Advanced Planning Brief to Industry (APBI) Philip Matkovsky Veterans Health Administration November 6, 2013

2 Agenda – Background/Bio – Major Program(s) Summary – Upcoming Acquisition/Opportunities – Questions

3 Background/Bio – Philip Matkovsky – Assistant Deputy Under Secretary for Health for Administrative Operations – Veterans Health Administration (VHA) – Provide overall policy, management, guidance and direct operations for VHA’s non-clinical operations, incl: Procurement, Logistics Revenue, Non-VA Medical Care, CHAMPVA, Enrollment, Contact Management Non-capital Construction, leasing, Health Care engineering, Biomedical Equipment

4 Major Program(s) Summary Describe Program(s): – Health Care supply chain optimization – Results in reduced price and quality variability across a gamut of product domains, incl: Medical, Surgical, Biomedical Equipment, Prosthetics, Facilities, Textiles, Ancillaries (e.g. Lab) and related product lines – Currently: Evolving Established the Program Executive Office (PEO) that is systemically completing requirements packages across the identified domains – Future trends Aggressive and complete contracting establishing system of national contracts for all major categories of Hospital supply

5 Major Program(s) Summary Overview of Supply Chain Process Graphic depicts the overall supply chain process. At each stage in the supply chain process opportunities exist for discovering efficiencies.

6 Major Program(s) Summary Current Activities: – Analyze Current Spend Patterns: Analysis of Supply Spend to identify target commodities for potential inclusion into strategic and national contracting. – Regional and National Contracts: Establish increasing scope contracts to reduce need to perform spot procurements. – Performance Measurement: Target inventory stock on hand and local procurement requests. Improve efficiency of primary inventory. Establish visibility into secondary inventory. – Harmonize Inventory Management: Adopt strong practices for inventory management and distribute. – Management Reviews: Implementing activities associated with GAO recommendation regarding Reusable Medical Equipment when Logistics controls inventory processes for Med/Surg items. – Automate Inventory Management: Introduce mechanization/automation of secondary inventory. Future Improvements: – Continue: Performance Measurement, Nomenclature Standardization, Inventory Management, Management Reviews. – Policy: Adjust inventory policies to enable VHA to more efficiently employ supply chain improvement. – National and Strategic Source Contracts: VHA and OALC/SAC Partnership to award first slates of strategic sourcing opportunities. – Monitor Sourcing: Establish performance monitors for strategically sourced items to ensure broad system adoption. – Full Automation: Standardized inventory terminology across system. Improve management systems to allow dynamic item management. Achieve full integration between Inventory System | Point of Use System | Real Time Location System.

7 Upcoming Acquisition/Opportunities Opportunities: – Build long-standing, clinical, program, and procurement IPTs over lifecycle of product lines – Assess Veteran and employee satisfaction with sourced items – Analyze what we use across a broad system for specific needs: We may not strive to source “one-size-fits-all”; But…we do want clinically and technically astute acquisitions that minimize unnecessary variation – Leverage our contracting activity to accelerate sourcing at time of use Approach contracts as systems, once awarded assess deployment, communications, and training Monitor adherence

8 Upcoming Acquisition/Opportunities Future trends: – Patient Centered Care must affect what we buy Textiles, gowns, diapers, furniture, interior design – Clinical Quality Indicators Pressure Ulcers; Efficacy; Reliability – Patient and Employee Safety Ensuring cross-cutting requirements for patient and employee safety built into our acquisition philosophy – Value Price competition and value to Veterans and Government – Ongoing VHA and OAL are committed to an ongoing program that is feeding a continuous cycle of acquisitions

9 Upcoming Acquisition/Opportunities Changes/Shifts? – Establishment of a standing Directorate in VHA focused on clinical logistics and development of acquisition packages – Increasing need to reduce inefficiencies in the overall value chain of delivery health care to Veterans and their families – Imperative to extract maximum value of our Capital Assets, supplies and materials Political climate impact? – Increasing scrutiny over what we buy, when we buy it, how much we pay for it, and what value it returns for Veterans and their families

10 Questions ?