Central Ohio Hospitals Supplier Diversity Initiative

1. Central Ohio HospitalsSupplier Diversity Initiative

2. Contents • Who We Are • Overview of Our Work, Shared Goals • Diversity Basics • Supplier Diversity at • Mount Carmel Health System • Nationwide Children’s Hospital • OhioHealth • OSU Wexner Medical Center • Questions and Answers

3. Who we are Central Ohio Hospital Council

4. Who we are • Members of the Central Ohio Hospital Council are the 4 hospital systems in Franklin County. • Those systems operate 12 inpatient hospitals in Franklin County, hospitals outside of Franklin County, as well as free-standing emergency departments, outpatient and primary care facilities, surgery centers, home care, medical equipment and hospice care throughout central Ohio.

5. COHC Board of Directors Dave Blom, OhioHealth Claus Von Zychlin, Mount Carmel Steve Allen, Nationwide Children’s Steve Gabbe, Wexner Medical Center

6. COHC Mission • The Central Ohio Hospital Council serves as the forum for community hospitals to come together to address issues that impact the delivery of health care to central Ohioans. Through the COHC, member hospitals collaborate with each other and with other community stakeholders to improve the quality, value and accessibility of health care in the central Ohio region.

7. Who we are: mount carmel health system Mount Carmel is a Catholic system of four central Ohio hospitals — Mount Carmel East, Mount Carmel West, Mount Carmel St. Ann’s and Mount Carmel New Albany — as well as a free-standing emergency department, surgery centers, outpatient facilities, physician offices and community outreach sites. • Staff: 8,000 Associates and 1,500 on-staff Physicians • Volunteers: 1,000 • Staffed Beds: 2,000 • Visits and Admissions: 655,000 outpatients, 62,700 admissions, 218,483 emergency room visits • Births: 7,900

8. Who we are: nationwide children’s Nationwide Children’s Hospital is one of the country’s largest not-for-profit freestanding pediatric health care networks, including a pediatric research institute and 68 facilities extending out across Ohio. • Staff: 10,000 Associates and 1,000 on-staff Physicians • Volunteers: 900 • Staffed Beds: 541 • Visits and Admissions: 1,000,000 outpatients, 18,000 admissions, 84,000 emergency room visits • Surgeries: 27,000

9. Who we are: Ohiohealth OhioHealth is a not-for-profit, faith-based family of healthcare providers, including eight member hospitals, 11 managed and affiliated hospitals, more than 20 health and surgery centers, home care providers, medical equipment suppliers and hospice care throughout a 40-county area. • Staff: 17,000 Associates and 2,800 on-staff Physicians • Volunteers: 3,000 • Staffed Beds: 2,000 • Visits and Admissions: 2 million outpatients, 95,000 admissions, 346,000 emergency room visits • Surgeries: 60,000 • Births: 13,000

10. Who we are: osuwexner medical center The Ohio State University Wexner Medical Center is one of the largest academic medical centers in the country, and includes six signature programs: Cancer, Critical Care, Heart, Imaging, Neurosciences and Transplantation. • Staff: 18,000 Associates and 2,000 on-staff Physicians • Volunteers: 1,800 • Staffed Beds: 1,188 (1,300 after expansion) • Visits and Admissions: 1,485,147 outpatients, 56,592 admissions, 118,280 emergency room visits • Surgeries: 38,627 • Births: 4,482

11. Our Work, Shared Goals • Central Ohio hospitals strive to achieve the following goals : • Build business relationships with qualified diverse suppliers that positively impact patient care, community relations and social economics; • Build and support processes so that DBEs may compete on a fair and open field; • Identify and remove obstacles to market entry, customer access, and financial growth of DBE companies; • Collaborate with community partners and suppliers who support our commitment to supplier diversity; • Increase purchases of goods and services from DBEs, when fiscally responsible and operationally compatible.

12. DIVERSITY Basics • Recognized diversity classifications • Minority Business Enterprises (MBE): A business that is at least 51% owned and controlled by minority persons. Minority is defined as a U.S. citizen which is African-American, Hispanic American, Native American, Asian-Pacific or Asian - Indian Americans. • Women Business Enterprises: A business that is at least 51% owned and controlled by a woman. • Small or Disadvantaged Business Enterprise: A business that is socially and economically disadvantaged or under-utilized. • Disabled Veteran or Handicapped Owned Business: Those businesses owned by individuals with physical challenges or owned by disabled veterans.

13. DIVERSITY Basics • Accepted certifications • City, state, or federal agency • Regional or National minority council • Small Business Administration • National Women Businesses Corporation • Women’s Business Enterprise Council

14. DIVERSITY Basics • Memberships • Ohio Minority Supplier Development Council • VHA Supplier Diversity Advisory Group • National Minority Supplier Development Council

15. Mount Carmel

16. Program Objective • HealthTrust strives to maximize savings opportunities for its members through a comprehensive portfolio of contracts and other service offerings. In doing so, HealthTrust recognizes that having a diverse supplier base promotes competition, builds strong communities, drives creativity and creates opportunities. • HealthTrust is committed to providing minority, women and service disabled veteran owned enterprises (MWSDVE) an equal opportunity to compete for and earn contracts for the goods and services our members purchase.

