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Volume 14| February 21, 2018
Insights-Trends-Opinions
Welcome to National Accounts Weekly!

We cover everything you need to know about GPOs, IDNs and RPCs.

Enjoy back issues of National Accounts weekly by clicking here!

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Healthcare Industry 'ripe for disruption,' S&P Global warns
The linked story warns that McKesson, Cardinal and others are in grave danger of being on the outside looking in. We have heard this warning over and over again.

But the quote in the story that I can not get out of my head is: Group Purchasing Organizations such as Vizient also are vulnerable if Amazon undercuts their prices.

I don't think Vizient, or any other GPO or self-contracting IDN, is ever going to lose to Amazon or any other disruptor due to price. Not today, not tomorrow, not in 20 years.

They might lose even if they have better prices! They may lose because they are less convenient.

Convenience will start to be part of the value equation. Hospitals, clinicians and physician offices will pay a premium for it.

Convenience is the new attribute in the acquisition process that will increase value.

Supply Chain Leader Spotlight!

Teresa Dail, RN BSN, CMRP
Chief Supply Chain Officer
Vanderbilt University Medical Center
Teresa Dail oversees VUMC’s $1B+ supply chain, including sourcing, logistics, purchasing, systems and disbursements, whereby her daily challenge consists of optimizing best practices across the continuum. She is a mentor/national speaker on numerous healthcare topics and most recently was named as the AHRMM Board Chair-Elect for 2018.

She is passionate about improving supply chain operations and optimizing the use of data/clinical outcomes to help drive product standardization/utilization to reduce the total cost of care. She oversaw the creation of VUMC’s value analysis process, which is a model for the industry today. Her goal is for supply chain to become fully aligned clinically to ensure optimum quality of care at the most effective cost.

Partners HealthCare Releases Financial Results
Partners HealthCare, based in Boston, Ma. released First Quarter results ending December 31, 2017. Here are some of the results:

  • Revenue of $3.4b (up 6%)
  • $115m in operating income
  • Operating expense of $3.3b (up 2%)
  • Supplies and other expenses of $53m (up 8%)

Peter K. Markell, Chief Financial Officer and Treasurer for Partners HealthCare states:
“We experienced strong first quarter results, driven by volume growth, new efficiencies realized through our Partners 2.0 initiative, and greatly improved performance at Neighborhood Health Plan”

It is an interesting read to see how its provider performance and insurance income contributes to its results.

Donna Van Vlerah featured on ANAE Supply Chain Leaders Learning Series
Every month ANAE has a progressive and insightful Supply Chain Leader join us in a candid discussion about today's dynamic and competitive landscape.

Last week, Donna Van Vlerah, Senior VP, Support Division for Parkview Health was my guest. This is a must listen for suppliers that want insight to how best-in-class IDNs are moving into this era of value-based everything.

Upcoming guests include:
  • Ed Jones- HealthTrust
  • Laurel Junk- Kaiser Permenente
  • Vance Moore- ROi
  • Teresa Dail- Vanderbilt


Become a member of ANAE here and listen to these monthly webinars for free and recordings of all past webinars. You can also pay $9.95 to listen to Donna's webinar below.

January 2018 Month in Review
National Accounts Weekly started a YouTube channel. Each month we post a month in review video detailing the top few articles that pertain to National Accounts.

Let me know what you think about this format! What other videos would you like to see on the channel?

In this first episode we detail:
  • Amazon, Berkshire and JP Morgan announcement
  • Top 50 IDNs
  • Supply shortages due to record flu season
Premier's Blair Childs and the view from Washington
I always enjoy hearing from Blair on what is going on in Washington, D.C. Here he gives a great update on what Providers need to know about what is happening in Healthcare, and especially in D.C.

National Accounts Executives would be wise to listen to the part where he discusses High Value Networks (HVNs). I am starting to hear this term more and more, I think it is emerging as what we have been calling the IDN of the future.

He challenges systems: Are you going to organize? Or are you going to be organized?

He also answers "Where is value-based care going?" His answer is emphatic!

This quick, 3-minute video is well worth your time.

Feel free to share!
Thanks for reading this issue of National Accounts Weekly! Let me know what you think!

You are now in the know!

John Pritchard


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