Materiel executives and the managed cost continuum in a capitated environment

Strategies that involve supplier partnerships and pose high risk for both hospitals and suppliers are an increasing trend. The materiel management professional who is proactive and able to assess risks in a managed care contractual environment will be the winner as materiel management becomes a network function rather than individual hospital function.

Reengineering materiel management using computer technology

The Materiel Management Department in today's hospital is in a uniquely advantageous position. It can better support the hospital's mission by applying current techniques in material management systems automation together with current computing technology as part of a broad-based reengineering process. Materiel management executives, suppliers, software developers, and hardware manufacturers now have all the necessary tools to create and implement a flexible, cost-effective, complete, paperless system. The model system offers tremendous advantages in terms of increased productivity and reduced total cost. This article discusses the process and the tools and techniques that should be considered.

Materials management--a department of one

This article is the result of long and serious thought about the future direction of healthcare and, more specifically, of materials management. As a number of trends emerge, particularly those that already exist in other industries, potential applications of these trends may also apply to materials management. While not all of these concepts and ideas are currently in practice in healthcare settings, the purpose of this article is to initiate thought, conversation, and evaluation of these models and applications.

Reducing computer hardware service costs

This article reviews the process of designing and launching a group-purchasing effort to significantly reduce the single most expensive line item in the computer operating budgets for 16 Massachusetts hospitals.

Tomorrow's materiel management executive today

As materiel management executives in today's market, the challenges of not only operating effectively but with fewer resources is a reality that has no end in sight. The role of the materiel executive in hospitals is moving from supply manager to resource consultant. This may be quite appealing to many of us; however, not all are prepared to assume these responsibilities. As a result, we find ourselves overwhelmed with information and examples of case studies from different facilities describing how they are resolving their individual issues. Reactions to these changes are met in different ways, ranging from marveling at others' imaginations to fear from not understanding how to commit to these radical new processes. Is there a proper way or a mold to use? I suggest not.

For the times they are a-changin'

Today, as we deal with managed care, vertical integration, mergers, new technologies, diagnosis related groups, stockless or just-in-time distribution, capitated contracts, consignment, health maintenance organizations, preferred provider organizations, total quality management/continuous quality improvement, reengineering, federal regulations, care mapping, patient focused care, and so forth, it is obvious that the only thing that is constant is change. "For the times they are a changin."

Reengineering hospital materiel management

Reengineering involves significant change and dramatic rethinking of the business process. The expected result of these changed processes is dramatic improvement. Hospital cost pressures and technological change necessitate review or reengineering the process to enhance customer service at a lower cost. Three areas that yield significant results include reducing the cost of purchasing, implementing new technologies, and empowering teams to accomplish customer driven goals.

Reengineering materiel management for strategic placement

The future of a hospital's materiel management function will depend on how well aligned it is with the institution's strategic direction. A sleek, customer-directed, information-rich supply process will provide the competitive edge. A reengineering mindset is needed to meet the challenge.

Product standards committees today and tomorrow

The results of a survey of product standards committees conducted by the JOURNAL OF HEALTHCARE MATERIEL MANAGEMENT show that most hospitals have such a committee, chaired by the materiel manager. Despite the fact that respondents named 49 different disciplines as possible members of the committees and 100% attendance is experienced less than a quarter of the time, most respondents said they had the right number of people on their committee and that the committee was effective or very effective. With more facility affiliations in the offing, purchasing decisions will be made at a corporate level. To be viable in the future, the products committee will have to transform itself into a utilization review and cost oversight committee, and drastically reduce its membership.

Alternate care sites. The challenges for GPOs, suppliers and materiel management

As the United States healthcare delivery system evolves, the alternate care site market is creating challenges and opportunities for materiel managers, groups and alliances. To be effective, an alliance or GPO must provide value. Many network integrators are setting up wellness and "telephone triage" programs to keep people from entering the continuum of care at all. Alternate care sites will face the same cost constraints presently being felt in many hospitals. GPOs and alliances will therefore have to provide value to these sites in ease of use, meaningful benefits, easy administration, and working with the network and distributors. Materiel managers can play an important role by developing product standardization among sites, rationalizing distribution to sites by using one or perhaps two distributors to serve all of the alternate site providers in the network, using group contracts to lower acquisition prices and providing greater services.

Outfitting your hospital for the new wave of robots

Automated materials handling systems have provided dramatic labor savings and efficiency benefits to healthcare facilities. A growing trend is the use of a new breed of service robots that provide automated materials handling without major modifications to the existing building. The robots navigate through hallways, go through doors and ride elevators using a computerized controller that contains a layout of each floor of the hospital; the robots do not rely on any type of physical track to guide them on their way. The robots are programmed to pick up or deliver supplies to nursing stations or other departments, and determine the best route. Purchase and rental options exist at a substantial savings over human labor.

How EDI will redefine materials management

Supply expenses and the related administrative costs are a big-ticket item for America's hospitals. As a result, more materials managers are investigating the use of EDI to cut overhead costs and minimize the need to keep huge stockpiles of supplies. In fact, some envision a day when the routine ordering of supplies will no longer be necessary. But getting there won't be easy. First, hospitals must make small, incremental steps toward automation. And these steps may be the hardest because they involve creating a new way of doing business.

Health care reform and the hospital supply chain

With health care reform, hospitals will be differentiated in the marketplace by how well they manage the costs of services. Because products will be market priced, hospital materiel managers will have to minimize all other related acquisition costs. The key opportunities will be in changing processes to eliminate non-value added administrative, supply chain, and process activities and their attendant costs.

How changes in healthcare delivery will impact materiel management

Materiel management personnel undoubtedly believe that in the past they have done all within their power to cut costs, increase efficiency and comply with their facility's productivity requirements. However, with healthcare reform and associated changes, it will be necessary for them to develop additional creative ideas--and implement innovative information system solutions--to improve the materiel management operations. EDI and decentralized inventory management at remote locations will become prominent as health care continues to move out of the hospital. Closer working relationships with physicians and other providers in coordinated networks to match cost-effective products to improved clinical outcomes will occur. And with additional regulation, materiel managers can, ironically, expect increased demand for documentation.