John Pritchard
As the summer winds down and we make way for cooler autumn days, so rolls the evolution of our supply chain. It was just a few short years ago our readers were preparing for the new normal brought on by the implementation of the ACA and all of its intended consequences such as a tireless drive to reduce supply costs, a changing care setting and the never-ending pursuit of a clinically integrated supply chain.
We also worked through many unintended consequences, such as systems and facility integration as a result of consolidation, convergence of stakeholders (as more systems own a payer), and adopting of alternative payment models. I don’t know of a Supply Chain Leader who reads The Journal of Healthcare Contracting that was fully prepared for these challenges through a college education or routine on-the-job training.
As if we haven’t been blessed with a career worth of challenges in the last 8 or 9 years, the next decade promises to be even more challenging. In no particular order below are some of the initiatives I see adding to the workload of our nation’s Supply Chain Leaders.
Risk-based contracting will need to be figured out by both provider and supplier. For years I have heard about how everybody is ready to engage in risk-based contracting to take partnerships to the next level. I have yet to see a demonstration with any meaningful results. Two things continue to stand in the way of progress in risk-based agreements — data and trust. With data, the negotiating parties constantly point to the lack of easily accessible and discernable data to determine the results of such an agreement. With trust, the reality is that one party is trying to spend less and the other is trying to sell more, and these divergent objectives rarely create a collaborative environment.
Another interesting challenge is the drive by providers to get closer to the patient. Whether it’s infusion centers in malls, Uber-like house call services by caregivers, or more complex cares settings in residential areas, it is obvious the care sprawl will creep fast toward patients’ regular routine of life. As IDN leaderships tout their commitment to population health and the ability to provide for a covered life’s continuum of care, Supply Chain’s roll will evolve from warehouses, store rooms and nursing carts to also provide wearables, in-home procedure trays and almost real-time supplies in a myriad of settings.
The last interesting challenge is generational communication. The ways that hospitals procure have changed drastically in the past decade, and so have the personal attributes of its buyers — and they want to be communicated to differently. Everything you see about Millennials, Gen Xers, Gen Y and Boomers screams that we need a plan on how we are going to communicate, incentivize and reward the various generations in our work force.
I’d welcome to hear what you see in your crystal ball for Supply Chain departments as the seasons change in the evolution of our healthcare environment.
Thanks for reading this issue of The Journal of Healthcare Contracting.
John Pritchard