Do you know what your IDN customers’ priorities are? Do you, your products and services meet their needs today? How about tomorrow? In the past two issues, Repertoire has offered readers a “crash course” in health system supply chain by presenting a few highlights from the 2019 “Ten People to Watch in Healthcare Contracting,” an annual feature in Repertoire’s sister publication, the Journal of Healthcare Contracting. Here are notes on the final Ten.
John Thompson
Position: Senior Vice President, Sourcing Operations, Vizient Inc., Irving, Texas
In the past two years: “I have been working with certain segments of the Vizient sourcing and consulting teams, such as purchased services and food, [to offer] contracts on the business side of care that can lower costs, and subject matter experts with data, insights and expertise to help with implementation, so that savings are realized and sustained.”
On the docket: “One of our bigger projects is building out our human resources and workforce solutions verticals. Vizient has a comprehensive offering of solutions, such as insurance products and employee benefits, contract labor and labor consulting/utilization.”
Thoughts about the supply chain management profession: “I have been fortunate to have had some extraordinary leaders and mentors who have helped me understand that success in the healthcare supply chain requires a consistent focus on next-generation ideas grounded in historical knowledge. That approach and their coaching have helped me look for opportunities to more effectively engage internal and external stakeholders as the company and the industry have evolved. … I have also become a better listener, which has helped me understand how our stakeholders define value and has reshaped how I partner with them to achieve their goals.”
Future challenge for the profession: “It is critical that supply chain professionals coming into this industry understand how and why decisions are made in their organization, what data is required, who needs to be included in the process, and how to effectively communicate across the organization when decisions affecting supplies and products are made. I encourage supply chain professionals at every level to take advantage of the educational opportunities offered by various organizations to increase understanding of not just the latest technology, but also the strategies that are required to successfully lead change.”
Michael Gray
Position: System Vice President and Chief Supply Chain Officer, SSM Health, St. Louis, Missouri
In the past two years: Consolidated the master data management teams and non-pharma buyers under one management structure. “It has allowed us to be consistent and to provide comprehensive quality data into the Enterprise Resource Planning and Electronic Health Records systems.” Transformed a multiple-purchasing-organization structure within SAP into one systemwide structure, eliminating 124,000 duplicate items. (SSM Health had been operating as three different geographies when SAP was first deployed.)
On the docket: Continuing to work systemwide with physician leaders and others to reduce unnecessary variation in vendors, products, etc. “We should be able to measure which products are used where, and which products lead to favorable outcomes for the majority of patients. It’s exciting getting all these groups together. Rather than calling them ‘value analysis groups,’ I call them ‘solution groups.’”
Thoughts about the supply chain management profession: “The old saying, ‘I know what I’m doing, so let me do it,’ isn’t effective. I’ve never seen an effort where end users, physicians and executive leaders were engaged, and we did not come up with a better result. The input, guidance and insights provided by end users, people in the field and suppliers always make the process better.”
Future challenge for the profession: “[The next generation of supply chain executives] will have to be operationally sound in order to understand the flow of information, products and cash. Managing ‘technology creep’ is probably the biggest challenge going forward. A number of my peers have told me, ‘We have gone through savings initiatives, but those savings instantly disappear when new, more expensive technologies are introduced and integrated into our systems as the ‘next shiny object.’”
Sparkle Barnes
Position: Chief Strategy Officer, Health Center Partners of Southern California, San Diego
In the past two years: Assisted Health Center Partners in the establishment of a clinically integrated network – Integrated Health Partners of Southern California – in June 2015, which is designed to help its community health center members be successful in a value-based model by managing population health, improving efficiencies and performances in managed care and care transitions, integrating data and improving clinical performance, and providing high-quality care to lower income and uninsured patients.
On the docket: Completing a three-year strategic plan by June 30, 2020, which will position the organization to serve an estimated doubling of its membership to more than 10,000 organizations.
Thoughts about the supply chain management profession: “Taking on an enterprise-wide role as chief strategy officer for the Family of Companies was transformational in how I lead CNECT. In the CSO role, I am on the front lines of policy, operational, and clinical decision support discussions in transitioning a care model from fee-for-service to value-based reimbursement, enabling me to bring a perspective and experience from the front-line into CNECT to better position our members.”
Future challenge for the profession: “The transition to value-based care is not slowing down. If anything, it is accelerating. The future generation of supply chain professionals will need to be both experts in their fields and partners with their management teams as those organizations are more and more challenged to improve care quality and [achieve] cost reductions through value-based reimbursement models.”
Todd Larkin
Position: Chief Operating Officer, Intalere, St. Louis, Missouri
In the past two years: “I joined Intalere in the second half of 2017, when the contracting organization was undergoing a transformation, primarily focused on adopting Intermountain’s best practices. One of the most rewarding aspects of that initiative was implementing changes to people, processes, and technology.”
On the docket: “We are constantly focused on improving the competitiveness of our portfolio. However, this doesn’t just mean reduction in the price of a market basket of SKUs. Rather, we’re pulling different value levers [and] capturing and sharing clinical best practices from across our membership. Given our broad and diverse membership, we’re finding that we can capture best practices from throughout the healthcare continuum and share that information across our client base.”
Thoughts about the supply chain management profession: “I’ve been fortunate to work with some very talented people I’ve learned from. One of the key aspects I’ve focused on is building strategic plans across categories of spend and working with senior executives to find the best way my team can support their strategic initiatives. I think the key is to view every day as an opportunity to reflect and learn something new. It’s also important to constantly focus on what value you can provide and how that’s aligned with the larger goals of the organization.”
Future challenge for the profession: “The next generation will need to … be relentless in driving change. There is a lot of resistance to change in healthcare, and it’s understandable when you have potential impact on patients’ lives. However, the next generation [cannot] become frustrated as they try to implement these new concepts and innovations. They’ve got to be relentless in helping to transform healthcare and capture the value of these new approaches and innovations.”