Healthcare contracting is a highly complex, multi-step process and cutting costs in contracting is directly attributed to pricing alignment. The lack of pricing synchronization across supply chain constituents creates pricing errors that result in significant rework between providers and suppliers. In addition, suppliers and distributors require numerous back office personnel to support the highly complex rebate and chargeback process necessary to support group purchasing contracts.
Vendor representative credentialing has grown significantly in priority - and changed in scope over the last several years with increased regulatory requirements. As the importance for a process became more and more apparent, many healthcare supplier organizations developed programs based on the immediate need or circumstance, with some evolving over time.
Healthcare suppliers and providers that have collaborated on supply chain improvement initiatives have reaped the rewards of greater efficiency and lower costs – but it requires a level of trust nonexistent in many trading partner relationships.
“In the traditional buy/sell relationship, each party is trying to outwit the other,” said Gene Kirtser, President and CEO of Resource Optimization & Innovation (ROi), Mercy Health’s supply chain division. “But we are at a point in our industry where that is simply not sustainable. Providers and suppliers must learn to work together to find ways to reduce costs. That’s the only way we will all survive.”
The long term benefits of UDI implementation will be felt as adoption and integration into health care delivery increases. The FDA’s goals for UDI include improved patient safety, modernization of medical device post-market surveillance and the facilitation of medical device innovation.
Maintaining accreditation and compliance with HIPAA regulations is an on-going process for healthcare systems. In this post, Cheryl Watkins-Knowles, director of Purchasing for Palmetto Health, describes how their organization is using GHX Vendormate Credentialing and access management solutions to address their goals for accreditation, patient and staff safety, and mitigate financial risk.