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DOING BUSINESS


addition, an MMIS enables you to price match in four distinct ways: purchase order (PO) price to price paid; inventory received to what was ordered; invoice price to contracted price; price paid to price specified in your GPO contract.


3. Drills down to cost per physi- cian, per case enabling side-by- side comparisons of physician- associated costs that create a framework for discussions about reducing variation in practice without sacrificing quality.


4. Centralizes purchasing for mul- tiple locations, aggregating sup- ply purchases to achieve best tier pricing. The system also can di- rect delivery of ordered supplies to the correct location as a part of the comprehensive inventory management solution.


5. Establishes a product formulary to improve your ASC’s ability to


monitor adherence to contract pur- chases and identify costly varianc- es for follow-up and resolution.


6. Provides a complete purchasing solution, not just medical/surgi- cal supplies. Purchased services represent a significant percent- age of an ASC’s supply spend- ing. An MMIS can provide the same efficiencies regardless of the product or supply type. If your ASC can’t justify adding


a materials management professional to its payroll, then outsourcing your supply chain function might be just what the doctor ordered. Your GPO or your distribution partner might of- fer an outsource option. This option enables your ASC to contract with an outside supply chain expert to handle your


entire materials management


function. That expert is assigned to manage your organization’s supply chain, to monitor activity for oppor- tunities to aggregate and standardize


purchases and to maximize the value of the function.


See the Results How effective and valuable can out- sourcing the materials management function be to an ASC? One ASC in the Northeast


integrated an MMIS


into its daily operations and contract- ed with its GPO to manage the day- to-day operations of its supply chain. Utilizing the analytics component of the MMIS, the ASC cleansed its item master of 2,417 items and has con- tinued to maintain that new schedule. Productivity of the materials depart- ment improved significantly as did management of inventory levels. As the positive aspects of the MMIS and outsourcing arrangement became ap- parent, the ASC increased its contract adoption rates resulting in greater cost savings and rebates from suppliers. Monitoring a 60-day period of materi- als transactions confirmed to the ASC executives that their decision to invest in an MMIS and to fully outsource their supply chain was on target. In only two months, the ASC achieved a 70 percent contract compliance rate, with more than $134,000 out of a total spending of $191,265 flowing through its GPO’s negotiated contracts. Based on the realized savings over 60 days, the ASC projected that it could save nearly $40,000 annually. There’s no doubt that an increas- ing number of ASC administrators are seeing their supply chain in a more strategic light. Using your sup- ply chain to cut costs, improve quality and assure success in the fast-chang- ing world of health care makes good business sense. As more and more is demanded of your organization in terms of lower costs and improved outcomes, your supply chain should be held to the same high standards.


Jon Pruitt is vice president of procurement solutions for Provista LLC,www.provistaco.com.


26 ASC FOCUS MAY 2013


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