Christopher Fontana
Director of strategic sourcing, Jefferson Health & Thomas Jefferson University (TJUH), Philadelphia, Pa.
Jefferson Health & TJUH consists of three hospitals, three urgent care centers, and over 100 practice sites. Total purchasing volume, including all supplies, services and capital equipment (excluding pharmacy) is approximately $420 million annually.
Christopher Fontana joined Jefferson in 2013 and is currently responsible for sourcing, contracting, purchasing and supplier relationship management; analyzing Jefferson’s portfolio of products and services; identifying opportunities to reduce costs and/or improve technology; and more.
The Journal of Healthcare Contracting: What has been the most challenging and rewarding project you have been involved in recently?
Christopher Fontana: We have partnered with clinicians, educating them about the realities and risks of managing supplies the old way. Jefferson has one of the largest, most successful orthopedic programs in the country, but our supply costs have been too high. We met with the departments and surgeon champions, developed a common understanding of products that are core to their success vs. those where there is parity, gained their support for a “shelf price” approach (meaning physicians could use products from any vendor that can meet our prescribed price points), and proceeded to engage the supplier community. We set aggressive targets based on our assessment of continued pricing trends in the marketplace, and in line with the prestige of Jefferson’s programs. For shoulder products, we successfully gained agreement with our largest supplier, but two of our other high-volume suppliers refused to meet our targets. This presented a real test to the solidarity of our sourcing/physician partnership. Working together, we agreed to stand firm and ultimately suspended the two vendors. For spine products, following several weeks of negotiations with vendors, we were still short of our savings target. Through much preparation, analysis, and discussion, we were able to gain our surgeons’ support and opt for a growth plan with one of our key vendors. This process has enabled us to strengthen our relationship with our surgeons, which will reduce costs.
JHC: Please describe a project you look forward to implementing in the next year or two.
Fontana: We will continue to assess our categories for alignment with the new healthcare model, and build trust and relationships with our clinicians so that they are participants in the journey for cost reduction and product improvement.
JHC: What is the most important quality you look for in a supplier partner?
Fontana: The opportunity for strategic partnerships exists when our interests are aligned, both financially and clinically. Our suppliers understand that we need to manage costs, but that we don’t want to compromise quality or innovation, and they work with us to identify scenarios that help us both grow.
JHC: What is the greatest change we can expect to see in healthcare contracting in the next five years?
Fontana: Supply chain can no longer be just about price containment, contracting and purchase order efficiency. Cost is only one variable, and supply chain and contracting groups must recognize that the products we help choose have far-reaching effects that can impact revenue, patient satisfaction and the long-term health of our hospitals. We must be purveyors of the best products, services and technology that help our health systems grow through margin enhancement, patient reach, and the advancement of care. And, we must be seen by clinicians as partners in this endeavor.