SOURCING & LOGISTICS
The CSO team strives to review initia- tives beyond the price by evaluating the price of the product and the price of patient outcomes.
In your opinion, what are the toughest administrative challenges for value analysis in the following four areas and how did or might you overcome each:
· Administrative—Executive leader- ship support.
Leadership sets the strategic vision, holds the teams accountable, and removes barriers. Executive leadership also presents the value of the program with emphasis on patient and staff safety. Without this support, the CSO program would not exist.
· Clinical—Support from clinicians. Feedback from clinicians is crucial in building a successful, clinically inte- grated supply chain. There is no clinical integration without clinicians, therefore, involvement from clinical leaders is nec- essary. Clinical leaders are included in conversations on opportunities for improvement. As committees were formed, clear expectations of the work were established together to review ini- tiatives, execute, and monitor clinical and fiscal outcomes.
· Financial—Having all the right data. Partnering with other departments enables the teams to view the full proj- ect scope. Decisions may need data on evidence, budgetary impact, physician utilization, reimbursement, or offer a strategic perspective. Clinicians are responsible for guiding these decisions and supply chain provides the evidence necessary to support the decisions.
· Operational—Executing a new program requires successful communication. The health system leveraged a one- on-one meeting structure. It also holds regular leadership meetings, small team huddles, and daily email communica- tion to communicate the new program. Communication included CSO’s pur- pose, goals, and how everyone in the health system can participate in this journey. There were weeks of time invested in preparing and following up on communication provided through- out the health system.
The CSO program is designed to work within any medical center regardless of size. By leveraging committee structures and daily organizational communication, team members have awareness, have a seat at the table, and participate in decision-making.
What are the top three priorities for CSO’s value analysis (VA) and utilization management (UM) subgroups going into 2024 and why?
1. Program expansion. In 2023, The University of Kansas Health System acquired a new facility in the southwest Kansas City market. The Supply Chain department in actively implement- ing Clinical Supply Optimization into the new facility. To achieve this, there needs to be program centralization that includes voices from every facil- ity. Moving together as one system to deliver care to every patient that comes through the door.
2. Cost-per-case opportunities. The team uses data to review, discuss and drive down cost-per-case opportunities within the surgical departments. This achieves
the lowest cost of care component in a clinically integrated supply chain model.
3. Product variation reduction and contract maximization. The CSO team focuses on opportunities that will reduce vari- ation of products across organization. This will help drive down costs and put more focus on providing the best patient care possible.
The equation VA + UM = CSO rep- resents an interesting development that seems borne from the pandemic. Could or would you have pursued this concept or model regardless of a major crisis or did/do you need such a crisis to ignite this kind of thinking and pro- gress? Why?
As the only Academic Medical Center in Kansas, our vision is to lead the nation in caring, healing, teaching and discovery. For Supply Chain we knew our part of this vision was a clinically integrated supply chain. Our strategic focus began in 2019. The mindset was to view it from a quality and safety and economic perspective. Culturally, the team was seen as wanting to change products to save money, though it is much more than that. The health system became deeply affected by the pandemic in March 2020, though the clinical integration work had already begun. End-users were faced with having to utilize various products out of necessity due to global supply and raw-material shortages. If anything, the pandemic enhanced the clinical integration work across the Supply Chain department, not just Value Analysis by bringing clini- cians and supply chain together to tackle supply challenges. HPN
The CSO model 10 October 2023 • HEALTHCARE PURCHASING NEWS •
hpnonline.com
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