Home' The Source : First Quarter 2018 Contents In 2017, AHRMM released the Cost, Quality, and Outcomes (CQO)
Report on Population Health Management. The report was
• link supply chain to other aspects of healthcare,
• offer insights from healthcare thought leaders on the role
supply chain can play in population health management,
• showcase case studies with specific examples of how
supply chain professionals have supported population
health management initiatives within their own
AHRMM‘s 2016 Board Chair, Mary Beth Lang, DSc, RPh, MPM,
CMRP, EVP, Cognitive Analytics Solutions, Pensiamo, led the
CQO report task force that included experts from the fields of
healthcare supply chain, finance and value analysis. The task
force examined the current population health management
landscape to determine the impact these programs have on
the financial health of hospitals, health systems and other
health-related community organizations. Reaching out to
these stakeholder groups, the task force identified healthcare
organizations that had successfully implemented population
health management programs and solicited their insights on
best practices recommended for success.
Based on the research, the task force developed several guiding
principles for others to employ when implementing population
health management initiatives, including:
• Supply chain professionals serve as the primary source
of data and analytics on which many population health
management programs are measured.
• Supply chain acts as the “link” that ties together the various
stakeholders from across the continuum of care, including
clinicians, suppliers and distributors.
• Supply chain can be central to effective population health
management with business case development that
demonstrates how the approach or plan delivers value
with lower costs, better patient care quality, measurable
improvements in outcomes, greater revenue capture and/or
a combination of these benefits.
Other key themes established:
Cross-functional collaboration drives improved results in
care and cost: Successful population health management
programs employ a holistic approach to health promotion and
patient care, where internal and external healthcare providers
and stakeholders are working together to improve the health
of a defined population and the quality of healthcare in the
community; supply chain participating in cross-functional
collaboration is critical.
High-performing supply chain organizations enable a balance
between cost and quality: In today’s environment of value
versus volume, successful population health management
programs must balance cost and quality to deliver true value to
a healthcare organization and its consumers/patients.
Supply chain leverages supporting technologies effectively:
Technology is key to implementing, managing and sustaining
most population health management programs where
information sharing and communication between various parties
is critical to improving the health of a population. While some
hospitals and health systems are developing solutions internally,
others are leveraging third-party solutions providers with
expertise in this area.
Supply chain enables data-driven decisions: Many population
health management programs require key stakeholders to
change processes, behaviors, practices or products. Those
leading these initiatives must be armed with robust, objective
and scientifically based data and evidence that can be used to
educate stakeholders on the need for change and secure their
support for these changes.
Supply chain strategy aligns to IDN strategy: The business of
healthcare and the delivery of care continue to rapidly evolve.
A sustainable and scalable strategy has to align to an IDN’s
(integrated delivery network) overall strategy. Population health
management initiatives implemented today must be designed
to be sustainable and scalable over time—addressing not just
current patient and consumer needs, but the anticipated future
Because the definition of population health management is
so broad and encompasses a wide range of programs—from
bundled payments to community wellness—the task force
worked to identify case studies that span six care domains in this
report. Each of these examples demonstrates the invaluable role
that supply chain professionals play in this emerging care model.
AHRMM is continuing to build a meaningful repository of case
studies, tools and other resources focused on education and
advancing population health activities across the healthcare field
and healthcare supply chain. Please contact AHRMM at ahrmm@
aha.org if you are interested in participating in this important
The Association for Healthcare Resource & Materials Management
(AHRMM), a professional membership group of the American
Hospital Association (AHA), is the leading association for the
healthcare supply chain field.
AHRMM CQO REPORT IDENTIFIES SUPPLY CHAIN
AS A DRIVER IN POPULATION HEALTH MANAGEMENT
HEALTHTRUST IS A PROUD CO-SPONSOR
OF AHRMM’S CQO INITIATIVE
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