Issue link: https://beckershealthcare.uberflip.com/i/417381
46 Executive Briefing: Alternate Care Networks "You have to be committed to doing every- thing that needs to be done for your physi- cians, or they will lose faith in you and the program," Ms. Saeger says. 3. Identify key partners to support your vision. Having a strong support system is benefi- cial for any new venture, so finding key part- ners who support a shared vision is critical for a successful physician practice materi- als management program. Key partners can come in the form of represen- tatives, such as Ms. Saeger and the DOCxdi- rect team, or different vendors and distributors that share the strategic vision and help develop and work toward operational goals. For example, THR partnered with distributor Henry Schein Medical to support its new ma- terials management efforts. Mr. Gaida says Henry Schein is not only THR's distributor of medical/surgical products, but is also a re- source and a partner in the health system's strategic vision as the system continues to extend its presence in outpatient settings. In this instance, Henry Schein and THR both prioritized reducing supply chain costs, shar- ing savings, transitioning to an automated vendor management system and creating the most cost-effective overall program. Having key partners who are specialized in the niche and understand the unique re- quirements of the non-acute-care market can help the overall team implement a proj- ect poised for success by meeting the jointly agreed upon goals and strategies. Distribu- tion partners in the non-acute space have great visibility into community practices' supply spend and are a great resource for data and information. In addition, distribu- tors can provide services like training, in-of- fice solutions and services that can support practice efficiency — from strategy develop- ment all the way through implementation. 4. Collect and analyze the data. Progress is contingent on the collection and analysis of data. It is difficult, if not impossible, to determine next steps if an organization does not know the history of where it has been. When implementing the physician-practice materials management program at THR, Mr. Gaida's first step was to gather data to understand physician practices' supply chain activities. Only then could the health system make decisions on where cost re- ductions were feasible and effective. In THR's case, the process of collecting the data required a mini-project of its own, one that simplified the process of data collection from the numerous distributors and systems used by the all the physician practices. "We needed to own the data; we needed to be able to communicate with all vendors," Mr. Gaida says. "And it became clear that until we had our own MMIS (materials man- agement information system) dedicated to the non-acute space, we would not be able to make good decisions about standardiza- tion and cost reduction." THR turned to an electronic supply chain solution that allowed physician practices to order equipment and supplies as well as track inventory. This transition wasn't easy for some physicians as many were used to working solely with sales representatives. Only 20 percent of physician practices or- dered supplies electronically before intro- ducing the automated supply chain system, but more and more practices eventually learned and witnessed the ease of elec- tronic ordering and embraced the change. Once THR had collected and analyzed the data from physician practices, they were able to make next-step decisions. 5. Standardize products, but also solicit input. As in any care site, standardization is key to lowering supply chain costs. Standard- ization can be a difficult task, especially as newly integrated physician practices may be used to working with certain products. At Weill Cornell Medical College in New York City, the physician practices work specifically with non-acute-care vendors whose expertise in the space helps smooth the transition for newly acquired physician practices. Experts such as Henry Schein Medical can support supply chain leaders in the identification, evaluation and implemen- tation of such product transitions. Instead of pushing for standardization right away, the supply chain team at Weill Cornell works to improve pricing on products already in use. Partnering with vendors who have specific expertise in the non-acute-care market can help increase physician satisfaction while driving the best product costs. While standardization is still key, it isn't immedi- ately forced. Instead, it is slowly built up and worked into the practice, allowing an adjust- ment and transition period first. "It's enough for some of these practices to come under the Weill Cornell umbrella," says John Frain, director of purchasing at Weill Cornell. "It's a big step to tell them what products they should use." Once standardization becomes a viable next step, it is important to include the physicians in the process and ensure they know they are a necessary part of the team to achieve standardization. For example, physicians in the Sentara Healthcare DOCxdirect program are highly involved in the standardization process. Ms. Saeger says when the program is evaluat- ing products, they send samples to physi- cians for their evaluation and input. This not only helps physician practices standardize items, but it also helps identify products specific for their market and increases en- gagement and participation long-term. 6. Communication, as always, is key. As is the case with most relationships, com- munication is the linchpin to implement- ing a successful physician practice supply chain program. It also is the common theme throughout the previous five keys to success. Constant communication with point persons and key partners — GPOs, distributors, sup- pliers, physicians and major stakeholders — ensures all members are on the same page and on track to progressing toward an op- timal materials management program. Sup- ply chain experts can help guide physicians through the materials management process while physicians relay their specific needs and requirements for the alternate care site. Though at first glance the changing care landscape may appear difficult to navigate, these keys to success can help build and optimize supply chain programs in the al- ternate care network. Continuous commu- nication, collaboration and a solid strategic vision will help drive physician practices supply chain programs compatible with the changing healthcare landscape that drives down overall health system cost while bol- stering clinical quality. n Henry Schein is a Fortune 300 company with over 80 years of experience serving healthcare practitioners. We distribute medical-surgical supplies, equipment and pharmaceutical products to over 120,000 physicians nationwide and have industry-leading service rates. Utilizing tools, resources and data, we help non-acute settings operate profitably and efficiently. In addition, we have the largest portfolio of value-added services to support practices in today's changing health care environment. For more information, visit our website at www.henryschein.com/whyrelyonus.