Contract Process Improvement

Contracting Process

• Medical & surgical supplie
• Evaluate and provide recommendations for improving and decreasing the amount of time needed to negotiate and execute a contract.

Aurora Health Care

• Formed in 198
• 15 hospitals; 150+ clinics; 70+ pharmacies
• Partnerships with UW School of Medicine; UW

Untitled Slide

SWOT Analysis

• Strength
• I
• Weaknesse
• Opportunities
• Threat

Supply Chain

• $987 Million
• Disposable products
• Implantable product

Contract negotiations

• 2 week to 16 month
• 3 parties:
• Internal party - supply chain
• Internal party - Legal/Commercial Transaction Group (CTG)
• External party - Vendor

Literature review

• University of Arkansas, Health-Care Supply Chain Could Benefit from Using Retails Best Practice
• Tony Ybarra, Four Ways to Cut Supply Chain Cost
• Kristi Cox, Allowing Legal to Negotiate Contracts Faster, While Controlling Risk
• Bruce Johnson, Five Ways Supply Chain Can Reduce Rising Healthcare Costs
• Ascension Health, Hospitals Take High Tech Approach to Supply Chai

Methods for Data Collection

• Interviews with CTG & Supply Chain Staff
• What is biggest delay in completing a contract?
• Would there be any value in providing Aurora’s template at the initial meeting with the Vendor? Why or why not?How could the contracting process be improved?
• •Is there a communication issue between CTG and Supply Chain? If so, how would you suggest improving it?
• Data collected from CTG Tracke

Results & Analysis

• Biggest delay - Vendor response time
• Contracting process improvement - time frame for internal feedback
• Provide Aurora's template at initial meeting
• Communication issue/suggestions for improvemen

CTG Contract Tracker Data

CTG Contract Tracker Data

Recommendations

• Internal kick-off meeting - Aurora contract template generation
• Bi-weekly internal conference call - negotiation status check
• Share CTG Tracker on monthly basi
• Discus negotiation timelines and expectations with Vendo

Questions?