PEOPLE & OPINIONS
Photo credit: sutadimages |
stock.adobe.com Are suppliers, vendors fit for a value-
based procurement future? From ‘skin in the game’ to shared reward, options abound by Brian Mangan, MSc, FCIPS, and Randy V Bradley, Ph.D., CPHIMS, FHIMSS
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n the first article exploring value- based procurement (VBP), we took a healthcare provider perspective where we focused on the need for procurement functions to foster collaboration across the supply chain to address the health- care challenges in a post-COVID-19 world. [Editor’s Note: See “Value-based procurement: What’s in it for provider sup- ply chains?” September 2021 Healthcare Purchasing News, https://www.hpnonline. com/sourcing-logistics/article/21234509/ valuebased-procurement-whats-in-it-for- provider-supply-chains.] ore specifically, we advocated for simplicity over com- plexity, transparency over opaqueness, strategic over transactional relationships, and leadership within and outside the supply chain function intent on develop- ing long-term, value-added partnerships with suppliers and vendors.
From the provider perspective, we sug-
gested that “value-based” approaches are being considered across multiple jurisdictions from Europe to the Middle East as they pursue finding ways to deliver environmentally sustainable and cost-effective healthcare against a backdrop of increasing demand. We expect value-based programs of some form to be the norm going forward, and we expect there to be increasing external and internal pressure on health systems and suppliers to comply. This month, we consider VBP from the perspective of a supplier and vendor. By definition, suppliers manufacture prod- ucts and may have direct contact with customers; vendors, however, do not manufacture products but only distribute and sell products directly to customers.
60 July 2022 • HEALTHCARE PURCHASING NEWS •
hpnonline.com
We draw upon our own global experi- ences in support of VBP programs. By way of this, we offer insights gleaned from conversations with a leading mul- tinational medical device and technology manufacturer. We identify common issues and opportunities as it relates to manufacturers taking the lead to develop and promote value-based solutions.
Business models changing A well-regarded notion in the arena of change management is that effective- ness and success are predicated on a “felt-need,” which is the realization that a change is necessary.1, 2
If there was ever
a more concrete motivator for change, it would have to be the maelstrom of activity that healthcare systems faced in 2020. The global impact and prevalence
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