Editor’s note: Do you know what your IDN customers’ priorities are? Do you, your products and services meet their needs today? How about tomorrow? Repertoire offers 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.
Adrian Wengert
Position: Vice president, supply chain and procurement, Saint Luke’s Health System, Boise, Idaho
In the past two years: “We completely overhauled the supply chain department – added 17 FTEs; deployed category management; and changed GPOs, distributors and wholesaler, which put $60 million in savings to the bottom line for our health system. We recognized that category management would provide a structured approach to supply spend, purchased services, IT and more. It would allow us to gain insights and drive alignment with our stakeholders.”
On the docket: “We are completing the feasibility study to build a consolidated service center to improve cost, quality and our capabilities.”
Thoughts on the practice of supply chain management: “To be a great supply chain practitioner, you need to be well-versed in process improvement, project management and data analysis. To be a great servant leader, you need to use influence and develop meaningful relationships to build trust and sustain results.”
Future challenge for the profession: “Supply and demand forces will affect salaries and talent, and not-for-profit health systems will have difficulty paying market rates when the competition for these professionals across industry is high. We should be using the same strategies being deployed to address the nursing shortages, which would include targeting feeder schools, growing programs and tracks, offering incentives and providing formalized career growth opportunities.”
Anand Joshi, M.D., MBA
Position: Vice president, procurement and strategic sourcing, NewYork-Presbyterian Hospital, New York.
In the past two years: “The opening of our David H. Koch Ambulatory Care Center was the first time supply chain leadership was able to design a lean, end-to-end supply chain within a new center, and we were able to show how that design should be the model for all our sites.”
On the docket: “I am the executive sponsor for our HERCULES Non-Labor Expense (NLE) Reduction efforts. We have more than 20 cross-campus teams across every major operational area of the hospital – led by specific vice presidents and facilitated by my sourcing team leaders – that are focused on driving down non-labor expense within their scope of operations.”
Thoughts on the profession of supply chain management: “Early in my career I had found that too often, physicians’ and supply chain executives’ stereotypical views of each other were getting in the way of effective collaboration in driving down supply costs. As a result, over the past 10-15 years I have stressed throughout our sourcing and supply chain organizations that our team focus on engaging physicians closely in our work and building trust-based working relationships with them.”
Future challenge for the profession: “The next generation of supply chain professionals will face many of the same challenges that we are facing today – but quite likely on a greater scale, and at a faster pace. Successfully meeting those challenges depends almost exclusively on continuing to identify, recruit and retain the most talented professionals possible to address whatever situation arises.”
Ed Hisscock
Position: Senior vice president, supply chain management, Trinity Health, Livonia, Michigan
In the past two years: “The most challenging work on our plate lately has been changing our relationships with our supply base. These relationships are traditionally transactional, and it will be in everyone’s best interest if we shift that to something more collaborative – and lean. For instance, there are tremendous opportunities to drive costs out of our suppliers’ Selling General and Administrative (SG&A) expenses. Industry sector benchmarks suggest there could be as much as 15-20% waste in the way we currently do business in this area.”
On the docket: “Trinity Health’s clinical informatics team is working with supply chain on a bill-of-materials, so we can understand what products are used on which patients for which procedures. As our studies become more robust, we can give our clinicians richer data.”
Thoughts on the practice of supply chain management: “I stay on top of my own continuous improvement by remaining constantly curious and completely engaged. I went back to school to become an expert in my field. I stayed involved with that institution as a guest lecturer, and I make sure I am always open to learning from the bright and capable people I serve with at Trinity Health. I try to experience the healthcare supply chain from as many perspectives as I can.”
Future challenge for the profession: “I advise the next generation of supply chain professionals to challenge themselves to bigger ideas related to trade relationship efficiencies and waste, business continuity risks, and ways to promote change – specifically, standardization. They will be accountable for finding new ways to lean out our relationships with suppliers and intermediaries, as well. This will require education in supply chain fundamentals, inventory, finance, lean and procurement.”