2. Strategic Decision
• Objectives
– Material cost reduction in five historically problematic supply categories:
Suture, Endomechanicals, Trocars, Mesh and Topical Skin Adhesives
– Significant cost savings
– Change dynamics in ALL categories – this is about more than suture
• Background
– Market share historically dominated by Ethicon
– Pricing historically controlled by supplier
– Marketplace rewarding TPC Virtual IDN Model
– Success with TPC standardization initiatives resulting in best of class
proposals
• Current State
– Market share reflects widespread national & TPC acceptance of Covidien
– Clinical acceptance is no longer in question
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3. Methodology
• Category identification
• Data review
• Initiative approved for pursuit - TPC Council
• Submission of RFP
• Validation post RFP – TPC Council
• Validation by TPC Perioperative Clinical Value Analysis
Team
• Validation by TPC Board of Managers
• Strategic/logistical planning for implementation
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4. Implementation
• Strategic and logistical planning
– Identification of project leads – TPC Corporate, Supplier and TPC Members
– Timelines developed
• Member needs
• Resource allocation and coordination
• C- Suite Involvement
– Presentations
• Data
• Expectations
• Communication throughout project
• Partnership between Supplier, TPC and Aspen
Healthcare Metrics
• Physician to physician interaction
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not CONFIDENTIAL Property ofparties. If you received this information in error, please notify the office of the President of the TPC at 469-366-2105. He may instruct you to destroy it or return it to the TPC.
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5. Outcome
• 3 of 11 Members were already Covidien in majority of
categories or facilities
– Large facility within one of the “Covidien” IDNs conducted an evaluation
and converted
– Remaining 2 members agreed to convert remaining products
• Evaluations conducted at all but 1 Member
• Clinical Acceptability vote – August
• TPC Council vote – August
• 9 of 11 Members commit to convert majority of product
categories to Covidien
TPC CONFIDENTIAL: This information is confidential and proprietary to the Texas Purchasing Coalition (“TPC”), its Members and/or its vendors. It is provided on the understanding that the recipient will
not CONFIDENTIAL Property ofparties. If you received this information in error, please notify the office of the President of the TPC at 469-366-2105. He may instruct you to destroy it or return it to the TPC.
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7. Lessons Learned
• Data validation
– “No cross” products
– Utilization patterns
• Distributor involvement
• C- Suite engagement
• Inventory depletion/coordination
• Adequate inventory availability
• Communication, communication, communication
– Supplier and members
– TPC/Aspen Healthcare Metrics and members
– Supplier and TPC/Aspen Healthcare Metrics
– Supplier, Distributor(s) and TPC/Healthcare Metrics
– Member to member
– C- Suite to C-Suite
– Clinician to clinician
TPC CONFIDENTIAL: This information is confidential and proprietary to the Texas Purchasing Coalition (“TPC”), its Members and/or its vendors. It is provided on the understanding that the recipient will
not CONFIDENTIAL Property ofparties. If you received this information in error, please notify the office of the President of the TPC at 469-366-2105. He may instruct you to destroy it or return it to the TPC.
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8. Current State – 2 months post award
• “Mixed bag”
• Some physicians requesting competitive product
• Many physicians now willing to convert
• “Fine tuning” post-conversion
• Continuation of peer to peer discussions
• Continuation of C-Suite involvement
• Competitive tactics addressed pro-actively
TPC CONFIDENTIAL: This information is confidential and proprietary to the Texas Purchasing Coalition (“TPC”), its Members and/or its vendors. It is provided on the understanding that the recipient will
not CONFIDENTIAL Property ofparties. If you received this information in error, please notify the office of the President of the TPC at 469-366-2105. He may instruct you to destroy it or return it to the TPC.
disclose it to third MedAssets