Everyone Wins with the Right Strategic Relationship

There are organizations—healthcare ones among them—that are oriented towards insourcing functions, even when those functions lie outside of the organization’s core competency. There was a time (and still may be times) when full insourcing of the supply chain made sense: think Ford Motor Company in its early days. However, it is becoming more difficult to make a case for insourcing non–core functions, especially in healthcare, when better efficiency, more flexibility, higher profit margins and improved patient care can be achieved through strategic relationships.

That being said, you don’t want a strategic relationship with just anyone. Strategic relationships that align the capabilities and interests of two different entities can enable both organizations to deliver better service and better products. In today’s complex and dynamic healthcare marketplace, agility, efficiency and quality are the new drivers of success, and leveraging strategic relationships can turbo-charge performance.

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Driving Transportation Logistics to the Next Level to Create Systemness

Recently, our work with client Inova Health System, was the focus of a feature article in Greenhealth Magazine, the publication of Practice Greenhealth.

Inova Health System, based in northern Virginia, is a complex network of hospitals, outpatient facilities, physician practices, and health and wellness initiatives that serves more than 2 million people a year. The breadth of services provided makes for an equally complex method of getting physical materials—blood samples, lab results, medical equipment, pharmaceuticals, supplies and more—from one location to another.

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Lessons from Outside Healthcare: Turning your supply chain into a strategic asset

In this age of technology and disruption, we often look outside of our own industry for new ideas to make things better and more efficient. And, “while hospitals are not factories and patients are not cars, health systems can learn valuable logistics lessons from the automotive and retail industries,” noted a recent article in Becker’s Hospital Review.

Outlined in the article are seven supply chain lessons gleaned from industries such as automotive, electronic and industrial production:

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Healthcare Logistics and Transportation: Industry growth that delivers value

Since MedSpeed’s inception, we’ve believed in the important role healthcare logistics and transportation can play in the healthcare industry. A recent global report about the growth of the healthcare transportation services market studies that question.

According to the 151-page report for an analysis conducted by IndustryARC, healthcare transportation/logistics is a burgeoning business with significant projected growth. IndustryARC estimates that the global healthcare transportation services market will reach $93.2 billion in 2021. That reflects a compounded annual growth rate (CAGR) of 4.17% from $73.48 billion in 2015.

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MedSpeed’s CEO Wins Loyola University Chicago Supply & Value Chain Center’s Supply Chain Innovation Award

By Bonni Kaplan DeWoskin, Vice President of Marketing

 

We talk a lot about innovation in this space, so I’m excited to announce that our CEO, Jake Crampton has been selected as the winner of the Loyola University Chicago Supply & Value Chain Center’s Supply Chain Innovation Award. Jake accepted the award the award at Loyola’s 5th Annual Supply Chain and Sustainability Summit.

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First Things First: True health system integration requires big picture focus

One option to getting things done quickly is to just dive in. And in some cases, that is the best option. However, in a recent H&HN post, author Jeff Jones, urges healthcare organizations attempting to eliminate redundancies and create true integration to resist that instinct. Healthcare leaders who think that integration “is simply a series of operational assignments and a redrawing of the org chart” couldn’t be more wrong.

Jones argues that the process should focus on the purpose of integration and what is going to be measured.

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There Is No “I” in Team: The Value of We

As they say, “There is no ‘I’ in team.”

A recent post in H&HN entitled “Creating a Culture of ‘We’ Leads to Health Care Value,” addressed this very point. The author, Jack McNamara, points out that in healthcare today, there is an overarching strategic imperative to develop and embed a culture of value throughout the enterprise. And who does that include?

It should include everyone. The concept of the “mutuality of interests,” developed nearly 100 years ago by sociologist and theorist Mary Parker Follett, states that this mutuality is built not on the Golden Rule, but on the principal that when those working together share the same interests, the quality of work improves, and there is less waste.

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Productivity + Risk Management = Success

“Many of the major shifts (in healthcare) over the past decade can be characterized as focusing on bulking up pieces of the healthcare puzzle and on squeezing out inefficiency, but in the coming decade we can expect the shifts to be more systemic—rearranging pieces, adding new players, and changing the very definitions of efficiency and quality,” writes Ron Adner, Ph.D., Professor of Strategy at Dartmouth College.

Efficiency, productivity and quality define success not just in healthcare, but across industries.

In fact, a recent working paper from the Congressional Budget Office found that the magnitude of the financial impact U.S. hospitals will face in the future depends on how much they can improve their productivity over time. The CBO paper concluded that if hospitals are unable to increase their productivity or otherwise reduce cost growth, the share of hospitals with negative profit margins will rise to 60% and their average profit margin will fall to -0.2%.

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Hospitals Up the Ante with Hospitality-Style Customer Service

Customer service—long a leading indicator of success in the hospitality industry—is becoming increasingly important in healthcare, and with good reason. Competition for patient loyalty is serious business.

Increased referrals to family and friends can lead to more utilization of hospital services, and inherent in those word of mouth referrals are brand and reputation building opportunities for hospitals and health systems.

In fact, a Deloitte report found that hospitals with “excellent” ratings on CMS’ Hospital Consumer Assessment of Healthcare Providers and Systems patient satisfaction survey had a net profit margin of 4.7%, on average, compared with just 1.8% for hospitals with “low” ratings during the period from 2008-2014. Those “likes” can really add up.

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MedSpeed on the Inc. 5000

We just learned that MedSpeed made Inc. Magazine’s 2016 list of America’s 5,000 fastest-growing private companies, the qualification for which is based on revenue growth percentage over a three-year period.

In part, this has a lot to do with timing. Healthcare is moving from acute-care focused to non-acute care focused. Health systems are getting bigger with more points of care along the entirety of the care continuum. These larger systems are working very hard to capture the benefits of scale through greater systemness. This all points to an expanded need for – and available value creation from – intra-company logistics, the category that MedSpeed – and all of our team members – has made its life’s work.

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