Knowledge Center

This paper explores the application of the Baldrige Excellence Framework to the health care supply chain. Specifically, the paper will explore the reasons that the Baldrige Framework might be used to evaluate and improve supply chain systems and processes. An examination of the need of a systems perspective will be followed by a brief overview of the Baldrige program.

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This Awareness Brief provides a high level summary understanding of value based purchasing. The Hospital Value Based Purchasing (VBP) Program adjusts hospitals’ payments based on their performance in four domains that reflect hospital cost, quality and outcomes. This calendar year, 2016, is the Performance Measurement Period for the FY 2018 VBP Program.

This Awareness Brief provides a quick reference to the Draft Guidance for UDI Convenience Kits, released by the FDA in January 2016. The draft guidance defines the term “convenience kit” for purposes of compliance with UDI labeling and data submission requirements only.

Executive Summary Today’s healthcare environment is rapidly changing. Hospitals and healthcare systems are being bombarded by myriad challenges, including the fluctuating economy, cuts in Medicare reimbursements, and new procedural, financial, and reporting requirements of the Affordable Care Act (ACA). All of these factors are pressuring healthcare organizations to reduce costs and improve patient outcomes without sacrificing the quality of care.

Background: In many locations across the country, cold weather or desert climates create dry environmental conditions.  In order to achieve the higher levels of humidity required by regulatory agencies, hospitals and ambulatory surgery centers have to add humidity into the building air, an activity that is expensive and creates its own unique set of challenges.

A well-conceived strategic sourcing program starts with an analysis of the total spend or operating expenses of the organization utilizing an “ABC” analysis and category/spend segmentation matrix. This analysis allows for the prioritization of the “sourceable” or “manageable” spend as distinct from other expenses such as taxes, depreciation and interest for which different strategies should be effectively applied.

The purpose of this paper is to share lessons learned and successes in contract management. Five years ago, Contract Management consisted of signing a few Letters of Commitment through our Group Purchasing Organization and trying to keep track of them in a three ring notebook.

The initial purpose for developing a socially responsible, closed loop supply chain was to enhance our environmentally sustainable practices by purchasing more responsible and locally sourced products.

The surgical instrument management software (SIM) implementation began in October of 2003 and a Lean initiative to redesign processes began in October 2005. Implementation of all the initial recommendations was not complete until June of 2006.

This is an on-going operational excellence initiative and our results have certainly validated our approach and produced an immediate beneficial impact. The methodology we have implemented truly drives improvements and bottom-line results. We are very proud that the Executive Leadership at our organization has promoted the use of Purchasing’s approach in assessing and managing other areas of the organization.

Increasingly, the hospital and health care delivery system executives are viewing the supply chain as a strategic asset that can be leveraged to meet operational, clinical, and financial performance imperatives. This has not always been the case. For years, the supply chain was seen as little more than a necessary but ancillary function – to buy and deliver products as needed – with the primary supply chain improvement strategy focused on buying those products at the lowest price possible.

This paper provides a case-study on what Banner has done to implement and continuously improve this initiative. Three key components to successful supply utilization savings are reviewed.

This white paper was written as a recap of the AHRMM15 Cost, Quality, and Outcomes (CQO) Summit, held in August of 2015. The paper, which is split into four parts, opens with a review of the CQO Movement and description of activities conducted since its inception in 2013.

This paper examines the journey that an organization travels to arrive at an outsource decision and the challenges that it should be alert to post contract. The Literature Review section provides a context for the recommendations offered in the case study illustration. The recommendations deliberately focus on providing proper governance and oversight during the operational phase after the contract has been awarded and is up and running.

This paper will present health care procurement strategies of four countries - the United States, Botswana, the United Kingdom, and China - as a means to evaluate volume aggregation under different health care delivery models.  

Purchasing in healthcare is largely based on a hierarchical management style. In an experimental case started in 2004, at Floyd Medical Center in Rome, Georgia, this standard was altered. The introduction of a team concept combined with lean manufacturing practices to this traditional purchasing setting was unique. The results of this radical change over the past eight years have been exceptional. The paper describes the steps taken to change the culture, the actions taken to implement lean tools, and the wins achieved by the team.

On August 8, 2011, the Association for Health Care Resource & Materials Management hosted an Executive Thought Leader Event, sponsored by VHA. Held during the AHRMM11 Conference in Boston, Massachusetts, 26 seasoned healthcare supply chain executives discussed a broad range of strategic issues and challenges confronting supply chain executives today.

Jim Smoker, CMRP, MPA, CS, York, Pennsylvania