The Importance of a Clinically-integrated Supply Chain

Three ways perioperative leaders can champion purchasing decisions that balance quality and costs

September 17, 2024
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By Meggan McCarthy, Sr. Director, Kitting & Surgical Services, Owens & Minor

The pendulum of perioperative supply purchasing decisions has swung broadly over the past decade in response to economic factors, reimbursement changes, and the pandemic. At one end are purchases driven by physician preference for items perceived as high quality, and at the other, those where cost is weighed heavily in the equation.

Striking a balance between the two extremes is the clinically- integrated supply chain, where perioperative and supply chain leaders bring their unique knowledge to the table to collaboratively achieve value in purchasing (high quality, low cost).

Determining how perioperative leaders can continue to play a primary role in purchasing decisions as the supply chain continues to evolve was the focus of a recent Leader Exchange webinar presented by the Association of periOperative Registered Nurses (AORN) Center for Perioperative Leadership and sponsored by Owens & Minor.

AORN Center for Perioperative Leadership Senior Manager Jake Runion MBA, BSN, RN, moderated a diverse panel of high-level decision makers as they discussed this evolution through their experiences.

Here are my three key takeaways from the webinar:

By re-engaging in supply decisions, actively participating in contracting processes, and leveraging credible data, perioperative leaders can champion purchasing decisions that balance quality and cost effectiveness.

  1. Perioperative and supply chain leaders must re-engage

    While the definition of a clinically integrated supply chain was established and some U.S. healthcare organizations had taken the lead in spearheading this collaborative model prior to COVID-19 hitting our shores, the pandemic forced many to a hard stop. “During the pandemic, we were all working on this urgency,” said one panelist. “Our supply chain colleagues were making rapid decisions to get us what they thought was the best product.”

    While “giving kudos” to the supply chain because “it was very difficult getting some of those items at the time,” the panelist stressed the need for clinicians to re-engage in supply decisions moving forward.

    “Perioperative leaders know their practices, so they should be speaking up, speaking on behalf of their physicians and their teams, and bringing ideas,” the panelist stated. “Even if you start with little things such as, ‘I’ve identified this waste [because] I checked the preference card,’ you’re going to get people’s attention. And you’re building your reputation as someone who cares about the cost per case and the supplies we’re working with.”

  2. Clinical integration starts at the point of contracting

    While supply chain is responsible for negotiating and managing group purchasing organization contracts, another panelist believes perioperative leaders should be involved in contracting from the start.

    “The first step in clinical integration is getting everybody agreeing to what’s in the contract and then from there, making decisions at value analysis about which products within that contract portfolio are going to provide us the best value in clinical outcomes,” the panelist stated. “Value analysis is critical, and it requires clinical input.”

    According to a fellow panelist, one area of clinical input that is extremely valuable during the request for proposal process is product attribution. The panelist stated:

    “We need the subject matter expert, whether a nurse or physician, to help us in the early stages of a contracting opportunity to understand what those important attributes are and make that part of the RFP process. [With this information], we can cross-reference existing products to potential conversion products and see what that comparison looks like. If the composition is the same and the sizing is the same, you have a pretty good chance it will function the same.”

  3. Credible, complete, and actionable data is at the heart of clinical integration

    Virtually every aspect of the clinically integrated supply chain is data driven. Whether it is supply chain demonstrating to perioperative leaders the impact of product preferences on case costs or perioperative leaders presenting to value analysis committee members peer-reviewed outcomes data to champion the adoption of an off-contract device, data is at the heart of most decisions made about the supply chain.

    “Always a gap in healthcare, at least in my experience, is data cultivation and how we leverage clean data sets,” said panelist Meggan McCarthy PA, BSN, Senior Director, Kitting & Surgical Services, Owens & Minor. “Alignment and data transparency are really what’s going to help streamline decision-making processes.” Her message to perioperative and supply chain teams: “Leverage your supplier partners to help be a piece of that puzzle.”

    “Having the data is critical for me,” another panelist added. “A lot of the data is driven by preference cards that the OR nurses are documenting – making sure preference cards are accurate with what they’re charging, and those team leaders making sure they’re staying on top of it. I’m not saying it’s an easy task, but that’s where our data is driven from.”

Integrated Supply Chain

“We need the subject matter expert, whether a nurse or physician,
to help us in the early stages of a contracting opportunity to understand what those
important attributes are and make that part of the RFP process.”

Conclusion
By engaging in supply decisions, actively participating in contracting processes, and leveraging credible data, perioperative leaders can champion purchasing decisions that balance quality and cost effectiveness. As healthcare organizations navigate post-pandemic challenges, integrating clinical expertise with supply chain strategies will be essential in achieving optimal outcomes and sustaining value-driven care.