Supply Chain Strategy Delivers Quality Supplies and Services Along With Cost Savings

WellStar’s Value Analysis Department uses a systematic, evidenced-based approach to facilitate the selection and purchase of safe, high-quality medical supplies and services that maintain or improve the quality of patient care at the best possible price.

In order to achieve this, several Value Analysis teams, which are part of WellStar’s Supply Chain Division, work closely with WellStar physicians and clinicians across all service lines to review both current and future medical supply needs.  Value Analysis uses information from several national quality and price benchmarking services to identify potential savings opportunities.

Having used this same Value Analysis team approach to realize $14.3 Million in supply cost savings since Value Analysis’s launch in late 2009, the Supply Chain Opportunities 2012 goal was set to achieve an overall $5 million savings, with $3 million in supply cost savings and $2 million in purchased service savings.

"Thanks to the success of several recent clinical value analysis initiatives, we have already far exceeded our Opportunities 2012 supply goal,” said Tony Trupiano, vice president, WellStar Supply Chain Division. “During the period of February through October 2011 alone, we have already achieved $5 million in supply cost savings and are just under our $2 million goal for purchase services.”

One recent clinical value analysis initiative involved collaboration with Barry Mangel, M.D., chief cardiology officer, WellStar Health System, and WellStar electrophysiologists to negotiate supply contracts for cardiac rhythm management devices, such as pacemakers and defibrillators. “Essentially, we were able to benchmark our pricing with other hospital systems throughout the country with the goal of obtaining the best quality and price, while still allowing choice for the physicians,” said Trupiano.

The physician-supply chain collaboration also involves reviewing advances in new medical supply technology.  Value Analysis teams keep abreast of vendor reviews and pricing strategies for new products. For example, the team collaborated with WellStar cardiologists to negotiate the purchase of the Revo MRI SureScan® Pacing System, a newly-developed MRI-safe pacemaker. Until the new pacemaker was developed, MRI procedures were not allowed for patients with implanted pacemakers, due to the potential for serious adverse events.

As a result of the collaboration, in February 2011, Narendra Kanuru, M.D. with WellStar Medical Group, Cardiovascular Medicine, became the first physician in Georgia, and one of the first in the United States, to implant the device during a procedure performed in WellStar Kennestone Hospital.

The Nursing Value Analysis team worked with WellStar’s Women & Newborns Network Service line, as well as WellStar’s Quality & Patient Safety Division, to assess the clinical effectiveness of the silver foley catheter.  After a review of clinical literature, the team found no conclusive research to specify the use of silver coated catheter to reduce catheter-associated urinary tract infections (CAUTIs) for maternity patients.  Thus, the team approved the conversion from silver foley catheters to non-silver foley catheters as a clinical effectiveness initiative and a savings opportunity. The project has already amounted in purchased savings of $40,000.

Value Analysis is also collaborating with WellStar’s Clinical Effectiveness Team (CET), another of the nine Opportunities 2012 teams. The CET reviews physician clinical practice patterns in order to better utilize hospital resources and provide our patients with the safest, highest quality care in the most cost-efficient manner.