Hospital CFOs top 3 concerns for 2018, supply shortages abound

Volume 9| January 10, 2018

Insights-Trends-Opinions

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Shortage of IV Bags continues

It's never good when our industry is on the cover of The Wall Street Journal, and that is exactly what I found this Monday morning.

The quote that really jumped out at me is:

“It’s hard to overstate the public-health crisis,” said Craig Frost, vice president of clinical pharmacy services at Catholic Health Initiatives. “It’s a fundamental part of patient care.”

I think everyone is greatly concerned that a heavy flu season and this shortage could create a perfect storm none of us want to see.

Interestingly, the article also shows market share by supplier:

Market-research firm IBISWorld estimated Baxter holds 44% of the U.S. IV solutions market, followed by Hospira Inc., now part of ICU Medical Inc., with 31%, and B. Braun with 10%.

Being an eternal optimist I am hopeful relief is in sight and take comfort in FDA Chief Scott Gottlieb's comment that it should improve within two months.

A link to the full article is below.

Full article

Flu running rampant in California causing supply shortages

So many people have fallen sick in California that pharmacies have run out of flu medicines, emergency rooms are packed, and the death toll is rising higher than in previous years.

Tamiflu is nowhere to be found. Cases seem to be 10% above last year and climbing.

Here is an interesting article showing the struggle California is enduring.

Click here for the whole article

Medical Device Tax Returns

Much has been written and debated about the recent tax reform but I have not seen much about how the Medical Device Tax will effect suppliers.

This will be the topic of this week's survey and I will share the results in next week's edition of National Accounts Weekly!

Link to survey.

TPC contracts with Vizient

TPC a network of independent health systems located in Arkansas, Missouri and Texas, has signed an agreement with Vizient for comprehensive sourcing, performance improvement and cost management services, including strategic sourcing, utilization management, and clinical and operational consulting, as well as, service line, clinical and supply chain analytics.

This announcement seems to settle a on and off again relationship with Vizient and its predecessors.

When the release came out I was poking around the TPC website and noticed its claim of demonstrated savings to its membership of $200m since 2010. That is fantastic results.

I have been following TPC for the last 5 or 7 years and hadn't noticed their progress. Hopefully this new contract will continue that momentum.

Below is a link to the full press release.

click here for full article

How much money do hospitals have to make? Well it depends...

I get asked by National Accounts Executives all the time How much money do hospitals have to make?

The question insinuates that non-profit hospitals should not be beating suppliers up on costs when they are operating in the black. Its is a pretty interesting topic for discussion.

Having not-for-profit status, after all, is in consideration for providing free care to those in need. So the real question is:

How much care does a hospital have to provide for free to qualify for not-for-profit status?

This is a little harder to answer and its complicated! But the AHA did just report that in 2016 hospitals reported $38.3b in uncompensated care costs. This is down from a high of $46.4b in 2013.

Check out this release by the AHA. If you get your mind around this you will be way more conversational with a hospital CFO!

Click here for full release

Cost reduction tops recent CFO survey

A recent survey shows Cost Reduction is the top priority for CFOs today. This doesn't surprise me and National Accounts Executives shouldn't be surprised this year when talking to Supply Chain Leaders that cost pressures have not evaporated.

Last year at Federation Newt Gingrich spoke about how Cost Reduction is now a worldwide business initiative and is never going away. Not just in healthcare but in every segment of the economy (Here is my blog from that event). To find out the other concerns the article is below.

Click here for the article.

People on the move!

Ernie Hahn named VP of Sales for Ventyv

Paul Educate named VP National Accounts for Ventyv

Mike Maguire named Chief Supply Chain Officer and SVP at PartsSource Inc.

Jason Baumgartner is now SVP US Sales at Vyaire Medical

Brian Malone is now Director, GPOs at Triad Isotopes

Jorge F. Hernandez named VP Supply Chain/CPO Broward Health

Howard Mann named VP, Supply Chain at Innovative Renal Care, LLC

Gene Kirtser named President & CEO at Affordable Care

Nancy Derrick named GPO National Accounts Manager at Nutricia

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John Pritchard

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