HSC_Presentation

Hospital Supply Cooperative

(HSC)

Improving patient care & safety

We have successfully established businesses providing Software products and Services in the Global Healthcare Marketplace.

• Numbers Only, Inc. - US based software consulting firm – $10+ Million in Revenue in 2012.

• AtPar, Inc. – Hospital Mobile supply chain solutions company acquired by Management Health Solutions, Inc. in USA in 2010 – established in year 2004 and has more than 400 + hospitals using the solutions currently USA and Canada.

• NforcePro, Inc. – Governance, Risk Management, & Compliance solution for Healthcare

• Zintec Software Pvt. Ltd. – Offshore Software Product development & services company based in Hyderabad with focus on gaming, healthcare, and retail industries – about 100 employees.

• Healthcare Growth Strategies LLC (Partner) – US based Healthcare Supply Chain Consulting firm.

ABOUT US

� Over 30 years in the healthcare industry

� Presently part of the Presidents Advisors for US largest healthcare MS Distributor

� Principal and founder of Healthcare Growth Strategies

• Has consulted with major hospital suppliers on Supply Chain & OR Strategies

• Present business assists new & existing manufacturers to commercialize their offerings in the US

� Sr. VP of Distribution for the largest US Medical Surgical Distributor

• Responsible for Sales & Marketing

• The operations of 65 distribution facilities

�Owned and operated

• Custom Surgical procedure tray company

• Pediatric extended care facility

• Homecare company

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Tim Callahan - Advisor

Team


� Started the career in 1994 working with Tata Consultancy Services in Mumbai

� Over 15 years of healthcare industry experience in USA

� Founder and President of Numbers Only, Inc. (founded in year 1997) focused on

implementing ERP solutions like Peoplesoft, Oracle, SAP etc for hospitals and

other organizations in USA. Numbers Only, Inc. is in business for 16 years now

and has about 100 consultants on the rolls.

� Founder and CEO of Atpar, Inc. (founded in year 2001) focused on Hospital

Supply Chain efficiency. Worked with manufactures, distributors and hospitals in

improving the supply chain from the manufacturing point to the point of

consumption by the patient. Atpar, Inc. had top 100 hospitals in USA including

Kaiser Permanente, Ascension, Ohio State as customers. Atpar, Inc. company is

sold to Connecticut based Healthcare consulting firm Management Health

Solutions in 2009.

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Raju V. K. - CEO

Team


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Pavan Kumar S – Vice President (Bio Medical)

� Over 10 years of working at leading healthcare organizations like Madras

Medical Mission, Kamineni Hospitals, Global Hospitals & Yasodha hospitals

� Expertise in purchase, service, maintenance & contract management of medical

equipment with all manufacturers & service companies

� Experience in NABH, NABL, AERB & other accreditations

� Hands on experience in determining the viability of any refurbished equipment

using all standard parameters

� Instrumental in installations of major equipments like gamma camera, pet CT,

MRI, Linac at multiple healthcare delivery locations etc

Team


6

Hemanth Kumar M – Vice President (Client Engagement)

� Over 6 years of working at leading organizations like IL&FS, CAP, IEIL, USAID etc.

� Over 3 years of experience in studying the healthcare supply chain market in AP and instrumental in coming up with concept of HSC

� Experienced in consulting various business lines like Health care, Infrastructure, Retail, Power & various govtagencies

� Expertise is Market research, Feasibility Studies, Business development

� MBA ((Market Research) from IBS

Team


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Vision

Our vision is to create a Hospital Supply Cooperative

(HSC) offering competitive contracts, product

standardization, equipment maintenance, purchasing

process efficiencies and value added services, resulting

in improved quality care.


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Major Focus Areas

� Medical/Surgical Supplies Contracting

� Medical Equipment Support Service

� Consulting

� Outsourcing – Purchase Departments

� Outsourcing – BME Departments

� Procurement – Bio Medical Equipment

Improving patient care & saftey

Supply Cooperative - Industry Facts (USA)

�97% of all hospitals in U.S. use this model for contracting

�90% of commodity items are sourced through such contracts

�70% of clinical preference items (specialty surgical products) are sourced through such contracts

�18% savings on average of total procurement costs in the US

�Most U.S. hospitals outsource maintenance of the medical equipment to professional companies to get quality service and to save costs.


