Hello NAW Subscribers -
I hope you like this issue of National Accounts Weekly!
We'll hear how large IDNs measure successful contracts, what successful supplier/provider relationships look like, and we'll take a deep dive into supply chains for CommonSpirit Health and Scripps Health.
It will highlight some of the largest and most progressive healthcare systems in the Western U.S. We look forward to seeing you there.
Sincerely,
John Pritchard
President of ANAE
Publisher of The Journal of Healthcare Contracting (JHC)
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Vizient joins Healthcare Industry Resilience Collaborative
As the nation’s healthcare providers continue to be impacted by supply chain disruptions, Vizient, Inc. announced it has joined the Healthcare Industry Resilience Collaborative, a nonprofit healthcare supply chain association that champions standards and best practices in supply chain resiliency. The provider-led, supplier-supported organization brings together key stakeholders across healthcare to align on common solutions to supply disruptions that impact patient care.
Vizient will lend its expertise as the nation’s largest healthcare performance improvement company to include a focus on resiliency score-carding, data and analytics and sourcing expertise. The HIRC membership is the latest in a series of initiatives Vizient has undertaken to bolster supply assurance across healthcare.
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CommonSpirit Health, Scripps Health to be featured at IDN Insights West
Please join us for The Journal of Healthcare Contracting’s IDN Insights West meeting June 2-3, 2022, hosted by Arizona State University at its Scottsdale, AZ, campus.
This meeting highlights some of the most progressive, largest healthcare systems in the West. Attendees will hear how large IDNs measure successful contracts, the challenges these health systems are dealing with through a pandemic, a deep dive into Mayo Clinic’s supply chain, what successful supplier/provider relationships look like, and much more!
Confirmed Speakers:
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Bruce Gilmore, Director, Enterprise Laboratory and SW Region Supply Chain Operations, Mayo Clinic
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Allison P. Corry, Chief Supply Chain Officer, Supply Chain Organization, Intermountain Healthcare
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Chad Mitchell, AVP, Contract Services, Vizient
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Elizabeth Eisenberg MSN, RN CVAHP, Director, Clinical Value Analysis, Scripps Health
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Gene Schneller, Co-Founder, Healthcare Supply Chain Excellence, Professor, Supply Chain Management at Arizona State University
- Dee Donatelli and Barbara Strain, moderators for our Value Analysis Panel
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Kathryn Carpenter, VP Sourcing, Contracting, Clinical Strategy and Implementation, CommonSpirit Health
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Dan DeLay, System Senior Vice President, Supply & Services Resource Management, CommonSpirit Health
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Retailers push into primary care
(Repertoire Magazine)
Major retail brands are pushing into the primary care space, attempting to capitalize on a a different form of market share. A December 2021 study published in Health Affairs showed that from 2014 to 2018, hospital and health system ownership of physician practices increased by 89%, from 24% to 46%. But increasingly, health systems are competing for the physician market with health insurers, drugstore chains and other retailers.
Brands like Amazon, CVS and Walgreens are continuing to invest in primary care services, while Dollar General, Best Buy and Walmart are making the first forays into the primary care space within the last couple of years.
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CommonSpirit Health names new CEO
CommonSpirit Health announced that following a national search, Wright L. Lassiter III will succeed Lloyd H. Dean as its next CEO starting on Aug. 1. Dean announced last fall that he would retire this year.
Lassiter brings 30 years of experience working in large, complex health systems, most recently at Henry Ford Health. As CEO since 2016, Lassiter led Henry Ford through the COVID-19 pandemic, significantly expanded its footprint and grew its revenue, and earned recognition for the system’s focus on employee well-being and a commitment to diversity, equity, inclusion and social justice.
Lassiter is the current Board Chair of the American Hospital Association and is known as a powerful voice for improving care and a champion for health equity.
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End Drug Shortages Alliance announces board of directors, mission, vision statements
The End Drug Shortages Alliance, a newly launched collaboration of key stakeholders from across the health care industry, announced the appointment of its board of directors, including the chair and vice chair, as well as its mission and vision statements at its first all-member meeting. The meeting was held in the first quarter of 2022.
