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What does the buyer expect?

The Future of Healthcare Supply Chain

November 4th, 2014

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Healthcare Landscape 2014: Changing Times

Under reform, fully phased-in hospital cuts (2019):

– At BEST, baseline payment MINUS 14% (across-the-board cuts only)

– At WORST, baseline payment MINUS 20% (across-the-board PLUS quality cuts)

Hospitals need a comprehensive strategy to minimize costs while maximizing quality patient outcomes

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The Evolution of Healthcare Supply Chain

Cost-Quality-Outcomes

Utilization & Standardization

Price Controls

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CQO: A new way of decision-making…

Cost: all costs associated with delivering patient care and supporting the care environment

Quality: patient-centered care aimed at achieving the best possible clinical outcomes

Outcomes: financial reimbursement driven by outstanding clinician care at the appropriate cost

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CQO requires outreach.

CQO requires supply chain leaders to build new and different types of relationships with:

o Thought leaders from multiple departmentso Finance/reimbursement teamso Medical leadershipo Clinicianso Manufacturerso Distributorso GPOs

CQO, It’s a Healthcare Issue being led by Supply Chain…• Consistent outcomes• Improved quality of hospital experience• Best practice medicine