The 2023 Gartner Healthcare Supply Top 25; Read the December issue of JHC; Mayo Clinic achieves Magnet designation for nursing excellence; plus Jobs!

December 15, 2023

Hello NAW Subscribers -

I hope you like this issue of National Accounts Weekly.

Sincerely,

John Pritchard

President of ANAE

Publisher of The Journal of Healthcare Contracting

The 2023 Gartner Healthcare Supply Top 25

The Gartner Healthcare Supply Chain Top 25 for 2023 identifies, celebrates and profiles the health systems demonstrating excellence in supply chain management. Now in its 15th year, the Gartner Healthcare Supply Chain Top 25 is an all United States health system ranking. Join this free supply chain webinar, which guides health-system chief supply chain officers (CSCOs) to build more robust supply chains that improve patient health, act responsibly and provide value.

Discover this year’s Gartner Healthcare Supply Chain Top 25 health systems
Get supply chain best practices that will improve patient health, align with ESG goals and provide tremendous value
Learn how leaders are applying digital supply chain strategies to improve performance

Read the December issue of JHC

Read the December issue of The Journal of Healthcare Contracting to learn more about women leaders in supply chain.

In this issue, you will find stories like:

Personalized Virtual Care
Cleveland Clinic announces expansion of Community Health Workers Program
Walmart Health's Big Push
and more!

Maximizing value in a complex purchasing environment

The talk of 2023 has been all about improving the bottom line in healthcare. Survey results published by AHRMM earlier this year, showed that 78% of supply chain respondents were seeking cost efficiency above all other priorities.

The pressure to examine dollars spent has procurement leaders reconsidering purchasing decisions that were once easily rubber stamped. In the past, a status quo of “auto-renewing” existing arrangements may have felt sufficient. If surgical teams appeared satisfied with what they were using, and the investment was unquestioned previously, then it could be deemed “safe.”

But in today’s world, the increased level of fiduciary responsibility has procurement leaders reevaluating…

With this reconsideration has come an increase in capital trials, and they are bringing substantial value with them. Procurement leaders are also being more meticulous in their consideration process, digging deep into lifetime costs versus a comparison at face value. What they’re discovering is far more impactful than many would have initially imagined.

Mayo Clinic Health System in Northwest Wisconsin achieves Magnet designation for nursing excellence

Mayo Clinic Health System in Northwest Wisconsin has achieved Magnet designation, the highest national honor for nursing excellence, from the American Nurses Credentialing Center (ANCC).

Mayo Clinic Health System received the recognition on Nov. 29 as a reflection of its nursing professionalism, teamwork and superiority in patient care. The American Nurses Credentialing Center’s Magnet Recognition Program distinguishes organizations that meet rigorous standards for nursing excellence.

Mayo Clinic Health System in Northwest Wisconsin includes hospitals in Barron, Bloomer, Eau Claire, Menomonie and Osseo, and clinics in 10 communities across the region.

Research demonstrates that Magnet recognition provides specific benefits to healthcare organizations and their communities, such as:

Higher patient satisfaction with nurse communication, availability of help and receipt of discharge information.
Lower risk of patient falls and lower hospital infections.
Higher job satisfaction among nurses.
Lower nurse reports of intentions to leave their positions.

Major Changes Driving the Healthcare Supply Chain's Evolution

Gartner just released its list for the Gartner Healthcare Supply Chain Top 25 for 2023, a health system ranking system that shows the strenght and health of the top 25 healthcare supply chains across the country. Eric O'Daffer, research vice president for Gartner, wrote a blog for Supply Chain Management Review that covers the five major changes that drove the evolution of the healthcare supply chain.

Maturity of the healthcare provider supply chains

"This advancement reached a new milestone in 2021 when we decided that healthcare providers had emerged to the point of needing their own Top 25, with the maturing life sciences companies and retailers better suited to be ranked among companies featured in Gartner’s all-industry Global Top 25. Over the past 15 years, things have evolved. Perhaps the best indication is the evolution of the title chief supply chain officer from nearly zero in 2009 to now accounting for 34% of the titles of top leaders in the healthcare supply chain. Another example was the growth beyond sourcing of mostly medical surgical products to an increased focus at mature organizations with five-year strategies on clinical alignment, sourcing, logistics, risk, ESG and analytics."

Growing size and the role of governance

"Governance and span-of-control have taken center stage. Size of the enterprise has grown and so have the areas under supply chain influence to include listening to end users, setting specifications, sourcing, delivering and holding the organization accountable. Our benchmarking initiative consistently shows that a fully counted supply chain represents 36% of the operating expense of a health system."

Disruption response builds risk and resiliency maturity

"By 2018, disruptions primarily to the IV solutions manufacturers in Puerto Rico from Hurricane Maria accelerated leaders in the industry and the pandemic cemented the need for maturation. A recent research project with Healthcare Industry Resilience Collaborative (HIRC) shows that 56% of the health systems polled have independent risk and resiliency teams. Of the health systems surveyed in Gartner’s 2022 organization design research, 46% indicated that risk management is a top-three priority for investment in the next three to five years."

The rise of digital supply chain

"The progress has been mighty with service-line analytics maturity, the advent of digital supply chain leaders and control-tower technology all taking on growing importance. In our organization design research, 81% of supply chain leaders indicated digital supply chain was a top-three area of investment in the next three years. Digital touches everything including risk and ESG."

ESG initiatives to the forefront

CEOs at leading health systems are supporting all the facets of ESG from diversity spending to sustainability to community health. The recognition that supply chains impact all these initiatives directly and that most health systems are large employers in every region they serve makes this a great place to make an impact.

Community Health Systems completes divestiture of three Florida hospitals to Tampa General Hospital

Community Health Systems announced that certain subsidiaries of the Company have completed the divestiture of Bravera Health Brooksville (120 licensed beds) in Brooksville, Florida, Bravera Health Spring Hill (124 licensed beds) in Spring Hill, Florida, and Bravera Health Seven Rivers (128 licensed beds) in Crystal River, Florida, along with their associated assets, physician clinic operations and outpatient services, to Tampa General Hospital and certain of its affiliates for approximately $294 million in cash, inclusive of estimated working capital and other purchase price adjustments.