17. Program Objective • HealthTrust strives to maximize savings opportunities for its members through a comprehensive portfolio of contracts and other service offerings. In doing so, HealthTrust recognizes that having a diverse supplier base promotes competition, builds strong communities, drives creativity and creates opportunities. • HealthTrust is committed to providing minority, women and service disabled veteran owned enterprises (MWSDVE) an equal opportunity to compete for and earn contracts for the goods and services our members purchase.

18. Background • HealthTrust Supplier Diversity Program has been in existence since the organization was launched in 1999. Over the years, the spend with diverse businesses have grown from $23 million to over $170 million in 2013. • Diverse companies matching a business need are routinely included in the competitive bid process. The portfolio of diverse contracts have grown from a handful when the program started to roughly 104 by the end of 2013. • As of 2013, there are 62 diverse suppliers on contract.

19. MWSDVE Certification • HealthTrust’s Supplier Diversity Program consist of minority, women and service disabled veteran owned enterprises (MWSDVE). • A company must be certified as a legal entity, organized to engage in commercial transactions and be 51 percent owned, controlled and operated by one or more minority, woman or serviced disabled veteran individuals. • Certifications from the following national organizations are recognized by HealthTrust: • Minority Business - The National Minority Supplier Development Council (NMSDC) or one of its regional affiliates • Minorities as a separate class consist of Black Americans, Hispanic Americans, American Indians and Asian Americans (i.e. Pacific Islanders, Eskimos, Aleuts, etc.). • Woman Business - Women’s Business Enterprise National Council (WBENC) • Serviced Disabled Veteran Business - Service Disabled Veteran Owned Small Business (SDVOSB)

20. Goals • Identify MWSDVEs opportunities to participate in upcoming HealthTrust contracting categories (i.e. medical devices, drugs, equipment, etc) • Assist in fostering relationships between MWSDVEBEs and HealthTrust membership • Strive to enhance the participation of MWSDVEs within the HealthTrust contracting process to facilitate their economic development. • Address obstacles to full participation of MWSDVEs in the HealthTrust contracting process • Educate and empower MWSDVEs to ensure their full involvement in the HealthTrust contracting process

21. HealthTrust Diversity Program Contact Information • For additional information about the Diversity Program please contact • Darrel Mogilles AVP Diversity Program: Darrel.Mogilles@healthtrustpg.com • Janet McCain Director Diversity Program: Janet.McCain@HealthTrustPG.com

22. Nationwide children’s

23. Supplier Diversity at Nationwide Children’s • Nationwide Children’s Hospital embraces inclusion as a way of doing business. • We view diversity as a strength and believe that developing a diverse supplier base will provide for higher quality services to our hospital. • Developing mutually beneficial relationships with a broad base of suppliers builds economic vitality in our community. • We seek to expand business relationships with diverse, local and environmentally conscious suppliers

24. Supply Chain Contracting • Buyers & Contract Administrators • Sourcing supplies, services and equipment • Ensuring fair and open access to Nationwide Children’s Hospital Business opportunities • Serving as a resource for current and prospective suppliers • Coordinating the bid process • Negotiating terms and conditions • Providing the best overall value for the hospital • Facilitating disputes and resolving service and invoicing issues • Monitoring supplier performance levels • Conducting business reviews

25. Procurement Profile Contracting – Supplies, Services & Equipment • Novation / Children’s Hospital Association (CHA) • CHA Independent Aggregation • Amerinet (Secondary GPO) • Local Agreements - negotiated and managed through Supply Chain or other responsible departments Logistics / Distribution • Cardinal Health - Primary • Medline and Owens & Minor – Secondary • Direct Shipping

26. Measuring Growth • Increase the spend with Diverse Suppliers

27. Measuring Growth • Increase the number of relationships with Diverse Suppliers

28. Getting Started • Get registered with Nationwide Children’s - register on our Web site at www.NationwideChildrens.org. Find the ‘About Us’ link, click ‘overview’, scroll to ‘Diversity and Inclusion’, click, then complete ‘Supplier Inclusion Application’. Registration is fast and simple and it’s your portal to opportunities with us. • Do your homework - The size and scope of Nationwide Children’s can be daunting. To best meet your needs, we encourage you to spend time researching how your company and services can best meet the needs of the hospital • Connect with the Contracting team - Contact the Supply Chain Operations department at (614) 722-4800 or email us at Inclusion@NationwideChildrens.org

29. 2014 Contracting Opportunities IT Opportunities Project Managers ETL Developers Value Added Reseller • Supply Chain Opportunities • Catering for Main Hospital • Dairy Products • Phototherapy • Janitorial Distribution • Minor procedure trays • Lancets • Outside form printing bid • Dental Distribution • Offsite Landscape and Snow Removal • Coffee Services for offsite and Main Campus • Reference Lab Bid • Facilities Opportunities • Furniture • Fixtures • General Medical Equipment

