2. Top ten categories represent 71% of total savings Priority Savings Target Tactic 1 MUM $3,285,581 Full implementation of all approved MUM initiatives. 2 Inventory Turns $3,731,922 Increase yearly inventory turns by 1/2 turn system-wide 3 Reprocessing $2,305,190 Maximize re-processing throughout the hospital. 4 Custom Procedure Tray Standardization $840,990 Conversion to standardized trays where applicable. 5 Suture/Endo/Trocar $2,500,000 Implementation of new agreement. 6 Spine $1,818,395 System-wide matrix pricing. 7 CRM $1,795,494 Facility level pricing. 8 Trauma $493,133 Standardize 80% of trauma spend to Stryker. 9 Stents - DES $414,871 Facility level market share optimization. 10 Clinical Resources On-site $4,000,000 On-site clinical assessment and implementation. 11 FY10 Workplan $8,814,424 Implementation of GPO contracts Total $30,000,000
5. Review of Goal Roadblocks and Missed Opportunity with CFO FY10 Priorities FY10 Savings Target FY10 Actual Savings Missed Opportunity Status Obstacle Hospital Action Item CRM $60,012 $0 Received pricing for Biotronik; working with national contracting to finalize pricing with Medtronic and St. Jude None None DES Not a FY10 Goal for the region. None None Trauma $150,181 $0 Stryker has completed a series of meetings with the executive staff and identified inventory exchange to take place. Awaiting date to start trial. Unable to confirm that conversations have taken place between Estela Chapa and the primary trauma surgeons to introduce initiatives. Schedule date for Stryker trial. Spine $858,032 $1,773,717 Initiative complete. Reports distributed from 11/09 to 3/10 show savings of $1.4M for Shoreline and Memorial. Savings to be recorded on the April scorecard. None None Clinical Resources On-site $173,000 Not a FY10 Goal for the region. None None CPT Standardization $221,380 $0 Initiative underway for Labor and Delivery and OR to standardize custom procedure trays system-wide. Region participated in both kick off meetings. Currently thirty-two custom packs in place at facility. New C-section trays should be implemented end of July. Ann met with OR leadership two weeks ago and introduced project--OR will move faster. None None MUM $764,078 $1,150,832 Implementation of the ten approved initiatives. None None Reprocessing $547,887 $251,113 $139,640 Initiative underway with additional savings opportunities identified. Categories where opportunity exists are external fixation, ultrasonic scalpels, endoscopic trocars, and laparoscopic devices. Set up educational sessions for surgeons with Ascent MD's. Endo/Trocar/ Suture $333,221 $7,524 $2,806 of Covidien Endo inventory has to be "burned down" because it could not be returned. Trocar product trial to be completed. Estimated Trocar savings with Applied Medical is $169,672. Minimal savings with conversion to Covidien for trocars. Complete trocar product trials with Applied Medical. Inventory Turns $376,795 ($63,421) A baseline adjustment was made incorporating the implant investment and bulk buys. February 2011 upgrade to Meditech 5.64 is preventing implementation of the Min/Max Reports and automated inventory turns analysis from HBI data. Report all bulk buys and service line inventory increases to Tina Hanson at month end close for baseline adjustments.