Knowledge Center

Allen Archer, director of supply chain management, Houston Hospitals, Inc., explains the basics of writing a contract including best practices and key tips.

The shift to bundled payments in health care continues to push the supply chain to a more central position in the overall operations and capabilities of progressive health systems.

By: Michael Deluca Download Article

An article from the November/December 2016 issue of the AHRMM member-only magazine, Supply Chain Strategies & Solutions. This article will discuss the shift from technology simply being used to source goods and services (i.e. reverse auctions, electronic RFPs/RFIs, online contract authoring) to how leading-edge technology is now used to enforce compliance and utilization of contracts. Download Article

This article is from the November/December 2016 issue of the AHRMM member-only magazine, Supply Chain Strategies & Solutions. Unlocking individual silos in healthcare organizations is a key step toward delivering the optimal value in patient care at the appropriate cost. Multidisciplinary sourcing teams with the right software platform can elevate the role of healthcare supply chain. The result: stronger negotiating processes with suppliers and better contract terms.

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AHRMM is offering a repository for leading and proven supply chain practices, case studies, and toolkits that are developed from a Cost, Quality, and Outcomes (CQO) perspective. The following CQO leading practice describes methods used to reduce costs, enhance patient care quality, and drive greater financial outcomes through blood product and service optimization, and was submitted by:

HealthTrust recently created the Physician Advisors Program, which is narrowing the chasm between those who purchase products and those who use them. The program solicits physicians’ input on clinical evidence reviews in product categories that have a significant impact on patient care, specifically physician preference items (PPI). Download Article

When I started in supply chain, the position that was presented afforded me the opportunity to utilize my clinical and business skills with the goal to maximize relationships that I had cultivated over the years as a critical care nurse and leader. Healthcare was going through a transformative change with the introduction of diagnosis-related groups (DRGs) and managed care impacting the way hospitals and ultimately physicians would be paid. The job description was for a clinical resource manager—a novel concept at the time.

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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.  

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.

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.

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

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.

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.

The following leading practice describes methods used to reduce Hospital Acquired Pressure Ulcers (HAPU).

The Institute for Healthcare Improvement (IHI) Triple Aim is a framework developed to describe an approach to optimizing health system performance. The Triple Aim calls for:

AHRMM is offering a repository for leading and proven supply chain practices, case studies, and toolkits that are developed from a Cost, Quality, and Outcomes (CQO) perspective. The following CQO leading practice describes methods used to reduce costs, enhance patient care quality, and drive greater financial outcomes through blood product and service optimization, and was submitted by:

AHRMM is offering a repository for leading and proven supply chain practices, case studies, and toolkits that are developed from a Cost, Quality, and Outcomes (CQO) perspective. The following Catheter Acquired Urinary Tract Infections (CAUTI) leading practice was submitted by: Nexera, Inc., New York, NY