CONGRATULATIONSWSHMMA!1964 – 2014

50 YEARS OF GROWTH AND SUCCESS!

HEALTHCARE SUPPLY CHAIN

PAST PRESENTFUTURE

Presented by Jack Gallagher April 17th, 2014

THIS MATTERS TO YOU!

AND IT’S URGENT

LOOK CLOSELY & CONNECT THE DOTS

WHERE DID YOU START?

WHERE ARE YOU NOW?

WHERE ARE YOU GOING?

THE PAST

ANCIENT HISTORY: 1964 – WSHMA IS BORN

• CIVIL RIGHTS• “RIGHT” TO HEALTHCARE• VIETNAM WAR• MASSIVE INFRASTRUCTURE• LOW TECH HEALTHCARE• FREE MONEY• SPACE AGE INFANCY

“BASEMENT MENTALITY”

THE TIPPING POINT – INFLATIONARY COST SPIRAL

Healthcare Cost per Capita Military Spending

SO WHAT WENT WRONG?• 15%+ INFLATION• SHIFT IN PERCENTAGE OF GDP FROM MILITARY TO

HEALTHCARE• NO TECH BECOMING HIGH TECH• OUR PROMISE

THE FIX? CUT COSTS

THE METHOD? DRGs

AND HERE WE ARE TODAY

(THE PRESENT)CONFLICTING REGULATIONS

COSTS CONTINUE TO ESCALATE

CONFUSION

HEALTHCARE TECH WARS

AND HOW ARE WE DOING?

Healthcare Cost per Capita Military Spending

SOME ARE REACTING SOME ARE RECREATING ALL ARE WORRIED

FRANKLY, IT’S A MESS!

THE WORLD’S VIEW NOW

AND THE ANSWER IS…..CUT COSTS (AGAIN)BUT

• HIGH TECH DEMANDED• DOMINANCE & COST OF IT• STAFFING DEMANDS• AGING FACILITIES / OBSOLESENCE• DRUG SHORTAGES• CLINICAL SPECIALTIES• ACCOUNTABILITY REQUIREMENTS

• DELAYED FACILITY IMPROVEMENTS• SUPPORT STAFF CUTS• MERGERS, AFFILIATIONS, BUY OUTS• COLLECTIONS ACTIVITY• MARKETING• PRIVATIZATION• BUSINESS MODELING

BOARDS & “C” SUITE TOP CONCERNS NOW

• ACCESS TO CAPITAL• MERGERS & ACQUISITIONS• PHYSICIAN RECRUITMENT• COMPLIANCE ISSUES• REVENUES• CONSUMERISM /

TRANPARENCY

• RAPID TECHNOLOGY GROWTH• DEMAND FOR LATEST

TECHNOLOGY• DRUG SHORTAGES• COMPETITIONAL THREATS• LONG TERM CARE

(BOOMERS)

WHAT ARE THEYNOT

LOOKING AT?

THE FUTURE

YOUR FUTURE YOUR

OPPORTUNITY!

LOOK AROUND YOU & CONNECT THE DOTS • THE PAST:

• LOW TECH• COSTLY• INEFFECTIVE CONTROLS

• THE PRESENT:• HIGH TECH• COSTLY• MORE CONTROLS• INEFFECTIVE OUTCOMES• COMPETITION• CONSOLIDATION

• THE FUTURE:• CONSUMERISM• SUPER TECH• BUSINESS MODELS

LOOK AT CONSUMERISMDEMAND FOR HIGH QUALITY

DEMAND FOR LOW COSTDEMAND FOR ACCESS

DEMAND FOR TRANSPARENCY

MEANS FOR YOU:

DELIVER RELIABLE PRODUCTS AND SERVICESAGGRESSIVE COST AND SERVICE CONTRACTINGSTRATEGIC SOURCINGLEAN DISTRIBUTIONSTATISTICAL FORECASTINGINTERNATIONAL MARKET SAVVY

SOUNDS LIKE:

COSTCO TOYOTABOEING AMAZONDELL NORDSTROM FORD

LOOK AT SUPER TECHNOLOGYARTIFICIAL IMPLANTS

ROBOTICSDRUG TREATMENTSDNA MANIPULATION

ARTIFICIAL INTELLIGENCENON INVASIVE TREATMENTS

MEANS FOR YOU:TECH PURCHASINGFAST INNOVATIONSFAST OBSOLESENCESERVICES OVER SUPPLIESWORLD MARKETSDECENTRALIZED TREATMENT (VIRTUAL

LOCATIONS)

SOUNDS LIKE:MICROSOFT STAR WARS I, ROBOT WEIRD

SCIENCESONY FACEBOOK APPLE GOOGLE

LOOK AT BUSINESS MODELSPROFIT & LOSS

STRATEGIC PARTNERINGMARKETING

FINANCIAL MANAGEMENTEXPERT LOGISTICS

CUSTOMER SATISFACTIONCOMPETITIVE DISTINCTION

MEANS FOR YOU:COST / BENEFIT RETURNSSTRATEGIC PURCHASES & SOURCINGLEAN LOGISTICS & OPERATIONSMARKET RESEARCH / KNOWLEDGESALES & MARKETING INFLUENCESSTOCK HOLDERS RETURN

SOUNDS LIKE:ANY OTHER SUCCESSFUL BUSINESS IN THE

WORLD!

THIS MATTERS TO YOU!

AND IT’S URGENT

NOW!!

PREPARE FOR YOUR FUTURE NOW• THINK “C” SUITE• ESTABLISH YOUR NICHE AS A LEADER• ESTABLISH SUPPLY CHAIN AS “STRATEGIC IMPERATIVE” vs

“FUNCTIONAL REQUIREMENT”• PREPARE YOUR CREDENTIALS• LOOK OUTSIDE HEALTHCARE• THINK AND GROW OUTSIDE THE BOX

YOUR FUTURE IS UP TO YOU