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
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