30. Key Success Factors • Get Certified • Register at www.NationwideChildrens.org. • Be flexible and responsive • Consider partnering with other firms • Be as innovative as possible • Do your homework • Determine your overall value proposition • Build relationships with the Contracting team

31. ohiohealth

32. OhioHealth Buying Model • GPO Relationships • Contracts with vendors on our behalf, offers consulting, incentive programs, data analytics • Primary: Novation/VHA • Secondary: Amerinet • Regional buying group: Midwest Purchasing Coalition (MWPC) • Premier Health Partners (Dayton), Community Health Network (Indianapolis) • Distribution Relationships (drug & supply) • Distributor stocks and sells product at the lowest unit of measure while administering pricing • Most non-Physician Preference Items (PPI) move through this channel • Primary: Cardinal Health • Secondary: Seneca

33. OhioHealth Buying Model • Basic Contracting types • GPO • Custom GPO Agreements • GPO Enhancements • Local • Logistics • Distribution • Direct • Purchased Services • Various contracting strategies • Various delivery strategies aligned with infrastructure

34. Vendor Credentialing • Central Ohio Hospital Council for Community Standards • Potential Vendor Registration: Medzo • Credentialing completed • Accessed by hospitals throughout the country • Used by OhioHealth for sourcing • Current Vendor Registration: VendorMate • Required for access • Fee based on access/risk • Policy agreement, vaccination documentation • Credentialing completed

35. Supplier Diversity Integration • Measure • Measure both first and second tier spend • Number of participating suppliers • Overall inclusive bid events • Train • Organizational engagement • Outreach • South Central Ohio Minority Supplier Development Council (SCOMSDC) • VHA Supplier Diversity Advisory Group (SDAG) • National Minority Supplier Diversity Council (NMSDC) • WBENC (Women’s Business Enterprise National Council)

36. Supplier Diversity: Measures • Year-over-year increases in diversity spend • Pipeline Plan • $25M by FY16 • Purchase service and drug & supply spend measured separately from construction tower build • First and second tier both measured but target spend is combined (given nature of distribution model, all tiers considered equal) • Number of diverse suppliers measured, but not targeted for growth (targeting deep, collaborative relationships, not more relationships) • Bid inclusion targets restricted to purchase service area

37. Supplier Diversity: Outreach • Ohio Minority Supplier Development Council • Board representation • Ohio Business Opportunity Fair • Matchmaker • Educational opportunities • VHA Supplier Diversity Advisory Group • Matchmaker events • Vendor fairs • Central Ohio Hospital Council

38. Next Steps • Get registered! • login.medzo.com • Novation/VHA Supplier Diversity • Register online at www.novationco.com/supplierdiversity • supplierdiversity@novationco.com • Cardinal Health Supplier Diversity • Register online at www.cardinalhealth.com/supplierdiversity • supplierdiversity@cardinalhealth.com • OhioHealth Supplier Diversity • Jamie Yolles, Director, Strategic Sourcing • Jamie.Yolles@ohiohealth.com

39. Osuwexner medical center

40. MBE/EDGE Background • MBE (Minority Business Enterprise): • Business Owners(s) must be members of one or more groups: African American, Native American, Hispanic, or Asian/Pacific Islander • Business must be at least 51 percent owned and controlled by persons from the above groups • Owner(s) of the business must be Ohio resident(s) • Business must be a for-profit operation and must have been founded at least one year prior to applying to the MBE program • EDGE (Encouraging Diversity, Growth, and Equity): • Assistance program for economically and socially disadvantaged business enterprises • Socially disadvantaged individuals have at least one objective distinguishing feature that has inhibited business success: Race, Ethnic Origin, Gender, or Physical/Mental Disability • Personal net worth of owners(s) : <$250,000 at program entry ; <$750,000 during program participation • Owner(s) of the business must be Ohio resident(s)

41. MBE/EDGE Goals • MBE -- Ohio Revised Code (ORC 125.081): • The State of Ohio Department of Administrative Services is required by law to make purchases with minority business enterprises that equals approximately fifteen percent (15%) of total value of all purchases in the current fiscal year. • EDGE – Ohio Revised Code (ORC 123.152): • The State of Ohio Department of Administrative Services shall establish agency procurement goals for contracting with EDGE business enterprises. EDGE participation goals will be based on contractor availability and will be set initially at approximately five percent (5%) of eligible annual direct expenditures. • Provision of this code allows universities to establish procurement goals for contracting with EDGE business enterprises. • Ohio State University – MBE/EDGE Goal: • The university has a goal consistent with the state's requirement to purchase fifteen percent of its goods and services from certified minority vendors (MBEs) and five percent (5%) from certified EDGE suppliers.

42. Next Steps – How to Engage • Get Registered • http://discovery.ariba.com/supplier • Select “Register Now” • Complete Company Profile • Supplier Diversity Contact • David Andres, Contract Manager • David.andres@osumc.edu

43. Question & answers • What more can we share so that you are successful in working with the Franklin County hospital systems?