Retail mindset may yield best results
Does your healthcare system want to be a winner? Then develop a retail-inspired business model. That was the message from MedAssets Chairman, President and CEO John Bardis, addressing attendees at the recent MedAssets Healthcare Business Summit in Las Vegas.
“The radical change MedAssets has expected all along has come to healthcare in direct response to an unsustainable and siloed delivery system with a widely varying cost infrastructure,” said Bardis, addressing the audience of nearly 4,000 people. Against a backdrop of recession and reform, many pundits predict that a third of hospitals now in existence in the United States will not cross the 2020 finish line as winners, he said. Costs will continue to rise due to increasing compliance burdens under healthcare reform. Meanwhile, reimbursement levels will sharply decline as payers shift to value-based purchasing.
“Future reimbursement levels will not cover healthcare provider costs, and force the unprecedented challenge – and opportunity – to reinvent a more retailed-inspired business model through technology, entrepreneurial capitalism and consumer health engagement,” said Bardis. “Cultivating these work tools will be critical for health systems to capture additional reimbursements along the continuum of care – and ultimately survive.”
The event featured more than 70 educational and/or client case study sessions on such topics as ICD-10, accountable care, population health, bundled payments and clinical and business intelligence. In addition, attendees received hands-on demonstrations of existing and evolving MedAssets technology services. A supplier Exhibit Fair also was held. Keynote speaker presentations by Bardis and former Florida Governor Jeb Bush rounded out the program’s U.S. economy and healthcare market analysis content.
MedAssets offered tribute to both returning and fallen U.S. veterans. Attendees prepared more than 1,800 care packages for U.S. military serving in Iraq and Afghanistan. (Bardis is founder of Hire Heroes USA, a nonprofit organization dedicated to creating job opportunities for U.S. military veterans and their spouses through personalized employment training and corporate engagement.).
In addition, MedAssets honored two individuals for the 2011 Norman Borlaug Humanitarian Award and the 2011 George Herbert Walker Bush Pacesetter Award.
Recipient of the Humanitarian Award was Elissa Montanti, founder of the Global Medical Relief Fund, a nonprofit organization that aids children who are missing or have lost the use of limbs or eyes, or have been severely burned, or have been injured due to war, natural disaster or illness.
Recipient of the Pacesetter Award was Col. George Everette “Bud” Day, retired U.S. Air Force colonel and command pilot who served during World War II, as well as the Korean and Vietnam conflicts. He was a prison of war in North Vietnam for five years and seven months, and is the recipient of the Medal of Honor and Air Force Cross.
“Elissa and Bud have shown tremendous selflessness, bravery and dedication,” said Bardis. “Their efforts and leadership are inspiring, and it is our honor to recognize both of them.”
Supply chain awards
MedAssets recognized hundreds of care providers and supply chain stakeholders for their contributions toward delivery of high-quality, more affordable care. Collectively, the award winners demonstrated savings and/or financial improvement of more than $350 million in 2011, in addition to efforts to eliminate waste and improve operating margins.
Texas Purchasing Coalition was the recipient of the President’s Award Winner (provider category). The regional group, comprising 27 Texas-based facilities with a combined supply spend of $829 million, was recognized for achieving $65.4 million in savings during the first 24 months of its relationship with MedAssets. Using a combination of the GPO’s Spend and Clinical Resource Management products, members of the TPC were said to have generated the following savings: $3.9 million in pharmacy services; $20.2 million through distribution and clinical sourcing initiatives; $4.9 million from group purchasing services, and $40.3 million by converting usage and more standardization of physician preference items.
Meanwhile, Jack Hannemann, recently retired vice president of national accounts, Medline Industries, received the President’s Award Winner in the supplier category. He was cited for his role in developing national agreements with MedAssets that provided substantial value to healthcare providers.