Contracting |

For each question, select the response that best describes your organization.

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.
Do you have any questions or comments?
This will not affect your assessment score.
Email*
Job Title*
Are you a hospital employee?*
- Yes
- No