Materials/Resource
Mangement Services
PPh Group, a specialized division of the Philadelphia Protestant
Home (PPh), is dedicated to providing innovative management
and consulting solutions to the health care industry. Quality
care and services for aging individuals within a community
is the Protestant Home’s heritage. PPh Group mirrors
this image in its business practices while also supporting
organizations in acute care and other health care settings.
There
are many factors that impact an organization’s ability
to provide affordable yet important and necessary services
for residents within a community. Cuts to reimbursement,
a growing senior population with increasing expectations
and family dynamics that can create customer relations issues,
all point to a critical need. How does an organization contain
or reduce costs while enhancing and expanding services?
By offering
an array of supportive services in a variety of business
lines, we can meet many needs within organizations. We focused
on developing an in-depth and all inclusive materials/resource
management program six years ago. Since that time we have
realized the financial benefits of having a comprehensive
facility-wide program covering every facet of purchasing,
medical supply management, durable medical equipment, product
quality, vendor selection, and capital project management
to name a few of the areas.
The approach
we used included a significant amount of education for all
staff so they understood the benefit of a centrally controlled
approach to materials/resource management. In the past many
people thought of this function as “purchasing.”
Either departments bought things they needed from the vendor
of their choice, or the purchasing agent placed the order.
Our first step was to write and implement policies and procedures
along with standard operating procedures that governed every
aspect of this newly created department. Gaining staff trust
took more time. We slowly built credibility by showing them
that they still would be involved in the overall process.
Staff began to see us as the resource who brought in the
best vendor at the right time, coordinated product training,
and established parameters so that needs were met while
maintaining fiscal responsibility. Materials/resource management
became, for us, the central or coordinating point for all
departments allowing them to focus on the day-to-day operations.
Our professional
staff, who works directly in the operational trenches, will
work side-by-side with your staff. Peer-to-Peer we work
together in developing customized programs and services
to meet the exact needs of an organization. PPh Group is
sincere in its desire to form partnerships with peer organizations
while becoming part of your continued growth and success.
Capital
Planning
This
is the big-ticket area for all organizations. Long-range
planning and managing the physical plant, grounds, equipment
and vehicles is critical to maintain the viability of an
organization. Working directly with your staff we would
conduct a complete assessment of your current conditions.
Looking at your prior history of capital expenditure would
help in prioritizing an asset management plan. We would
meet with your development department and discuss possible
funding sources if there are cash limitations. Our vendors
would be made available to you with the same pricing and
service agreements we enjoy. Depending on your preference,
a three- or five-year plan can be written and presented
to appropriate staff and board members as needed. The result
is the comfort and knowledge that you have planned for and
protected your major assets.
Durable
Medical Equipment
DME represents
an area of opportunity that is often overlooked. Many organizations
rent this equipment from a company who handles the delivery,
maintenance, and billing. This method typically relieves
the organization of having to manage this area, but they
also lose the revenue opportunity. If the rental companies
can make money on DME, so can you. In most cases, depending
on the size of your company, you can realize a one- or two-year
payback. After that, the amount you charge, based on the
same rates as Medicare Part “B” reimburses companies,
falls to your bottom line. The only other expense you may
occur is preventive maintenance on some of the equipment.
Some examples of potential DME are: nebulizers, oxygen concentrators,
safety mats, suction machines, quantum feeding pumps, specialty
wheelchairs, specialty beds and trapeze, to name a few.
We can assist you in establishing a program, developing
the tracking systems, and outline the specific DME to meet
your needs.
Inventory
Control
Without
realizing that it is occurring, individual departments slowly
build their inventory to prevent any chance for an out-of-stock
occurrence. Theoretically, this may seem to be a sound management
practice because it eliminates the “emergency”
situation. In reality, it ties up a significant amount of
cash and never truly eliminates being out of stock. High
inventory often means a lack of systems, infrequent inventory
reconciliation, lack of par levels, and fluctuating expenses
Our approach would be to discuss and analyze the buying
patterns and routines of each department. Consistent standard
operating procedures would be established by working with
your managers and staff. Order guides, par levels, restock
reports, and inventory reconciliation would be the cornerstones
of the plan. Weekly and monthly spending limits would be
based on the budget. The resulting program will reduce costs
and staff time, while having the needed products in-house
when required.
Product
Quality
A committee
of key staff from nursing, administration, and materials/resource
management can make introducing new products a seamless
process. This group would be responsible for introducing
products to staff and residents/patients, coordinate the
testing process, and make recommendations for a change.
Routinely, this team should review pharmaceutical and over-the
counter purchases and present trends to the appropriate
medical team. We would work with your staff in developing
the parameters and level of authority this group would have.
They become the gatekeepers for cost control, service and
product excellence, and resident/patient satisfaction related
to medical supplies, DME, and pharmacy.
Purchasing
and Medical Supplies
Formal
systems for overall purchasing and for medical supply management
are critical to the health of an organization. As described
on the opening page, we took a step-by-step approach to
formalizing this aspect of the overall program. A PO system
was established, along with purchase tracking for each department.
Accountability and responsibility were key factors that
staff now knew lay on their shoulders. An essential component
is not to exclude the former buyers/department managers
from this process. They need to stay involved in establishing
specifications and requirements for products and services
they use. This is especially important when working with
nursing related to medical supplies.
We can
work with you in conducting a complete assessment of your
purchasing practices. Separately we would review how you
manage and coordinate the medical supply program. If a software
management system is not used, then individually created
spreadsheets, forms and systems must still be utilized.
Critical components of this program are:
