Contracting |

1. Price Protection (firm pricing over the term of the contract)*

Fewer than 40% of products are covered by price-protected contracts for at least one year.
Between 40% and 60% of products are covered by price-protected contracts for at least one year.
Between 60% and 75% of supplies are covered by price-protected contracts for at least one year.
More than 75% of supplies are covered by price-protected contracts for at least one year.
I don’t know.

2. Centralized Contracting*

Our contracting process is decentralized.
We have a centralized contracting team, but some departments/service lines still negotiate their own contracts. There may be multiple ERPs.
Our centralized contracting team manages spend through a single database and a single ERP. Some individuals outside of supply chain participate in contract evaluations.
Our centralized contracting team manages spend through a centralized database and a single ERP. A multidisciplinary team uses data to work with vendors to negotiate outcomes-based and risk-based contracts through a standardized model.
I don’t know.

3. Active Contracts & Product Utilization*

Our supply chain department maintains an Excel file of active contracts.
Our supply chain department maintains an interactive database of purchase and product use by individual stock keeping units (SKUs).
Our supply chain department manages 80% of regularly used medical products in the nursing and procedure units in a low unit of measure (LUM) or periodic automatic replenishment (PAR) system.
Our supply chain department has an effective and collaborative clinical value analysis structure that removes products from service when new items are approved.
I don’t know.

4. Making Use of GPO Contracts & Other Services*

We only make use of a few GPO contracts and services.
We purchase about 50% of supplies through electronically activated GPO contracts. We use some additional GPO services.
We purchase about 50%–75% of supplies through electronically activated GPO contracts; some services are contracted through a GPO.
We purchase more than 75% of supplies through electronically activated GPO contracts and first consider what the GPO offers when it comes to service contracting. We make broad use of additional GPO services; our GPO is actively involved in supporting our cost, care quality, and financial outcomes-based efforts.
I don’t know.

5. Drafting Local Contracts*

Our local contracts are drafted primarily on the basis of end-user preference, with little or no consideration of cost and without using a competitive bid process.
Our local contracts are drafted primarily on the basis of end-user preference, with some consideration of cost or product standardization. We rarely use a competitive bid process.
Our local contracts are drafted for specific categories, with a focus on cost and product standardization. We use a formal competitive bid process.
Our local contracts are drafted for specific categories, with consideration given to cost, product standardization, and quality. We use a formal competitive written bid process that involves a multidisciplinary team.
I don’t know.

6. Supply Chain’s Role in Strategic Sourcing*

Supply chain manages official inventory and tracks requisitions.
Supply chain runs value analysis committees, which review new products.
Supply chain analysts serve on value analysis committees chaired by clinical leaders who determine which new products and technology will be evaluated.
Supply chain, with clinical and finance leadership, is part of a decision-making team that considers the financial and clinical outcomes in new product adoption.
I don’t know.

7. Creating Value-Based Contracts*

Select all that apply.

We factor in the quality of functionally equivalent products in competitive bids.
We seek out our organization’s leading clinical practitioners to determine the qualitative difference between functionally equivalent products.
We engage clinical, risk, and quality managers to identify products that may affect the outcome of specific procedures, disease states, or industry problems.
We develop a pro forma-based RFP that challenges suppliers to share risk/reward as a quid pro quo to sell products to our organization.
None of the above.
I don’t know.

8. A subset of our contracts for key medical products include the following elements beyond purchase price:*

Select all that apply.

Ability to shorten length of stay or avoid complications that extend length of stay.
Ability to demonstrate financial differentiation from functionally equivalent products through improved reimbursement.
Allows patients to be treated outside the acute setting (e.g., outreach or home care).
Has quantifiable rewards or penalties for not meeting criteria in an evidence-based, reportable way.
None of the above.
I don’t know.

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