Northwestern Memorial Healthcare
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Transcript of Northwestern Memorial Healthcare
Supply Chain Distribution & LogisticsImprovement Project
• Licensed Beds: 868• Annual Admissions:
• IP: 47,739 • ED: 80,696
• Annual Surgical Cases:• IP: 13,275• OP: 19,628
• Operating Rooms: 52• Operating Room Inventory:
• Owned: $14.1M• Consigned: $9.5M
• MMIS System: PeopleSoft • ORIS System: Cerner
Northwestern Memorial Hospital Profile
Ensure that investments in new products are safe and effective with defined measures for improved patient outcomes. (Medical Device Committee)
Leverage existing purchasing system that drive optimal workflow in the supply chain.
Optimize the cost of medical supplies and drugs by standardizing utilization, reducing variability, and increasing end user awareness.
Centralize controls, give back nursing time and improve cash flow by optimizing par levels, reducing the risk of expired product and automating replenishment .
Ensure contract compliance associated with price, terms, conditions, and NMH policy.
Goals
Supply Chain Portfolio
Exec Sponsors: Gary Fennessy, Nick Rave & Eric Conley
Strategic Sourcing
(Nancy Hensley)
David Wente
Contracting Management
(Jennifer McPherren)
Colleen Schmiege
Distribution & Logistics
(Brian Stepien)
Eric Hartlauf
Product Utilization
(Karen Anderson)
Arshia Wajid
Transaction Management
(Nancy Hensley)
Michael Manalo
Supply Chain Distribution & LogisticsOverview of Complete Supply Chain Strategic Redesign
Focus for IDN Summit Innovation Award
Supply Chain Distribution & LogisticsProblem Statement
Historically there was no centralized, standardized Inventory Management process in Surgical Services. This resulted in excess inventory, waste, inefficiency and manual replenishment practices and the potential for patient safety risks.
Key Issues/Concerns:• Clinical Time Spent Managing Supplies• Overall Awareness/Importance of Inventory Management• Inaccurate & Surplus Inventory• No Standardized Ordering Processes• Decentralized Consignment Management• Charge Capture Loss• Manual Processes• Waste (Expiration & Product Obsolescence)• Product Availability Issues
Develop a series of controls to optimize inventory levels, automate replenishment, increase charge capture, and minimize waste and ensure product availability to improve patient safety.
Key Deliverables:• Create “Implant Store”• Give Time Back to Nurses• Establish Standardized Ordering Controls• Reconcile Inventory• Increase Inventory Turns• Increase Charge Capture• Decrease Waste (Product Expiration)• Centralize Consignment Management• Automate Replenishment
Supply Chain Distribution & LogisticsGoal Statement
Objective:
Decrease Cost
Minimize Waste
Streamline Process
Maintain Quality Patient Care
Diagnostic Imaging/
Professional Services
Surgical Services
Physicians
Central Sterile
Supply Chain
Finance
Instrument Tray Standardization
Initiative
Supply Management
Transition
Slow Move/No Move Inventory
Reduction
Charge Capture Reconciliation
Process
Implementation of Expired
Product Reviews
Supply Chain Distribution & LogisticsCollaborative Project & Initiatives
Development of Internal Inventory
Turn Metrics/Goals
Workflow Redesign and Technology
Integration
Item Master Cleanse Initiative
Special Requests Elimination Controls
Phase IProcess Redesign
Phase IIAutomation
Phase IIIExpansion
• Centralized Surgical Services Inventory Management
• Created “Implant Store” • Inter-disciplinary Collaboration to Develop Standardized Controls (Consignment, Valuation, Expiration, Charge Capture)
• Implemented Interim Barcode Technology
• Implementing RFID Technology to Automate Inventory Management
• Reallocation of Resources to Centralize Remaining Departments
• Expansion of RFID Technology
• Integration to Automate Replenishment & Demand Planning
Supply Chain Distribution & LogisticsProject Timeline
Supply Chain Distribution & Logistics Hard Dollar Results
FY09 FY10 FY11 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 $665,040
$482,484
$397,247
Surgery Expired Inventory
FY10Q1 FY10Q2 FY10Q3 FY10Q4 FY11Q1 FY11Q2 FY11Q3 FY11Q4 $500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000 $3,315,259
Surgery Charge Capture Increase
FY09
FY10Q1
FY10Q2
FY10Q3
FY10Q4
FY11Q1
FY11Q2
FY11Q3
FY11Q4
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
$17,000,000
$18,000,000
$19,000,000 $18,176,703
$14,072,301
Surgery Inventory Value
FY09 FY10Q1 FY10Q2 FY10Q3 FY10Q4 FY11Q1 FY11Q2 FY11Q3 FY11Q43
4
5
6
4.3 4.2 4.2 4.1
4.8
5.2 5.2
5.5 5.5
Surgery Inventory Turns
54%
46%Patient Care ManagedSupply Chain Managed
1%
99%
Patient Care ManagedSupply Chain Managed
Supply Chain Distribution & Logistics Soft Dollar Results
Baseline Current
% of Supplies Managed
(Nursing Time Spent on Inventory Management)
Other Key Improvements• Streamlined Clinical Documentation• Improved Accuracy of Clinical Documentation • Improved Supply Availability for Patient Care• Complete, Real Time Visibility to Available Inventory
Supply Chain Distribution & Logistics Bringing Outside RFID Technology to Healthcare
Supply Chain Distribution & Logistics Next Steps
Short Term (3-6 Months)• Centralize and Implement RFID in the following Departments
• Cardiac Cath Lab• Interventional Radiology• EP Lab• GI Lab
Long Term (6-18 Months)• Develop Automated RFID Patient Billing/Documentation Tool• Integrate RFID Technology for Instrument Tray Tracking• Explore Opportunities in Pharmacy & Clinical Laboratories• Develop Online Physician Request Portal