Becker's Hospital Review

40 EXECUTIVE BRIEFING 3 EXECUTIVE BRIEFING Health systems operating with clinical advocacy baked into supply chain decisions typically have structured, collaborative, evidence-driven value analysis processes in place. Whenever possible, they develop guidance documents and automated frameworks that help supply structure around which circumstances, indications and patient populations a particular medical technology or procedure will be used. And the primary metric is no longer cost (though that is still a crucial factor) but improvements in patient care. By aligning their vision with clinical service lines, value analysis teams help deliver the measurable improvements in outcome that achieve this goal. 5. Value-based care becomes harder to achieve On the regulatory front, CMS' value-based care initiatives are reaching maturity. Hospitals now must place greater emphasis on improving patient outcomes, or face penalties. Failure to use clinicians' insights into the effectiveness or safety of certain products can result in the purchase of faulty or ineffective medical products. This, in turn, could result in higher readmissions rates and other negative downstream effects. In addition, under the Medicare Access CHIP Reauthorization Act, hospitals could be penalized up to 9 percent depending on their performance. Further, they stand to miss substantial bonuses built into MACRA. But by involving clinicians at the beginning of the supply chain management process, health systems can better align the administrative and clinical functions to achieve spend management and patient outcomes goals. 6. Physician dissatisfaction In supply chain models that don't integrate supply chain management within their clinical practices, physicians are left out of buying decisions or make their own based on peer advice or input from industry reps. These decisions are made in isolation, outside of an integrated, data-driven approach. In other cases, physicians are excluded from conversations about healthcare supplies and may even be forced into using certain medical devices and supplies without consultation. This approach breeds physician frustration and resentment. A recent healthcare industry survey found that 77 percent of clinicians want to play a bigger role in supply chain decisions. Research by Young, Nyaga, and Zepeda showed a positive association between hospital-physician employment and supply chain performance. Finally, another long-established supply chain strategy to lower cost — switching vendors —has been shown to be a contributor to clinician burnout. Switching products may save on costs but has been shown to burden front-line physicians and other providers because it causes changes in processes and/or practices. Researchers found that such change is "often perceived as unnecessary, is unwelcome and erodes the joy in care delivery." There is also a learning curve inherent in new product introductions, which increases the chances of medical mistakes and patient harm. How leading health systems evolve their supply chains Many health systems have seen substantial improvements in their bottom line by using data analytics and integrating the supply chain with clinical practices — and specifically by involving physicians early and often in the process. According to an article published by the Healthcare Financial Management Association, Main Line Health used data analytics to connect its supply chain function with its clinical practices. As a result, the organization reduced the use of certain supplies by 80 percent while maintaining equivalent patient outcomes. As another example, Baltimore-based Johns Hopkins Medicine adopted the "clinical supply chain integration movement" and achieved $50 million in cost savings. Most illuminating is how the health system drove the savings. Johns Hopkins' CFO Ron Werthman said, "Without the involvement of clinicians, we can only influence about 20 percent of the cost." He added that with clinician involvement in standardization and utilization, something facilitated in large part through cloud-based technologies, "[we] can generate substantially greater savings." How to incorporate clinical integration into your supply chain By using a centralized cloud-based technology to manage your entire process, health system leaders can immediately center supply chain business units and clinical systems around agreed- upon financial and clinical objectives. That structure enables organizations to: • Make data-driven purchasing decisions • Align key stakeholders in real-time • Drive standardization Collectively, these achievements combine to substantially improve your bottom line. symplr can help healthcare organizations involve the right people, at the right time and in the right capacity to approach supply chain decision making within a digital framework. symplr is the leader in enterprise healthcare operations software and services. For more than 30 years and with deployments in 9 out of every 10 U.S. hospitals, symplr has been committed to improving healthcare operations through its cloud-based solutions, driving better operations for better outcomes. Our provider data management, workforce management, and healthcare governance, risk management, and compliance (GRC) solutions improve the efficiency and efficacy of healthcare operations, enabling caregivers to quickly handle administrative tasks so they have more time to do what they do best —provide high-quality patient care. Learn how at www.symplr.com.

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