Strategic imperatives for managing materiel into the next century

The next century of opportunity is less than a decade away. Materiel management must involve itself in the strategic changes occurring within the health care industry and its respective institutions. Those materiel managers who are aggressively ensuring that their operations are supported by a well-developed and well-orchestrated operational infrastructure are now well positioned to address the future challenges of this decade. Unfortunately, many other materiel managers are focusing their attention and efforts solely on the management of materiel for which they currently have control. Materiel managers must develop an acute awareness of the support needs of their respective organizations. Those who are not apprehensive about venturing from the traditional materiel management world will be exposed to incredible educational opportunities and will receive responsibilities of unparalleled organizational importance.     

CEO expectation: the Star Wars materiel manager of the 1990s, or C-3PO as role model

Materiel-intensive expenditures account for a significant portion of all hospital costs, second only to salaries and wages, yet materiel managers may often be overlooked as key members of the management team. This is alarming since the potential exists for materiel managers to impact annual savings of hundreds of thousands of dollars by operating efficient departments. Materiel managers have a tremendous opportunity to enhance their image and improve hospital productivity in the coming decade. The challenges of the 1990s will stretch materiel managers' skills toward enhancing their professionalism and achieving the expectations of themselves and top management. If materiel managers will effectively utilize (C3)PO they will increase their educational levels, continue to learn new skills, maintain a customer-oriented management style, exercise creativity, develop and adhere to standards, and be proactive in their responsibilities. The benefits of their success will be felt by patients, hospitals, the industry, and materiel managers everywhere.     

The materiel manager's role in executive management

The ability to achieve advancement for materiel management is a potential that few have challenged and achieved. Reasons for this lack of growth vary in degree, but the opportunities in the 1990s will be tremendous. The political skill and team leadership ability expressed by materiel managers throughout hospitals will ultimately result in whether this challenge is met or not. Materiel managers will need certainly to change their perception of their own role, as well as the perception of hospitals, in order to achieve this. The road will be challenging, but with the winning attitude, skill building, and proven management ability, I believe that materiel managers will become successful in hospital executive management in the 1990s.     

Materiel management and reimbursement in the American Association of Eye and Ear Hospitals

Simply stated, understanding how hospitals receive money enables materiel managers to save money. Reimbursement in the health care industry is a complex phenomenon, and the rules and regulations change annually, so that it is sometimes difficult to budget appropriately and estimate the hospital's bottom line accurately. The savvy materiel managers who can utilize the reimbursement concepts effectively will be highly regarded within their institutions.     

Empirical comparison of just-in-time and stockless materiel management systems in the health care industry

Despite the limitations, this study is the first comparative empirical investigation of two relatively new materiel management systems applied in hospitals. The results show that hospital managers have significantly rated the possibility that more effective use of some materiel management resources can be achieved by adopting either a JIT or stockless system over conventional materiel management systems.     

Survival depends on effective partnerships with suppliers, management, and physicians

Partnering in health care materiel management circles is a concept that has been discussed for years. We, as materiel managers, have never accomplished effective partnering; but I propose that if we are to have a professional future, we should learn to establish effective partnership arrangements with our various customers--externally and internally.     

Efficient materiel handling and distribution: a design perspective

This article offers a condensed examination of facility design and the interface between owners, hospital managers, and architects in planning for hospital materiel handling and storage needs. A brief history is given of the evolution of materiel management and progress today in efficient ordering, storing, distributing, and inventory and billing. The article closes with a discussion of work redesign and personnel vs. equipment concerns. Two case studies exemplify similar goals from different approaches.     

Materiel management reengineering: value creation through innovation

By reengineering their department's core processes, materiel managers can expand their role in the health care setting while realizing significant cost savings. Using a team model, Inova Health System materiel management staff integrated their processes for vendor selection, purchasing, inventory reduction, and utilization across three hospitals and ancillary services. An integrated approach at all levels of the organization gained buy-in from administrators and staff systemwide.     

The modern health care materiel manager

Today's successful materiel managers must possess a wide range of skills. They must above all be highly adaptable to change and influence others to accept rather than resist change. The role and responsibility of the materiel manager have expanded significantly, requiring higher levels of formal education. In conjunction with this, the quality of communication, both verbal and written, becomes essential. A high degree of human, conceptual, and technical skills must be employed to accommodate the many demands encountered. Finally, the successful materiel manager who feels confident and secure will hire others who do not mirror the manager's style, but rather allow for contrast of expression and technique.     

Career survival strategies for materiel managers

The skill sets and attitudes required for materiel management professional survival continue to change. Just as the industry has evolved for calculators and three-part forms, so too must today's managers evolve into facilitators and information-oriented management. While these new skills are being perfected, three focused strategies initiated right now can enhance your chance for survival. First, get to know your customers intimately. Go to their meetings. Tour their departments. Second, assume responsibility and report materiel cost data that has meaning to senior management and customers. Fill rates and inventory turns offer little value to other managers, but supply cost per discharge can be of value. Third, be proactive in competing with outsourcing competitors. Do not wait until they are on your doorstep before developing a strategy to compete.     

Pressure ulcers and materiel management: cost-effective prevention and care

In summary, it's important for the materiel manager to have an understanding of the clinical aspects of pressure ulcers. By understanding how ulcers are staged, treated, and prevented, the materiel manager will have a better idea why certain products are needed and how they are used to reduce overall patient costs. Specialty beds, replacement mattresses, and high-end overlays represent a significant cost--approximately $500,000 to $1 million based on studies cited in this article. Further proven by research is the fact that these costs can be reduced by carrying out utilization plans with specific criteria for patient selection. Finally, materiel managers can be key coordinators in the entire process since they are often on the front lines in any institution's cost containment efforts.     

Balancing clinical priorities in an era of diminishing resources

By learning to ask both manufacturers and clinicians why a technology is needed, how it compares to the existing technology, and whether it will eliminate the need for the existing technology and by demanding specific answers, much more rational decisions can be made, which will be in the best interests of the community the hospital serves. Materiel managers can play a key role in fostering this process. In addition, by helping department managers develop long-range multiyear plans, materiel managers can help hospitals better manage their existing assets and make better long-term purchasing decisions.     

Maximizing purchase decision factors other than price

Assessing and acquiring technology does not have to be chaotic, driven solely by price, clinical preference, and emotion. With the tools available, it can be distilled to a process of organized common sense, which results in maximum flexibility for the user and allows materiel managers to procure the best, most cost-effective equipment for the hospital.     

Organizational change and survival skills for materiel managers

In an effort to be cost effective and meet changing customer needs, organizations are evolving in their structure. In this environment, leading edge organizations change their culture and create knowledge to continuously improve. Hospital materiel managers need to understand and support their organization's culture changes and respond by adapting or acquiring new skill sets.     

Survival strategies in the era of managed care

The era of managed care has forced an unprecedented restructuring of the health care environment. As hospitals downsize in response, materiel managers should consider adopting strategies that may help ensure their survival, including innovative approaches to supply management and the development of individual responses that will best position them to succeed in this new reality.     

Bracing for survival

As health care continues to move toward smaller, more consolidated support services, materiel managers will face constricted promotion and employment opportunities. Flexibility and a willingness to embrace change as the occasion for personal and professional advancement will be two hallmarks of success. This article focuses on outsourcing and integrated delivery networks by discussing the challenges and opportunities they present.     

Materiel management: a clinical experience.

It is easy to understand why unit managers are eager to embrace a comprehensive approach to materiel management. The system allows for the professionals from the purchasing, supply, and distribution areas to meet and work with the managers of individual departments and units. Recognizable outcomes of this system are improved staff satisfaction because of standardized products; improved nursing competency secondary to product familiarization, and improved quality of patient care because area managers have more time to devote to their individual unit functions. The serendipitous benefit is that areas and personnel within a hospital that were once diverse in goals and functions may now develop positive working relationships around the hospital's prime goal of quality patient care, a marketable commodity.     

Health care reform and the hospital supply chain

With health care reform, hospitals will be differentiated in the marketplace by how well they manage the costs of services. Because products will be market priced, hospital materiel managers will have to minimize all other related acquisition costs. The key opportunities will be in changing processes to eliminate non-value added administrative, supply chain, and process activities and their attendant costs.     

Managed competition

People don't like change. That includes materiel managers, administrators, and clinical providers. Managed competition or managed care will work if, and only if, the American professions and the American public recognize the value of highly educated and qualified clinical and nonclinical providers and if the health care industry responds in kind.     

Health care system redesign: a strategic management framework

The current health care environment can best be characterized as uncertain, unfamiliar, ambiguous, unexpected, untraveled, and amorphous. All administrators and managers are facing a tremendous challenge in managing available human, technological, materiel, and fiscal resources to accomplish their organization's mission. They must be able to assess organizational environments, identify strategies to align the organization and the environment, implement these strategies, and continuously evaluate the outcomes of those strategies. Therefore, health care administrators and managers must adopt a management perspective that is responsive, dynamic, comprehensive, systematic, and both process and outcome oriented. Such a perspective is strategic management.