Eric Tichy, PharmD, MBA, FCCP, division chair, pharmacy supply solutions for Mayo Clinic was announced as board chair and Terri Wilson, RPh, CMTM, director, pharmacy, supply chain service at Children’s Hospital Association was announced vice chair.
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IU Health reports $358M net loss; labor costs climb 25%
(Becker's Hospital CFO Report)
Indiana University (IU) Health reported a net loss of $358.54 million for the first quarter of 2022 as its labor expenses soared, according to its financial results released April 28. The system had a net income of $330.5 million for the same period last year.
IU Health, a 16-hospital system, had $1.93 billion in revenue for the three months ended March 31, a 2.9% increase year over year from $1.87 billion. Its largest source of revenue was patient services, which rose 6.6% year over year to $1.79 billion for the first quarter of 2022 from $1.68 billion last year.
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Medtronic, GE Healthcare collaborate for growing need of outpatient care
Providing excellent care inside and outside of the traditional hospital is the new normal for patients, clinicians, and payers seeking more choices without compromising excellent outcomes. Medtronic and GE Healthcare have announced a collaboration focused on the unique needs and demand for care at Ambulatory Surgery Centers (ASCs) and Office Based Labs (OBLs). Under this new collaboration, customers can access extensive product portfolios, financial solutions, and exceptional service.
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Walgreens, VillageMD expand to Mass.
VillageMD and Walgreens Boots Alliance announced a goal to open more than 10 new Village Medical at Walgreens primary care practices in Massachusetts by the beginning of 2023. The first location is expected to open in May in Quincy followed by locations across the state including locations in the Boston area.
“VillageMD and Walgreens are working together to increase access to high-quality primary care coordinated with convenient pharmacy services across the nation,” said John Torontow, M.D., national medical director of Village Medical. “Our model empowers our experienced physicians and pharmacists to focus on comprehensive patient care, which results in better health for our patients and communities.”
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Frontiers of the Healthcare Supply Chain: Supply Chain by the Numbers
By John Strong
Co-Founder
Access Strategy Partners Inc.
With all the data out there, Frontiers© wants you to stop and ponder a few numbers we unearthed in the past couple of months.
Smart orthopedic implants are on the horizon, and at a cost estimated at $20,000 each. In fact, CMS has already aligned certain incentives for monitoring a patient’s joint replacement procedure to reimbursement. Developers say these are a sure-fire way to help improve outcomes. How will you evaluate this technology? The same article notes that the number of total knee replacements will grow from 1.4 million in 2025 to 3.4 million in 2040.
A January 2015 Forbes survey indicated that 24% of medical device manufacturers reported the biggest challenge in their business was “managing geopolitical risk.” We would argue that with rising tensions with China and Russia, that number is already growing exponentially in 2022. Healthcare providers need to seriously consider this risk with regard to their procurement strategies this year. In fact, the value of U.S. imports from China for pharmaceuticals and medical equipment, products and supplies reached $20.74 billion in 2019. Our foreign relations issues include “supply chain disruption and (reduced) manufacturing capacity,” according to Paul Keckley. How dependent is your supply chain on Chinese-made ingredients and finished goods?
As of January, between 8,000 and 12,000 containers containing medical supplies were being held up at U.S. ports. While we hope at press time the number will be lower, the fact is that this has caused shortages of commonly used, relatively inexpensive medical products that has driven prices higher. For example, there are currently plenty of aluminum crutches available at $40 per pair, but none at current contract prices of around $14 per pair. Is your sourcing strategy pivoting to the new realities of supply and demand beyond price alone? Are you considering the carbon-footprint of these cheap supplies or willing to pay more for U.S. made products?
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KARL STORZ
Sales Executive, Airway
Atlanta, GA
STRYKER
National Account Executive - Southeast
Nashville, TN
THERMO FISHER SCIENTIFIC
Healthcare System Executive - West U.S.
San Diego, CA
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John Pritchard
Publisher
National Accounts Weekly
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