Supply Chain Management: Q&A with Steven Chyung
Steven Chyung, vice president of supply chain management for Sisters of Charity of Leavenworth Health System, spoke recently with Healthcare Finance News Contributing Writer Betsy Caron about what he expects to be the major supply chain management trends in 2012.
Can you talk about the supply chain spending trends you predict for 2012?
I think there are lots of changes in store for 2012. I’d highlight several things: First, we will relentlessly pursue improvements in supply chain costs. External pressure will mandate this. Second, manage risks most effectively in areas such as the pharmacy where we continue to have shortages. Healthcare organizations, pharma manufacturers and the FDA will need to come together and partner to solve this. Finally, we will enhance partnerships with clinicians to drive supply cost savings while maintaining quality of care. We are on the precipice of significant change in health care: Accountable Care Organizations, bundled payments programs and other innovative strategies that will change the relationship and incentives among the clinician, payer, health care organization and patient. This will create significant opportunities for supply chain improvements, but it will require a much more sophisticated level of engagement.
How will 2012 trends differ from 2011 or other previous years?
The speed of change will start to accelerate. Traditional methods of driving supply chain performance, while important, will not drive the kind of value that will be required.
What will you be putting the most resources toward this year and why?
We will focus on adding and enhancing our talent. Our ambitions require that we significantly upgrade the capabilities of our supply chain organization, including more analytics and insights to drive better supply chain decisions. Business partnering will also be a critical focus. We can drive the traditional benefits with traditional tactics, but the next level of value will come from partnering with key decision makers.
What issues should supply chain executives consider in 2012 that they might not be anticipating?
It will be important to consider the level of engagement and resources that will be required across the enterprise. Most healthcare organizations are undergoing significant amounts of changes: Innovative technologies, new business models, changing physician relationships, standardizing process and workflows and significant IT systems investments. Supply Chain organizations should be playing a key role in all of these changes as they represent significant opportunities. At the same time, we may be underestimating the resources that will be required to be successful.
This is an exciting time. If you enjoy driving change, healthcare supply chain will be a great place to work.
