The issue

  • Many suppliers (18+) resulting in reduced spend leverage
  • Prosthesis selection based on supplier systems familiarity not generic technical spec
  • Large cost variances for similar hip and knee systems from supplier to supplier
  • Large amount of “additional” costs associated with instrumentation and loan kits
  • Huge variety in ‘same’ type of hip and knee systems (7+ systems for each)
  • Too many system variations (75+) resulting in staff needing to be trained on many systems/brands
  • Varying published data to support clinical outcomes of implants resulting in low predictability of patent outcomes
  • Huge cost-per-procedure variance impacting profitability at Orthopaedic Consultant and Hospital level
  • Need to increase profitability

What we did

  • Increased spend with fewer, more capable suppliers
  • Established patient profiles. Use patient profiles to guide system selection
    Linked into project to Care Pathways
  • Established minimum acceptance of prosthesis outcomes (leveraging ODEP ratings for both hips and knees)
  • Established dedicated training for Orthopaedic Consultants and clinical staff
  • Renegotiated with partner suppliers based on redistributed business (volumes)
  • Established traffic light reporting for Ortho hip and knee (cost and compliance to agreement)
  • Established a clinical advisory group to evaluate innovation and agree protocols to be followed by all Orthopaedic Consultants across the Group
healthcare orthopaedics

The results

  • Delivered 22% in annualised savings through volume leverage and brand/system standardisation
  • Reduced clinical risk by only allowing 10 or 10* ODEP rated products and eliminating Orthopaedic work at low volume sites
  • Increased profitability substantially which allowed the BD teams to improve NHS and PMI contract win rates
  • Reduced supplier power (demonstrated appetite and willingness to shift balance of power)
  • Improved patient satisfaction and outcomes by channeling more work to Orthopaedic Consultants with higher PROMs scores
  • Reduced subjectivity by ensuring system selection based on patient profile
  • Standardised length of stays for given procedure and patient profile

An award-winning team

Curzon consulting mca finalist 2019


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