David Chaudier
Vice president strategic sourcing, Aurora Health Care Inc., Milwaukee, Wisc.
Fully integrated healthcare provider with 15 hospitals; over 185 clinics and 70 pharmacies, rehabilitation centers and home healthcare. Over 1.2 million patients annually; 3,153 licensed beds.
David Chaudier joined Aurora Health Care in 1999 and has since held positions in operations improvement, finance, cardiac and surgical service lines, and has served as vice president of operations for Aurora Health Care’s quaternary care hospital, Aurora St. Luke’s Medical Center. Currently, he oversees all strategic sourcing and negotiations for supplies, capital and purchased services; contracting; and supply chain data and technology (reporting and systems).
The Journal of Healthcare Contracting: What has been the most challenging and rewarding project you have been involved in recently?
David Chaudier: When I assumed my current role in 2012, the first order of business was to assess and implement a new strategy and structure for the entire department. To increase department moral, we focused on three points:
- People. We engaged everyone and bought into a new vision of how to do things and teamwork.
- Purpose. We created an environment where people can feel good about what they do, and how and why they do it. We rewarded success.
- Passion. We focused on lifting up everyone in the department, from the most senior caregiver to newly hired individuals. We began with motivation and the belief that we can – and must – be better.
This was the building block for all future changes, which have enabled supply chain and the sourcing team to exceed their savings goals.
JHC: Please describe a project you look forward to implementing in the next year or two.
Chaudier: We look forward to continuing to improve the quality and quantity of work in our department. We will accomplish this through changed responsibilities, by defining processes and by creating teams capable of exceeding expectations. In addition, we look forward to integrating the supply process within the building of the system service line departments, including:
- Partnering with physicians and key leaders in areas such as cardiac, ortho, neuro, women’s health and cancer.
- Developing physician panels with a strong supply understanding and a willingness to champion change.
- Integrating strategic account managers from supply groups to work with physician leaders and vendors.
JHC: What is the most important quality you look for in a supplier partner?
Chaudier: We look for a vendor willing to partner for the long-term; be proactive in the relationship; and one that understands our situation, as well as big-picture healthcare and its future.
JHC: What is the greatest change we can expect to see in healthcare contracting in the next five years?
Chaudier: We will need to partner with vendors to reduce costs, including finding a balance to offer the highest quality products at the best value, while maintaining choices for physicians. In addition, we will have to partner with physician leaders to maintain a competitive advantage. Sourcing and contracting will have to transform itself with data and technology by analyzing reimbursements, standardization, utilization and quality indicators. The challenge will be to find the best strategy for each product while continuing to provide the best care at the best value and highest quality.