Promoting Quality Healthcare Through Supply Chain Best Practices
“Promoting safe and quality healthcare through the implementation of optimal supply chain management practices and systems” is the vision of the newly created Canadian Healthcare Supply Chain Network (CHSCN). The group’s mission is “to establish and promote Canadian healthcare supply chain standards and best practices, and to provide executional support for all healthcare stakeholders,” resulting in improved effectiveness and efficiency, improved patient outcomes and greater alignment between supply chain partners.
CHSCN has its roots in the Efficient Healthcare Consumer Response (EHCR) initiative. Based on the United States’ model, EHCR was established in Canada in 1998 by a group of hospitals, distributors and manufacturers to realize supply chain cost savings through the adoption of standards, such as EDI and barcoding, and other strategies such as Activity Based Costing. EHCR educated the industry through regional seminars, healthcare conferences and articles. A pilot project was initiated with the Ottawa Hospital, key suppliers and distributors. Yet, despite the zeal of its members, EHCR did not achieve the level of implementation that would have made this a great success story.
Also, CHSCN was established as a result of the November 2001 “Task Force Report on Supply Chain Management: Improving Supply Chain Management for Better Healthcare,” co-sponsored by EHCR and the Ontario Hospital Association. This report demonstrated how a more efficient healthcare supply chain could save more than $350 million across Canada, and how the use of best practices and technology (such as bar coding) could significantly reduce medical errors.
Unlike the private sector, healthcare has been slow to recognize the value of the supply chain in reducing cost and improving efficiency. As the report indicated, while industry used process improvement and technology to generate billions of dollars in supply chain cost savings, this type of systemic change has been late in coming to hospitals. Inconsistent levels of efficiency, technology and resources have made it difficult for them to adopt traditional optimization strategies, and this has been compounded by the necessity for hospitals to accommodate physician preferences in decision making processes.
The Task Force Report identified four critical success factors which must be in place to achieve supply chain optimization in healthcare: 1) buy-in of senior management, 2) common goals and standards among hospitals, 3) training and 4) government support in setting standards and in funding initiatives. No small task!
A broad-based group of healthcare and industry supply chain professionals (all on a volunteer basis) picked up the challenge, and formed the Canadian Healthcare Supply Chain Network as a vehicle to deliver on the recommendations outlined in the report. The membership of the Steering Committee is another critical success factor, because the intention is for CHSCN to represent all potential stakeholders of the healthcare supply chain. CHSCN is co-chaired by members representing both hospitals (Sarah Friesen, Director of Supply Chain Services at Sunnybrook & Women’s in Toronto) and suppliers (Peter Goodhand, President, Medical Devices Canada). Members include: Richard Giesbrecht from Shared Healthcare Supply Services in Toronto, Mike Fry, Director of Materials Management at the Ottawa Hospital, Mike Rosser, General Manager, Healthcare Materials Management Services in London, Gary Mandziuk, Regional Manager, 3M Canada Company, Klaas DeWitte, Director, Inventory Management and Business Processes, Johnson & Johnson Medical Products, Irene Podolak, Partner with Deloitte & Touche, Rob Fletcher, Vice President Health Development, BCE Emergis, Norman Sung, Director Business Development, Global Healthcare Exchange, Doug McVeigh, President, Medbuy Corporation, Terry Rooney, President Canadian Pharmaceutical Distribution Network and Nigel Wood, Director, Industry Relations with the Electronic Commerce Council of Canada. This will be rounded out with participation from companies representing blood and food.
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Through intense strategic planning exercises, the Steering Committee identified 10 key priorities that support the vision and mission. Ranked according to impact and feasibility, they include:
1) establish a repository of best practices
2) develop a network of experts
3) affiliate with professional associations
4) develop and deliver education through programs
and seminars
5) develop a gap-analysis tool
6) facilitate executive sponsorship
7) develop a skills inventory of core competencies for
supply chain professionals
8) develop a certification program
9) establish regional industry buying entities, and/or increase affiliation with Group Purchasing Organizations
10) identify and implement universal standards, e.g. bar codes
The list of next steps is long and varied. The Steering Committee plans to launch CHSCN in November and will be targeting all stakeholders in the healthcare supply chain as potential members. In the meantime, work continues on developing the profiles for each of the projects listed above, so that by the time of the launch, there are tangible benefits to offer the new members, and the real work can begin.
The steering committee of the Canadian Healthcare Supply Chain Network recognizes the huge challenge ahead, but is strongly motivated by the impact the supply chain can have on reducing medical error and driving costs out of the system. If you’re interested in obtaining more information, please call Sarah Friesen at 416-480-6100 x 3342, or Peter Goodhand at 416-620-1915 x 226.