Implementing structure and control over unofficial inventories in a multispecialty group practice

Materiel managers have been in control of most aspects of the supply chain except for the inventories of the end users, which account for 70 percent of the inventory supply dollars. When the Materials Manager at Lexington Clinic in Lexington, Kentucky, was approached by the Clinic's Chief Executive Officer to implement cost containment measures, the Materials Manager seized the opportunity to implement a six-step program aimed at controlling those supply dollars. Through requisition training, enforcing approval levels, limiting the number of requisitioners, and establishing par levels on floor inventories, the clinic's "unofficial" inventory supply dollars were reduced by 7 percent in the first 12 departments where the par levels were established. The program was hailed as a tremendous success and a positive experience for everyone, from nurses to warehouse clerks.     

Could a clinical mistake land you in jail?

Internist Gerald Einaugler is facing 52 consecutive weekends in New York's notorious Riker's Island jail because he was slow to hospitalize a terminally ill nursing-home patient. A jury convicted the Brooklyn physician last June of reckless endangerment and willful neglect, both misdemeanors. He has lost his privileges at a hospital and two nursing homes, and has been disqualified as a Medicaid provider. He may also lose is medical license. What he considered conservative management, a prosecutor saw as criminal neglect, a deliberate attempt to thwart appropriate treatment.     

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.