Cen­tral Health to op­er­ate new shared ser­vices model for health sup­ply chain man­age­ment

Lower costs for the prov­ince’s health sys­tem says Min­is­ter

Advertiser (Grand Falls) - - Front Page -

Cen­tral Health will lead and man­age a prov­ince-wide ser­vice for sup­ply chain.

The pro­vin­cial govern­ment an­nounced Thurs­day morn­ing it will im­ple­ment a prov­ince-wide shared ser­vices model for sup­ply chain man­age­ment in the health care sys­tem.

Sup­ply chain man­age­ment is the sourc­ing and pro­cure­ment of goods and ser­vices, such as med­i­cal or of­fice sup­plies. Each of the four re­gional health au­thor­i­ties (RHAs) and the New­found­land and Labrador Cen­tre for Health In­for­ma­tion (NLCHI) cur­rently man­age the sourc­ing and pro­cure­ment of their own sup­plies through sep­a­rate sup­ply chain di­vi­sions.

Each RHA and the NLCHI has dif­fer­ent pro­cesses and sys­tems in place, re­sult­ing in the un­nec­es­sary du­pli­ca­tion of re­sources and ad­di­tional costs to the health care sys­tem. Im­ple­men­ta­tion of the new sys­tem will be led by John Kat­ten­busch, Cen­tral Health’s vice-pres­i­dent of Fi­nance and In­fra­struc­ture, a press re­lease from the prov­ince noted.

“As health or­ga­ni­za­tions, we con­tinue to work to­gether to find ef­fi­cien­cies and im­prove­ments in or­der to have a sus­tain­able health sys­tem,” Kat­ten­busch stated. “With sup­ply chain em­ploy­ees in all ar­eas of the prov­ince, we will re­al­ize our vi­sion of an in­te­grated sup­ply chain model that en­sures the right prod­ucts and ser­vices are avail­able at the right place and the right time at the best price to sup­port safe, ef­fi­cient and ef­fec­tive health care.

“A shared ser­vices model for sup­ply chain makes good busi­ness sense, and will sup­port the de­liv­ery of qual­ity health care ser­vices in our prov­ince.”

A gover­nance com­mit­tee has been cre­ated with com­mit­tee mem­bers in­clud­ing the five chief ex­ec­u­tive of­fi­cers from the RHAs and NLCHI and a se­nior of­fi­cial from the De­part­ment of Health and Com­mu­nity Ser­vices. The com­mit­tee is re­spon­si­ble for over­see­ing im­ple­men­ta­tion and per­for­mance mon­i­tor­ing of the new ser­vice model.

A sin­gle RHA de­liv­er­ing sup­ply chain ser­vices will lever­age ex­ist­ing ca­pa­bil­ity, ex­pe­ri­ence and ca­pac­ity within the RHAs and NLCHI, the re­lease stated. Em­ploy­ees through­out the prov­ince will con­tinue to work where they work now and man­age­ment em­ploy­ees will be­gin to re­port into Cen­tral Health in the near fu­ture. Im­ple­men­ta­tion is ex­pected to take ap­prox­i­mately five years. This model also po­si­tions New­found­land and Labrador for fur­ther part­ner­ing with other prov­inces and ter­ri­to­ries on joint pro­cure­ment ini­tia­tives like bulk pur­chas­ing.

The Way For­ward: A vi­sion for sus­tain­abil­ity and growth in New­found­land and Labrador made the pur­suit of greater pub­lic sec­tor ef­fi­ciency and bet­ter ser­vice de­liv­ery a fore­most pri­or­ity for the pro­vin­cial govern­ment, the re­lease added.

A shared ser­vices model for sup­ply chain in the health care sys­tem is ex­pected to re­sult in an­nual sav­ings of over $13 mil­lion, once fully im­ple­mented.

“Across the coun­try there is an in­creased fo­cus to drive greater im­prove­ments in health de­liv­ery and out­comes. With the high­est per capita spend­ing and some of the poor­est in­di­ca­tors, there is a com­pelling ar­gu­ment to change how we de­liver this ser­vice in the prov­ince, said Health Min­is­ter John Hag­gie. “Bet­ter man­age­ment of pro­cure­ment re­lated ac­tiv­i­ties will re­sult in ser­vice im­prove­ment and lower costs for the prov­ince’s health sys­tem.”

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