1. Contracting and Implementation Strategies: Custom Packs Case Study Iowa Health System Consolidated Services and Kimberly-Clark Health Care

2. SPEAKERS April Fitzer –Vice President of Contracting, Iowa Health System Consolidated Services Susan Meyer –Central Area Sales Director, Kimberly-Clark Health Care

3. AGENDA IHSCS, LC Kimberly-Clark Health Care Case Study Summary

4. IHSCS, LC Iowa Health System Consolidated Services Established in 1999 Wholly owned subsidiary of Iowa Health System Services include: –Supply, capital and service contracting –Dedicated Distribution Center (DDC) –Print shop –Laundry –Custom Packs

5. IHSCS, LC IHSCS Supply Chain = $250M

6. KIMBERLY-CLARK Kimberly-Clark Health Care –Mission To deliver innovative healthcare solutions supported by in-service training, clinical research and accredited education that you can depend on to meet the demands of your fast paced world. –Preventing healthcare-associated infections or finding surgical, digestive health, or pain management solutions

7. KIMBERLY-CLARK Product Expertise Responsive Customized Solutions Ongoing Education –Accredited continuing education –Complete product training and in-servicing Utilization Reviews –Incorporate best practices –Evidence based recommendations –Deliver cost savings metrics

8. KIMBERLY-CLARK Focus on Key Specialties –Orthopedics, Ob/Gyn, General and Cardiovascular Extensive Benchmarking Standardization –Product standardization, product utilization –Process efficiencies –Promotes component level understanding –Provides consistency

9. CASE STUDY IHSCS Custom Packs Operation –Opened February 2008 –Owned and operated inside Dedicated Distribution Center –Produces 2400+ packs per month –Projected 5-year savings of $2.8M –Partnerships include Kimberly-Clark, O&M, ACS

10. CASE STUDY Benefits –Increased control of components Direct contracts for all components Utilization and standardization Manage changes: Turnaround time and frequency –Increased control of cost Distribution Components Labor

11. CASE STUDY Kimberly-Clark’s Role –Drapes and gowns supplier –Drive costs down via committed contract –Shared risk targets Utilization reviews Standardization

12. CASE STUDY Phase I: Product Implementation –Product Cross References Engaged clinicians Documented approval Reviewed all custom packs –Collaboration KC and ACS representatives engaged

13. CASE STUDY Phase I: Contract Implementation –Data synchronization –Kimberly-Clark’s relationship with O&M provided seamless contract loads Distributor friendly –Proactive communication allowed for timely corrections before contract loads

14. CASE STUDY Phase II: Utilization Review –OR UR Projected savings over $460k AAMI guidelines: Drapes match procedure –Reprocessing and recycling focus –Collaboration KC and ACS representatives engaged

15. CASE STUDY Business Reviews –Formal semi-annual reviews KC, O&M and ACS –Constant information exchange Operational targets Spend Rebates Utilization of products Process improvements

16. SUMMARY Best Practices –Market share commitments –End user involvement –Management of standardization, utilization –Data synchronization –Collaboration of all parties –Ongoing business reviews