Supply Cooperative - - Benefits

� HSC helps Hospitals in below Key areas

� Supply Pricing - Consolidated purchase and availing discounts

� Supply Quality - Eliminates spurious & refurbished products

� Ease of ordering – Online Department level purchase and authorization

� Patient Care – Equipment availability and performance improvement

� HSC helps manufacturers to

� Forecast Demand - ensure availability of the goods

� Quick market access – access to cooperative group members

� Reduce redundant costs - Electronic Order Processing

� Social Benefits

� Improves quality of Health Care – low cost quality products available

� Eliminates the risk - No duplicates and illegally recycled medical surgical

supplies


Current contracts/ order process

Hospital 1

Hospital 2

Hospital 3

Hospital 4

Hospital 5

Distributor 1

Distributor 2

Distributor 3

Distributor 4

Distributor 5

Manufacturer 1

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

ORDERS

SUPPLY

MU

LT

IPL

E N

EG

OT

IAT

ION

S,

PR

ICE

MA

RK

UP

S

ORDERS

SUPPLY


New contracts/ order process

Hospital 1

Hospital 2

Hospital 3

Hospital 4

Hospital 5

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

GROUP

REQUIREMENT

NEGOTIATED

PRICE

PURCHASE

ORDERS

SUPPLY

HSC

Distributor 1

Distributor 2

Distributor 3

Distributor 4

GROUP MEMBERS

AUTHORIZED DISTRIBUTORS

AUTHORIZED MANUFACTURERSM

ULT

IPL

E C

O-O

P P

AN

EL

S

SUPPLY

PURCHASE

ORDERS

SU

PP

LY


Supply Cooperative - eProc tool – Salient Features

� Reduced ordering time via custom defined order templates

� Integrated feedback mechanism

� Integrated customer support mechanism with integrated discussion forums

�Will enable manufacturers Train hospital staff on safer usage of supplies

on patients – Over the web

� Scheduled automatic order processing with alert system

� Hospital Xchange for selling/buying supplies/equipment


Supply Cooperative – Product Ordering


Supply Cooperative - Manufacturers / Suppliers

� Tyco Covidien

� BSN Medical

� Kimberly Clark

�Monarch Enterprises

� Sree Medical

�Mantri Pharma

� Airways Surgical


Hospital

�Willing to implement & standardize on selected product categories

�Willing to stay within the payment term expectations of the Manufacturer

� Designate a responsible point person for information & response in each hospital

(order/contract process)

� Keeping the contracts / prices confidential

Hospital Supply Cooperative (HSC)

� Select suppliers and product categories to improve quality, service and reduce

prices

� Establish a centralized process for the order management of selected products

� Support efforts with education and product training requirements

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Supply Cooperative - Commitment to the Program


Medical Equipment Support Service

� Hospital Equipment study and data collection including manufacturer, model, location and department information.

� Barcoding Equipment for easy identification and easy access to service history data related to the equipment.

� Preventive maintenance schedule (daily tasks, weekly tasks and monthly tasks if any )set by experts for all the critical equipment

� Trained and certified HSC Engineer visits to Hospital for audit/check/maintain equipment performance based on the preset schedule

�Help customers with Condemnation process and acquire traceability certificates to comply with NABH, NABL and other industry standards


Medical Equipment Support Service

�Configuration and calibration of the equipment on a regular basis

�Available 24/7 on call support by qualified and trained Engineers guided by experienced supervisors for any emergency issues

�Reduces cost of equipment accessories including consumables as provided by HSC certified vendors at a low pre set contract price.

� Reduces downtime of equipment improving availability.

�Multiple flexible engagement options

� HSC engineers use Proprietary Software Platform to manage the process and all the reports will be made available through the HSC portal anytime for customers


Medical Equipment Support Service - Benefits

� Eliminate the administrative effort on the equipment maintenance and focus more on patient care

� No hassles of hiring and training BME technical staff from time to time

� Anytime availability for resolving issues as they occur within an acceptable time frame for response/resolution

�Maintenance schedules done by experts to ensure maximum uptime and performance of the equipment and increase life expectancy of the equipment

�Maintenance reporting will be available for complying with several standards.


Medical Equipment Support Service - Process


�Model 1: Support Visit twice a week (20 hrs) Rs. 7,000 / month

�Model 2: Support Visit thrice a week (30 hrs) Rs. 10,000 / month

�Model 3: Support Daily Visit (40 hrs) M to F Rs. 13,000 / month

�Model 4: Complete Outsourcing of BME Department on a monthly fee basis

� Engineer will spend 2 hours every visit at the hospital for preventive

maintenance, calibrations & breakdown management

�Additional hours charges which are beyond the allocated hours based on the

model will be Rs.400 / hour in regular hours of 9 AM to 6 PM from Monday to

Saturday and Rs.800 / hour (traveling and other allowances extra at actuals)

outside of regular hours.

� For hospitals that are not part of the program , hospital will be charged Rs. 2000

per visit .

� Payment Terms – To be pre-paid on a monthly subscription basis.

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Medical Equipment Support Service - Models


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Outsourcing – Purchase Departments

� No hassles of hiring experts that understand products, suppliers

and pricing.

� Eliminate the time to find vendors/suppliers for several products

and negotiate with them

� Gain access to expertise in buying and understanding the

products and suppliers

� Gain access to already negotiated contracts with quality suppliers

� Gain access to volume discounts as part of the larger

group/cooperative of the hospitals increasing purchasing power

� Monthly reports to understand the trends in usage of supplies


Supply Cooperative - Revenue Model

� “Administration Fee” charged by HSC a 2 to 5 % of sales revenue to the manufacturer and a 2 to 5 % of the purchase value to the hospital

�Value added services Fee - additional fees for other value added consulting services offered (ex. Equipment Procurement consulting, NABH certification/compliance, etc.)

�Advertising Revenue – manufacturers will pay a fee for advertising on HSC website and to carry their information on our communications to hospitals.

�Exchange Sale Fees – A 10 % of the sale of the unused supplies and old equipment by the Hospital on the HSC website - Exchange


Our Customers

Vijayawada� Andhra Hospitals

� M J Naidu

� Vijetha Hospitals

� HCG

� Metro Super Speciality

� AIMS

� Katuri Medical Center

Hyderabad� BBR Hospitals

� Aditya Hospitals

� Tulasi Hospitals (Outsourcing)

� Pranam Hospital

� Mamatha Hospitals

� Paramitha Hospital

� Sunrise Hospital

� Innova Heart Hospital

� Mythri Hospital

Karimnagar� Sri Lakshmi Hospital

� Royal Hospital

� VRLS Memorial

� Chikitsa Hospital

� City Cancer Hospital

� Suraksha Hospital

� Sunrise Hospitals

� Latha Super Speciality

� Esha Hospital

� LK Hospitals

� Sai vani Hospitals

� Ravi Helios

� Vasavi Hospital

� Lalitha Gayathri Hospital

� Krishna Childrens

� Woodland Hospital

� The Birthplace

� Sairam Hospital

THANK YOU

HSC_Presentation

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