February 11, 2014

Healthcare Providers Seek Collaboration and Aligned Incentives

At HIDA Market Conferences

Tom Harvieux of Sanford Health offers candid insights into his organization’s strategic objectives during IDN-Acute Care Healthcare Provider Focus Group. (With Amanda Llewellyn, Dimensions Health & Terry Niver, Billings Clinic)

Alexandria, Va. – Healthcare supply chain executives recently discussed ways to align business incentives among acute and non-acute care partners at the Health Industry Distributors Association’s IDN-Acute Care and Physician Market Office Conferences in Bonita Springs, Fla.

“I’m not looking for someone’s cure-all solution to reduce costs,” says Tom Harvieux, Vice President of Supply Chain Management, Sanford Health. “I want to talk about the true costs of doing business on both sides of my supply chain relationship, tear apart our existing model, and then put it back together again.”

Most participants agreed that collaboration and transparency were more important for reducing overall supply chain costs than any one price point or supplier solution. “We have a very intelligent industry that will evolve as new distribution models develop,” said Gina Marchese, Senior Vice President of Sales & Marketing, MMS – A Medical Supply Company. “I don’t think our customers are looking for one specific answer, but rather ideas. They want to be included in the conversations that are shaping our business models.”

HIDA Vice President of Government Affairs Linda Rouse O’Neill outlines upcoming reimbursement trends and changes affecting providers in 2014 and beyond.

Nearly 150 distributors, manufacturers, and providers attended the conferences which featured market-specific panel discussions.

More than 15 panelists offered executive-level insights, representing organizations including Dimensions Health, Sanford Health, Billings Clinic, Ambulatory Healthcare Services, Cardinal Health, MMS – A Medical Supply Company, Claflin Company, Medline Industries, Mercedes Medical, Henry Schein, Covidien, Dukal, Terumo, Midmark, and Excelsior Medical.

Attendees discussed areas of opportunity to work with providers to improve supply chain efficiency, for example:

• Physician preference items (PPI) – Recent estimates cite PPI supply chain waste costing the industry upwards of $5 billion. Distributors said they are open to new models to help providers more efficiently manage their PPI costs.
• Utilization – Providers want to understand the total costs to acquire and use a product, they said. Distributors emphasized their ability to help their customers reduce waste and save money.
• Shared risk – Providers said they are willing to take a chance on new items if suppliers are willing to back up their promises. Customers are more likely to purchase new items if they are adequately educated and assured that it can reduce adverse patient events and improve care outcomes.

For more information on these and upcoming HIDA Market Conferences, please visit www.HIDA.org/Events.