A Formula for Success Standards and Communication Product

A Formula for Success Standards and Communication Product formularies help drive savings and create standards for multiple items in a large integrated delivery network.

Cheri Berri-Lesh, CMRP Value Analysis Manager

A picture is worth a thousand words

Knee Brace in MMIS (Lawson)

Knee Brace in Visual Formulary

Insurer and Delivery System Operating Revenue $3 B Integrated Delivery Network Member Governed 600, 000 Members 25 Medical Centers 9, 750 Staff 1, 055 Providers

Reasons to Consolidate & Standardize To achieve best contract pricing Reduction in variation No durable medical equipment license Some Healthcare Common Procedure Coding System (HCPCS) codes eliminated Create standard process Changing the culture of “if I want it, I get it” to one of collaboration and standardization

How it Began!

Gemba Process Walk

Road to Reducing Variation

Representation of Initial Choices

Physician Attendance Varied

Partner Collaboration Orthopedic Vendor Representatives Key objectives included standardization & cost savings Partnered with Materials Management to captured all product categories and annual usage An opportunity to identify products improvement or elimination Identified products for item and cost savings reduction

Orthopedics Soft Goods - Before 2008 $521, 000 720 Items

Orthopedics Soft Goods - After 2008 $521, 000 720 Items 2011 $419, 000 250 Items REDUCTION Spend = 19. 5% SKU = 65% Manufacturers From 84 to 29

Sample of Ortho Soft Goods Visual Formulary

Expanding Use of Visual Formularies More commodities added ◦ Wound Care: Advanced & Acute ◦ Cast, Padding & Splinting ◦ Medical Tapes ◦ Disposable vaginal speculum systems ◦ Infection Prevention

Product Standards & Formularies

Advance Wound Care - Before

Advance Wound Care - After

Cast, Padding and Splinting

Tapes

Disposable Vaginal Specula

Infection Prevention: Hand Products

Infection Prevention: Hand Products

Infection Prevention: Face Protection

Infection Prevention: Face Protection

Infection Prevention: Nonsterile Gloves

Partnering with Experts for Visual Formularies Orthopedic physicians, physician assistants & technologists Wound Care RN & University of WA Professor Infection Prevention Team Perioperative Services Safety and Environmental Health Officer Materials Management Specialists

The Benefits to a Visual Formulary Standard Work Clear Communication Reduction in Spend Provides Shopping list Visual Formulary Benefits Increases Contract Compliance Patient & Staff Safety Rapid ID of Errors or Defects

Summary Challenges addressed Consolidating needs of multiple physicians Working with preferences versus needs Seeking agreement Large geographic area Finding quality pictures Formatting for ease of viewing

Summary Steps/process created Order history review Collecting multiple product samples Product demonstrations road shows MMIS cleanup including description improvements Formatting images Entering into Excel Engaging with staff & active listening

Summary Key players involved Materials Management Participating departments Vendors Distributors Physicians & nurses Infection Prevention

Summary Outcomes achieved Established supply formularies Visual communication tool used as shopping list Defines best practices Managed by Value Analysis Program Reduced costs & SKU’s Promoted Lean visual systems in other areas

Summary Pre-requisites Product familiarity Engaged vendors and distributor Engaged Materials Management staff Support of Purchasing & Contracting Staff

Questions?

Contact information Cheri Berri-Lesh berrilesh. c@ghc. org