Volume 31 | October 8, 2018
Insights-Trends-Opinions
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John Pritchard
jpritchard@ShareMovingMedia.com
(770) 263-5262

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National Accounts Summit registration now open! Space is limited!
The inaugural National Accounts Summit will be held November 13-14, 2018 in Orlando, Florida.

The National Accounts Summit was created to help National Accounts Executives develop and hone their skills for our ever-changing contracting arena.

Hear experts from:
  • UPMC
  • SSM Healthcare
  • Aurora
  • Vizient
  • and much more!

Registration is now open and space is limited!

GSK updates policy for working with healthcare professionals; payments now permissible
These changes are being made for a select number of innovative products in a limited number of countries and apply to restricted time periods in a product’s lifecycle. The updated policy means GSK will in certain circumstances:

  • Allow payments to global expert practitioners who speak about the new science behind our innovative products, their associated diseases and clinical practice in promotional settings.
  • Pay reasonable travel costs (except in the US) for an HCP to attend a GSK-organized standalone meeting to learn about data and clinical expertise.
  • Directly pay registration fees for HCPs to attend remote congress webinars/webcasts. We will continue to not sponsor HCPs to attend local and international conferences.
Cleveland Clinic adds Martin Health System, makes $500m commitment
CLEVELAND, Ohio, and STUART, Fla. – Martin Health System and Cleveland Clinic signed a definitive agreement resulting in Martin Health becoming a full member of the Cleveland Clinic health system, pending federal and state regulatory reviews. The agreement comes six months after the two organizations executed a Letter of Intent to explore opportunities for Martin Health to become part of Cleveland Clinic. During that time, both organizations conducted rigorous due diligence and negotiations.

By the numbers:
  • Martin has 3 hospitals and 150-member physician group
  • Cleveland Clinic will invest $500m over 5 years into Martin
  • Cleveland Clinic has served patients from every state and 185 countries

University of Miami Health System welcomes Keith J. Murphy as new Vice President of Supply Chain Services 
( Miami, Florida – October 2, 2018 ) – The University of Miami Health System is pleased to announce Keith J. Murphy as its new vice president of Supply Chain Services.

In this newly created role, Mr. Murphy will support the goals of the University and UHealth by providing oversight of the supply chain of the health system, including the hospital-based and ambulatory facilities, and the UM Medical Group.

“I look forward to enhancing supply chain capabilities to meet UHealth’s current and future needs,” said Murphy.

With more than 30 years of experience in contract, inventory, and logistics management related positions, Mr. Murphy brings a wealth of experience to this position. He comes to the University of Miami from Yale New Haven Health System, where he was executive director of Corporate Supply Chain. In that position, he had responsibility for a non-labor spend of $1.2 billion in the acute and non-acute areas, and co-created and implemented strategic solutions that focused on the triple aim to reduce costs while improving quality and outcomes through the standardization/utilization of products and services.

“We are confident that adding Mr. Murphy to our leadership team will move us toward greater efficiencies and financial growth,” said Edward Abraham, M.D., Executive Vice President for Health Affairs and CEO of UHealth.

Murphy joined the UHealth team on October 1. 
Baylor Scott & White to combine with Memorial Herman, creating a 68-hospital IDN
The boards of Baylor Scott & White Health and Memorial Hermann Health System have signed a letter of intent to merge into a combined system to further strengthen communities, advance the health of Texans and transform the delivery of healthcare.

As two of the most comprehensive not-for-profit health systems in Texas, Baylor Scott & White Health and Memorial Hermann, both founded as faith-based organizations, share similar missions and values. Equally important, they share like-minded, forward-thinking visions for the future. This proposed combined health system is positioned to become a national model for integrated, consumer-centric, cost-effective care.
“This is about two mission-driven organizations – both committed to making safe, high-quality healthcare more convenient and affordable – building something transformative together,” said Jim Hinton, CEO, Baylor Scott & White Health. “We must lead the change in our industry, while insisting we continue to fulfill our unwavering commitments to meeting the needs of all Texans.”

Free Webinar: 10 Key Strategies to Sell to IDNs and GPOs
After 35+ years in the industry, John Pritchard and Ken Murawski know what works when it comes to selling to Integrated Delivery Networks and Group Purchasing Organizations. In this webinar, tap into their collective knowledge and learn how you too can navigate this complex, changing arena by leading with value-based solutions.

This session will dive into the findings compiled in a newly published e-book from The Association of National Accounts Executives (ANAE) which outlines the ten imperatives anyone calling on these organizations needs to understand.  

You’ll walk away with:
  • A deep understanding of 10 actionable strategies to employ 
  • Specific examples of how these tactics have proven themselves successful
  • Insight into more than 3 decades of contracting success with IDNs & GPOs 
  • Exclusive access to the e-book: 10 Keys for Success in National Accounts in 2018

Expense growth continues to outpace revenue growth for US not-for-profit and public hospitals
"Revenue pressures continue to overshadow expense saving initiatives," according to Moody's Analyst Rita Sverdlik. "While the median annual expense growth rate decelerated to 5.7% from 7.1%, annual revenue growth rate declined faster, to 4.6% from 6.1%."

Drivers of the lower revenue growth include lower reimbursement rates, shift to outpatient care, increased merger and acquisition activity, and increased ambulatory competition. The lower expense rate was largely achieved through better control of labor and supply costs.

Another emerging trend is a large jump in hospitals reporting operating deficits and lower absolute operating cash flow in 2017. The medians show 28.4% of hospitals with operating losses, which rose from 16.5% in 2016. The 59% of providers reporting lower absolute operating cash flow is more than double the 24% reported in 2015 and the highest percentage in five years.

Moody's expects NFP hospital margins will continue to be suppressed through 2018 after median margins fell to an all-time low of 1.6% operating and 8.1% of operating cash flow.

7 things you should take away from your National Sales Meeting
Industry veteran and CEO of Preferred Marketing Programs Gary Gustafson has assembled a great list of 7 things you should include in your National Sales Meeting.

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John Pritchard


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