Volume 44| February 28, 2019
Insights-Trends-Opinions
Hello National Accounts Executives,

My Top 5 Hopes for 2019

In years past I have done predictions for a new year. For 2019, I am going to change it up a little and switch from predictions to hopes.

  1. Cybersecurity is here to stay. Everything is on the network today, from handwashing technology to coffee machines to wearables and devices. I hear so much concern and angst about the terms and conditions that cybersecurity adds to the contracting process. Hopefully, some governing body or association will get involved and help trade partners implement a best-in-class practice and protocol for stakeholders to follow.
  2. Risk-based contracting has a bright future in healthcare, and can be the next great iteration to create substantial value in the contracting arena. I’ve often asked Supply Chain Leaders and Suppliers for examples of risk-based contracts they have in place, and the examples to date have been underwhelming. It is my hope that in 2019 we start to see some meaningful collaborations that demonstrate the possibilities that risk-based contracts can bring.
  3. Purchased services has been high on many Supply Chain Leaders’ radar for the last few years. I worry there has been a lot of talk about reigning Purchased Services in, but the progress has been underwhelming. My hope is that we start to see meaningful progress in this area by some of the marquis IDNs, and that they share their stories. There is no better way for IDNs to launch a meaningful initiative than by using a roadmap from a best-in-class system.
  4. Career laddering is so important to Supply Chain departments for successful secession plans. With 3-4 generations in the workforce, it is more important than ever to get tomorrow’s leaders engaged today, and career laddering is a great way to do that. My hope is we see more of today’s leaders mentoring and nurturing tomorrow’s shining stars. Supply Chain Leaders will find this to be a competitive advantage in attracting and retaining the nation’s best and brightest.
  5. Complexity seems to have crept into the contracting process the last decade, as IDNs chase more value. You see this in many ways, whether it’s IDNs starting their own GPO or a distribution center. This gives the IDN more control on what product comes in, but I think an argument can be made that it might increase the cost of doing business for Suppliers to do business with that system. My hope is that we see more collaboration in finding ways to reduce complexity in the contracting arena.
I’d love to hear your hopes for 2019! 

John Pritchard
jpritchard@ShareMovingMedia.com
(770) 263-5262

Enjoy back issues of National Accounts Weekly by clicking here
See who is presenting in Nashville May 16-17
IDN Insights East is back this year in Nashville on May 16-17! The IDN Insights meeting highlights some of the most progressive, largest healthcare systems in the East. Come network with your peers and customers while learning how large IDNs measure successful contracts, the challenges these health systems are facing, what successful supplier/provider relationships look like, and much more!

Topics include:
  • Coaching suppliers on how to put together a value proposition that will help IDNs drive a clinically integrated supply chain
  • 7 things you can do to get the most out of your GPO
  • Deep dive look into Geisinger Health System
  • 5 imperatives suppliers need to know to win over super tanker IDNs
  • Journey at Sloan Kettering and the modernization of their supply chain


Space is limited!

For questions please contact Anna McCormick at amccormick@sharemovingmedia.com 
Free Webinar

6 Essential Rules of Negotiating with $1b or Larger Organizations
The Association of National Account Executives is partnering with RAIN Group to bring you the 6 Essential Rules of Negotiating with $1b or Larger Organizations webinar. RAIN Group is a global sales training and performance improvement company that will show you how to unleash your sales potential. Hear from Mike Schultz, President of RAIN Group, on March 11, 2019 at 2 PM EST. 

Key takeaways from this webinar:

• Develop and improve sales strategy, process, messaging, and talent
• Enhance sales capability through world-class sales education
• Design and execute strategic account management initiatives
• Increase effectiveness of sales management and coaching

For more information about ANAE, please contact Anna McCormick at amccormick@sharemovingmedia.com

Vizient Announces 44 New, Renewed or Expanded Member Agreements
The health care organizations with new, renewed or expanded member agreements in the third and fourth quarter of 2018 include:
  • Augusta Health Care, Inc.
  • Baptist Health Care Corporation
  • Bozeman Deaconess Health Services
  • Butler Health System
  • Calvert Health System
  • Centra Health Inc.
  • Cooperative Services of Florida
  • Cottage Health
  • Covenant Health
  • Dana-Farber Cancer Institute, Inc.
  • Deaconess Health System
  • Englewood Hospital and Medical Center
  • Fairview Health
  • Fayette Regional Health System
Survey: 44% of Physicians Employed by Hospitals

A recent survey shows some shocking statistics about physicians and physician practices. By the numbers;
  • 168k physicians are now employed by hospitals, up from 94k in 2012
  • 44% of all Physicians are now employed by hospitals, up from 26% in 2012
  • 80k Physician offices are owned by Hospitals, up from 35k in 2012
  • 31% of Physician practices are owned by hospitals, up from 14% in 2012

Check out the full report for more stats and regioanality.

Wake Forest Baptist Health Saved $3.6 Million on Implants
Wake Forest Baptist Health, an academic health system made up of five acute care hospitals and more than 1,500 beds, enlisted Premier to tackle the rising costs of high-value implants in 2017. As one strategy that was part of a total cost management approach to tackling variation and standardization in care delivery and operations, the high cost of devices and implants used by surgeons represented a major opportunity to improve margins, as these supplies represent one of the highest cost categories for most health systems. Working with Premier, Wake Forest Baptist targeted high-cost implants used in five disease states, including spine, joint arthroplasty, cardiac rhythm management, trauma and neuromodulation, accounting for more than $45 million in spend.

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John Pritchard


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