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Value of Central Purchasing Ed Schryer, CPhT Pharmacy Buyer Intermountain Healthcare Background Intermountain Healthcare • Integrated Delivery Network • Located in Salt Lake City, Utah • 23 Hospitals • Over 200 Clinics • Home Health • Health Plan Supply Chain Organization • Formed in 2006 • Centralize Purchasing Functions “The Supply Chain Organization…ensures quality products and services are sourced, purchased, and delivered to Intermountain Healthcare’s hospitals, clinics and divisions, using principles of supply chain management. The Supply Chain Organization helps Intermountain get the best value for the dollars it spends and allows the company to devote more resources to patient care. The Supply Chain Organization assists in improving operational effectiveness and helping Intermountain as it aspires to provide extraordinary care in all its dimensions.” - Intermountain Healthcare Change of System Pharmacy Purchasing Previous State • Pharmacy Buyer @ Hospital • Sent requisitions to Materials Buyer for all non-routine purchased items • Blood products • Drop shipped items • Items out of stock at our DC that had to be transferred Current State • Inventory Specialist @ Hospital • Place all Pharmacy Orders • Central Pharmacy Buyer • Receives Orders for non-routine items and places those orders Value of Central Purchasing Pharmacy Purchasing Standardize Products Contract Compliance Manage Market Shortage Items Meet Separation of Duties Requirement Avoid “Hard-to-Find” Industry Provide Valuable Information to Corporate Pharmacy and P&T Committee to Facilitate Effective Decision Making Hospital Comments “The pharmacy buyer team at Intermountain Healthcare have provided a tremendous service to our 22 hospitals as well as our physician group. Their research and support of the local inventory specialist are invaluable in helping the organization obtain the medications that are necessary for our patients. They have an active role in our P and T process as well as helping us with adherence to contract purchasing and finding hard to purchase products. We are fortunate to have individuals that are very serious about their responsibilities and are a great asset to the company.” “I never have any problems at all. You always let me know if there is a shortage, or if our distributor has received short-supply items in their warehouse. I think you are awesome!” “I think you folks are fantastic. We make 1 easy call or 1 simple email and you guys seem to have the world at your fingertips because you take care of the order and we get the stuff we need. Thanks a bunch!!” Hospital Comments “The advent of the corporate buyer has been a very positive experience for us at our hospital. Being able to contact one individual to find all pharmaceuticals not available from our wholesaler has streamlined our process and help us reduce costs. Also, the information the corporate buyer conveys to us about shortages is very useful and helps us inform the staff and physicians about shortages before they become critical. The corporate buyer is now an indispensible part in our buying strategy.” “I would have to say I really like having a central buyer team. I like the fact that they interact directly with the manufacturers and can devote time to issues like the shortages and backorders. Purchasing can be so difficult that if I had to do all that they do on top of what I do at the facility level I would not be able to keep up with my daily responsibilities. The central buyer team also has a chance to work closely with each other and can help each others’ facilities with the purchasing challenges that we all face. The inventory specialists at each facility do not always have the time or opportunity to talk to each other so it is harder to help each other or know of each others’ needs. I think having a central team saves the corporation time and money for each facility.”