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A Formula for Success Standards and Communication

A Formula for Success Standards and Communication Product formularies help drive savings and create standards for multiple items in a large integrated delivery network. Cheri Berri-Lesh, CMRP Value Analysis Manager. A picture is worth a thousand words. Knee Brace in MMIS (Lawson).

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A Formula for Success Standards and Communication

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  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. Insurer and Delivery System Integrated Delivery Network Member Governed 600,000 Members 25 Medical Centers 9,750 Staff 1,055 Providers Operating 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 $521,000 720 Items Orthopedics Soft Goods - Before

  15. 2008 $521,000 720 Items 2011 $419,000 250 Items Orthopedics Soft Goods - After REDUCTION Spend = 19.5% SKU = 65% Manufacturers From 84 to 29

  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. Product Standards & Formularies

  19. Advance Wound Care - Before

  20. Advance Wound Care - After

  21. Cast, Padding and Splinting

  22. Tapes

  23. Disposable Vaginal Specula

  24. Infection Prevention: Hand Products

  25. Infection Prevention: Hand Products

  26. Infection Prevention: Face Protection

  27. Infection Prevention: Face Protection

  28. Infection Prevention: Nonsterile Gloves

  29. 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

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

  31. 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

  32. 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

  33. Key players involved Materials Management Participating departments Vendors Distributors Physicians & nurses Infection Prevention Summary

  34. 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

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

  36. Questions?

  37. Contact information Cheri Berri-Lesh berrilesh.c@ghc.org

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