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A Formula for Success Standards and Communication Product formularies help drive savings and create standards for multiple items in a large integrated.

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Presentation on theme: "A Formula for Success Standards and Communication Product formularies help drive savings and create standards for multiple items in a large integrated."— Presentation transcript:

1 A Formula for Success Standards and Communication Product formularies help drive savings and create standards for multiple items in a large integrated delivery network.

2 Cheri Berri-Lesh, CMRP Value Analysis Manager

3 A picture is worth a thousand words

4 Knee Brace in MMIS (Lawson)

5 Knee Brace in Visual Formulary

6 Integrated Delivery Network Member Governed 600,000 Members 25 Medical Centers 9,750 Staff 1,055 Providers Insurer and Delivery System Operating Revenue $3B Revenue $3B

7  To achieve best contract pricing   Reduction in variation  No durable medical equipment license  Some Healthcare Common Procedure Coding System (HCPCS) codes eliminated  Create standard process  Changing the culture of “if I want it, I get it” to one of collaboration and standardization Reasons to Consolidate & Standardize

8 How it Began!

9 Gemba Process Walk

10 Road to Reducing Variation

11 Representation of Initial Choices

12 Physician Attendance Varied

13 Orthopedic Vendor Representatives  Key objectives included standardization & cost savings  Partnered with Materials Management to captured all product categories and annual usage  An opportunity to identify products improvement or elimination  Identified products for item and cost savings reduction Partner Collaboration

14 2008 $521, Items Orthopedics Soft Goods - Before

15 2008 $521, Items 2011 $419, Items REDUCTION Spend = 19.5% SKU = 65% Manufacturers From 84 to 29 Orthopedics Soft Goods - After

16 Sample of Ortho Soft Goods Visual Formulary

17  More commodities added ◦ Wound Care: Advanced & Acute ◦ Cast, Padding & Splinting ◦ Medical Tapes ◦ Disposable vaginal speculum systems ◦ Infection Prevention Expanding Use of Visual Formularies

18

19 Product Standards & Formularies

20 Advance Wound Care - Before

21 Advance Wound Care - After

22 Cast, Padding and Splinting

23 Tapes

24 Disposable Vaginal Specula

25 Infection Prevention: Hand Products

26

27 Infection Prevention: Face Protection

28

29 Infection Prevention: Nonsterile Gloves

30  Orthopedic physicians, physician assistants & technologists  Wound Care RN & University of WA Professor  Infection Prevention Team  Perioperative Services  Safety and Environmental Health Officer  Materials Management Specialists Partnering with Experts for Visual Formularies

31 The Benefits to a Visual Formulary Visual Formulary Benefits Standard Work Clear Communication Patient & Staff Safety Rapid ID of Errors or Defects Increases Contract Compliance Provides Shopping list Reduction in Spend

32 Challenges addressed  Consolidating needs of multiple physicians  Working with preferences versus needs  Seeking agreement  Large geographic area  Finding quality pictures  Formatting for ease of viewing Summary

33 Steps/process created  Order history review  Collecting multiple product samples  Product demonstrations road shows  MMIS cleanup including description improvements  Formatting images  Entering into Excel  Engaging with staff & active listening Summary

34 Key players involved  Materials Management  Participating departments  Vendors  Distributors  Physicians & nurses  Infection Prevention Summary

35 Outcomes achieved  Established supply formularies  Visual communication tool used as shopping list  Defines best practices  Managed by Value Analysis Program  Reduced costs & SKU’s  Promoted Lean visual systems in other areas Summary

36 Pre-requisites  Product familiarity  Engaged vendors and distributor  Engaged Materials Management staff  Support of Purchasing & Contracting Staff Summary

37 Questions?

38 Contact information Cheri Berri-Lesh


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