THE PROGRAM GUIDE Your guide to Opt-In saving strategies, processes, and participation techniques.

Transcription

1 THE PROGRAM GUIDE Your guide to Opt-In saving strategies, processes, and participation techniques.

2 paper towels AND tissue OFFICe SUppLIeS HOUSeKeepING products exam AND SURGeON GLOVeS As a GNYHA Services member, you can already access signifi cant discounts on medical/surgical and non-medical/surgical products and services through the GNYHA Services/Premier contract catalog. Opt-In provides an enhanced purchasing option in addition to our contract portfolio. The program combines volume commitment, quality evaluation, supplier competition, and benchmark realization to help participants save even more on these same products and services. 2

3 What is Opt-In? Mounting cost pressures continue to burden even the most supply chain-savvy hospitals. Innovative strategies are essential for achieving savings. That s why GNYHA Services created Opt-In. Opt-In is a voluntary committed-volume program that combines the power of purchasing aggregation with supplier competition, including quality evaluation and benchmark realization, to provide additional savings for participating hospitals. Opt-In is not a typical committed-volume program it is an innovative strategy that allows members to drive purchasing expectations and outcomes. This guide is designed to help you better understand the Opt-In purchasing process, as well answer any lingering questions you may have about how to get involved. How Does Opt-In Work? Opt-In comprises a strategic group of GNYHA Services members who voluntarily combine their spend in order to enter into valuable, committed-volume agreements. Opt-In is able to achieve significant results because these members 1. work together to qualify the suppliers that will participate in the competitive bidding events. 2. share the perspective that different suppliers products/services can be functionally equivalent. 3. are willing to pre-commit their volume with a self-defined set of savings requirements. When a pre-defined set of volume is available, suppliers will aggressively compete to attain the business. The Opt-In Process Opt-In participants can expect to follow these steps when taking part in an Opt-In event. If you have completed an Opt-In Program Agreement, you ve already completed Step 1! Commitment Product Quality Evaluation Supplier Competition Benchmark Realization Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Hospital chooses to participate by signing an Opt-In Program Agreement. Hospital chooses a specific event in which to participate and completes an Event-Specific Letter of Commitment. This letter enables members to establish reasonable savings expectations, product requirements, and volume commitment. The GNYHA Services Opt-In team creates a Request for Information (RFI) to help event participants qualify suppliers. Participants may be asked to conduct a product quality evaluation during this step. Participant-qualified suppliers respond to the Request for Proposal (RFP), which includes the event participants price target and product requirements (set in the Event-Specific Letter of Commitment). The suppliers who meet the minimum price and product requirements will be invited to participate in the reverse auction. Reverse auction takes place in which suppliers compete to provide the most competitive pricing and overall value proposition in order to secure a contract award. The GNYHA Services team and participants evaluate the reverse auction results and award a contract to the supplier(s) that best meet(s) participant requirements. 3

4 Opt-In Enrollment Each facility must complete, sign, and submit an Opt-In Program Agreement in order to participate. GNYHA Services requests that a C-suite and/or administration-level executive sign this agreement. A copy can be found at To participate in a particular Opt-In event, each facility must complete, sign, and submit an Event-Specifi c Letter of Commitment. The upcoming event schedule and a copy of the Event-Specifi c Letter of Commitment can be found at A signed Event-Specifi c Letter of Commitment is required for each event. 4

5 Getting on Board We ve listed the most frequently asked questions. We hope these FAQs will help you understand the Opt-In program better. Should you have a question that is not addressed here, please contact your GNYHA Services Business Solutions Director or an Opt-In team member (contact information is located on page 7). We look forward to helping you save!? FAQs 1. By submitting an Opt-In Program Agreement and an Event-Specific Letter of Commitment for the events in which my hospital wants to participate, to what exactly am I committing my hospital? By signing the Opt-In Program Agreement, a senior-level executive in your facility is affirming your health system s desire to become an Opt-In participant, as well as his/her understanding of the Opt-In participant requirements. This document need only be completed once. Once the Program Agreement is completed, your health system is able to participate in any/all Opt-In events by completing an Event-Specific Letter of Commitment. By signing this form, your facility agrees to participate in a specific event so long as the requirements and savings that you requested in the document are met. Your commitment also means that you are willing to consider suppliers other than the supplier you are currently using for a specific product. Getting the lowest price requires competition between suppliers. 2. How is the event schedule created and how are event deadlines set? The Opt-In team sets the event schedule in coordination with the GNYHA Services and Premier contracting schedules. Event deadlines are established to ensure that there are no conflicts between these schedules. We also aim to have our events target contract categories that have multiple suppliers and are a significant area of spend for GNYHA Services members. Critical mass is necessary in order to effectively meet the event deadlines. Critical mass is established when the committed volume of an event reaches a level sufficient to attract competitive supplier interest and achieve the savings expectations outlined by the participants prior to the event. 3. How are the participating suppliers chosen? The participating suppliers are those currently being used by participating members, regardless of whether they are a GNYHA Services/Premier contracted supplier. GNYHA Services submits a Request for Information to these suppliers once we have all of the participating member requirements for the event. GNYHA Services and the participants then complete a product evaluation and determine which suppliers meet the outlined requirements. The selected suppliers participate in the reverse auction. 4. I am interested in joining an Opt-In event because my incumbent supplier is participating. Do I have to convert at the close of the event if my supplier is not awarded? Yes. Opt-In works by combining participants committed volume. The volume commitment, achieved through the Event-Specific Letter of Commitment (see Question 1), allows the program to make a quantum leap to greater cost savings. This also means that all participants must be prepared to use the supplier chosen by the group, whether their incumbent supplier is selected or not. The Opt-In team produces a Product Conversion Guide, which is designed to help organizations convert should it be necessary. 5

6 5. What can I expect once I submit my Event-Specific Letter of Commitment? Once your facility commits to an event, you will be asked to submit data that is specific to that event. If you are a SpendAdvisor/MySpend user you will not need to complete a separate data form, as GNYHA Services already has access to this information. Please note that you will, however, be asked to affirm that the SpendAdvisor/MySpend data is representative of your historical spend and pricing. The key stakeholders in your organization (supply chain/materials management, value analysis committee, clinical leaders, etc.) must also be prepared to participate in a product evaluation, should that event require one. 6. My facility does not have a value analysis or product evaluation committee. Does GNYHA Services provide any product evaluation assistance, as this is a critical step in some events? The Opt-In team holds a kick-off call in which participating members are given the opportunity to share product evaluation best practices. 7. The event schedule covers an array of areas. Are the more clinical, PPI-related events handled differently than others? Each event category includes standard tasks and custom tasks. The custom tasks for clinical/ PPI-related events are identified in the early stages of the event. They are communicated to participating members in a variety of ways, including direct communications from the Opt-In team. They are also in the Opt-In Event Guide. 8. With whom in my organization should I speak first before committing to an event? The answer to this question varies by facility and event. However, it is recommended that supply chain professionals, hospital administrators, and clinical leaders always be involved in the decision to commit to an event. Here are a few examples of those who should be involved (by product category): Standard and Safety Hypodermic Products: Supply Chain/Materials Management, Value Analysis, Nursing Leadership, Laboratory Leadership, Pharmacy Leadership, and Nursing Education staff. Disposable and Reusable Pillows: Supply Chain/ Materials Management, Environmental Services, and Nursing Leadership staff. 9. Who is available from the GNYHA Services team to help get members of my organization on board for an event? The GNYHA Services Opt-In team as well as our nursing, imaging, laboratory, and foodservice subject matter experts are available to meet with key stakeholders in your organization about Opt-In events. 10. How much can my organization expect to save by participating in Opt-In events? Aggregate program savings equaled 17% following the first five events. We expect to continue to produce savings in line with previous results. 6

7 Opt-In Event Resources Event and Product Conversion Guides outline all of the important event details needed to help get others in your organization on board, handle product conversions, etc. Event Guides provide a brief overview of the event and include the products being considered, potential participating suppliers, event strategy, event spend target, and important event deadlines and dates (Event-Specific Letter of Commitment, data requirements, reverse auction, product evaluation, and contract award). An Event Guide is available for each Opt-In event. Product Conversion Guides include potential savings information, clinical conversion degree of difficulty, what conversion challenges to expect, key organizational stakeholders, and other related information. Visit to review the upcoming event schedule and access specific Event and/or Product Conversion Guides. Learn More About Opt-In The Opt-In team regularly hosts conference calls to discuss upcoming events and program information. Contact an Opt-In team member to register for an upcoming call. Interested participants may also contact their GNYHA Services Business Solutions Director or an Opt-In team member with program-related questions at any time. Opt-In Team Contact Information: David Zimba Vice President, Custom Contracting dzimba@gnyha.org John McNamara Director, Strategic Sourcing jmcnamara@gnyha.org David Wolf Director, Strategic Sourcing dwolf@gnyha.org Khanh Tran Analyst ktran@gnyha.org 7

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