Outsourcing supply chain lead aligns McLaren Health, Premier
Flint-based McLaren Health Care is one of Michigan’s largest healthcare systems, delivering a full continuum of services to mid-Michigan. It includes McLaren Regional Medical Center, Flint; Ingham Regional Medical Center and Ingham Regional Orthopedic Hospital, Lansing; Lapeer Regional Medical Center; Bay Regional Medical Center, Bay City; Bay Special Care; Visiting Nurse Services of Michigan; the McLaren Health Plan; and more than 100 physician practices and community medical center. www.mclaren.org
Situation:
McLaren Health realized that to get the most from its group purchasing organization relationship, it needed to align its and Premier’s incentives to serve the best interests of the integrated delivery system
Solution:
Philip Incarnati, CEO when the McLaren integrated delivery network was formed, was convinced that materials management was going to be a strategic area in the future – that it was more than employees in the basement processing POs, that it must be an integral, strategic partner because supply cost is the number two expense behind labor in a healthcare organization. A contracted Premier employee is the system’s vice president of corporate materials management with ultimate responsibility for purchasing, distribution and all related services and operations for the system.
Result:
Kevin Hines, the longest serving contracted Premier employee, has been head of corporate materials management at McLaren since 1996. His primary task is to drive cost out of the system through standardization and contract compliance and utilization – with Premier contracts or a McLaren contract if Premier doesn’t have one in a particular area.
He has access to all of what Premier offers and understands how Premier works. He knows where the expertise is and how to draw on it for cost savings. His Premier training in all aspects of supply chain management and easy access to Premier resources puts him at the cutting edge – more than the typical materials management employee. He hears what is going on at Premier, in Premier hospitals, and what Premier Consulting Solutions consultants are doing because he is part of that unit.
"We have the best of both worlds. Unlike me, who has just one person to
make happy, Kevin has two masters. For McLaren it’s a double set of checks and
balances. The big thing is having the full backing of an organization like
Premier that is focused on delivering the best pricing, the best products and
the best negotiations. Having Kevin as an official member of the McLaren team
speaks volumes because of the alignment of incentives with both organizations."
Dennis Krzeminsk, CFO
McLaren Health
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