▶ 20 Hospitals in four states

▶ 28th largest health system

▶ 4,379 beds

▶ 1,100 integrated physicians

▶ $4 B in assets

▶ $3.9 B in op. Revenue

▶ Operation in 3 states

▶ Over 150,000 members

▶ Nationally Recognized Disease Management Programs

▶ Incorporated in 1994

▶ GPO Design & Operations

▶ Product Standardization

▶ Medication Safety

▶ Formulary Management

▶ Sustainability Metrics

▶ Maximization of Integrated Model

▶ Distribution Design & Operations

▶ Smart Pump Implementation

▶ Antibiotic Stewardship

58


Agenda

Mercy Overview








59


Most Wired Supply Chain Innovator Award Finalist 2006

NCI Supply Chain Innovator of the Year Award 2006 – One of three providers highlighted

Winner – Council of Supply Chain Management Professionals – Supply Chain Innovation Award 2006 (October 2006)

Winner – GHXcellence 2007 Award for Large Providers (April 2007)

Winner – FierceHealthcare Innovator of the Year (May 2007)

HFMA / AHRMM – Breaking down Barriers: Achieving a High Performance Finance/Supply Chain Team (May 2007) – Highlighted Large Provider

Winner – GHX 2008 Innovator of the Year

IDN Summit Peer Award Winner (April 2009)


http://www.dow.com/

http://www.hp.com/cgi-bin/sbso/exit.cgi?goto=hp/index

http://images.google.com/imgres?imgurl=http://www.nutrsci.uiuc.edu/images/NS%2520Symposium%2520Sponsors/kelloggs_logo.jpg&imgrefurl=http://www.nutrsci.uiuc.edu/graduate_programs/annual_nutrition_symposium.html&h=76&w=227&sz=49&hl=en&start=7&tbnid=ZtCMDTbki2ZWXM:&tbnh=36&tbnw=108&prev=/images%3Fq%3Dkellogg%2Blogo%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://portal.ku.edu.tr/~systemslab/hs/homepage_files/logo_ibm.jpg&imgrefurl=http://portal.ku.edu.tr/~systemslab/hs/&h=399&w=757&sz=82&hl=en&start=2&tbnid=0waQiMlVpKQvfM:&tbnh=75&tbnw=142&prev=/images%3Fq%3Dibm%2Blogo%26gbv%3D2%26hl%3Den

http://www.pg.com/en_US/index.jhtml

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#2 Overall

#1 Provider

#1 GPO

#1 Distributor

Healthcare Top 25 Supply Chains

http://www.amrresearch.com/default.aspx

bill stankiewicz copy scope 2010 r oi company model

Documents

mercy health system

operating division of

largest health system

mercy overview value

supply chain model

agenda mercy overview

supply chain gpo

issues roi model