Adena Health System, located in Chillicothe, OH, includes four hospitals in Chillicothe, Waverly, Greenfield and Washington Court House, as well as six regional clinics with a total of 341 beds.

“Our supply chain efforts are looked at differently than they were 18 months ago, in part because we are quickly receiving relevant and timely information to make both economic and clinical decisions.”

In the continuously evolving healthcare industry, independent health systems like Adena Health face numerous challenges. These obstacles can range from regulatory compliance and reimbursement issues to technological advancements and changing patient expectations. As the Chief Financial Officer, Jim McManus and his team must proactively address these challenges while keeping the organization’s financial health and the quality of patient care at the forefront. 

In Adena’s efforts to improve operating margin, one area that emerged as an opportunity was the need for additional supply chain talent.  Finding the right talent in the supply chain field can be challenging due to the specialized nature of the roles, the demographic exit of the baby boomer generation from the workforce, and the increasing demand for skilled professionals.  While Adena strives to transform their supply chain into a strategic asset by leveraging the strengths and expertise of their team, they needed to identify additional individuals who possessed not only the necessary technical knowledge but also the ability to work collaboratively and strategically to support the organization’s initiatives.

McManus had previously heard of Inspirity Health Partners during his tenure with a Health System in California and while it was conceptual at the time, the solution became more intriguing with the addition of the Mayo Clinic Supply Chain Management team.   As an advocate for leading the market with innovative business strategies, he felt Inspirity aligned perfectly with their vision.  In addition, the Inspirity partnership brings with it the specialized talent and skill set already in place, allowing Adena to access targeted expertise to efficiently develop and execute supply chain strategies to meet organizational goals.

Integrating with Inspirity:

McManus presented the Inspirity model to a key member of his team, Andrea Chavez, MBA, MSSCM, Vice President Supply Chain & Real Estate and she was immediately intrigued with the ability to tap into the Mayo Clinic Supply Chain Management team, while also having the opportunity to be an early adopter of a new program to the market that would help her quickly design and implement improvement strategies.   

“We are considered to be a smaller organization, which naturally dictates a smaller team, but we still have impressive goals for our supply chain efforts. The resources and scale Inspirity brings to the table allows our bandwidth to expand, essentially allowing us to manage multiple initiatives at same time.” – Andrea Chavez, MBA, MSSCM, Vice President Supply Chain & Real Estate

When describing Inspirity to her staff and leadership, she emphasized the resourcefulness, agility, and speed it brought to support the supply chain.  She highlighted how Inspirity’s approach allowed her team to run multiple initiatives in parallel, without overly straining internal resources.  “Inspirity became the ideal partner to help us achieve our goals efficiently,” said Chavez.  “For example, we can more appropriately address areas like EVS and laundry, or food and waste management, while continuing to focus on other traditional supply chain categories concurrently.”

Natural, Rapid Collaboration:

One area that quickly stood out about Inspirity was how naturally the collaboration developed, particularly demonstrating a commitment to active listening while incorporating input and ideas into the partnership. By valuing their voice, the Adena team felt heard and respected, fostering a sense of ownership and empowerment. This inclusive approach created an environment that ultimately led to a more productive and fruitful collaboration

“Adopting Inspirity’s operational playbook was pivotal to our success, allowing us to quickly align with their strategic vision and elevate our supply chain processes,” said Chavez. “This rapid collaboration and alignment have been fundamental in achieving a streamlined and efficient partnership.”

Because the initiatives are spanning multiple facets of the supply chain, Chavez begins her day by reviewing all aspects of the Inspirity partnership, ensuring that timelines are met, and initiative discussions remain collaborative and progressive.  In addition, the Mayo team meets with Andrea and her team several times a month working through their category management plan, reviewing compliance levels and ensuring performance metrics are in line. 

By prioritizing communication and alignment, engaging with the initiatives, and receiving relevant and timely information, Adena has been able to effectively manage multiple strategies. “Our collective approach enhances decision-making capabilities and enables our team to adapt and respond to changing circumstances promptly,” said McManus. “As a result, we can maximize the impact of the initiatives and drive positive outcomes for both economic and clinical aspects of our operations.”

Building trust, achieving compelling results:

The collaboration between the Adena team and the Inspirity team has proven to be highly beneficial, resulting in significant cost reductions across multiple categories such as commodities, pharmacy, medical devices, and purchased services. The insights and experiences shared by the Inspirity team have exceeded the initial expectations, leading to more substantial cost savings than anticipated mainly as a result of a more comprehensive and versatile approach to value creation, rather than focusing on a single category at a time including:

• Inspirity team took on responsibility for the overall management of over 25 medical-surgical vendors which included processing more than 15,000 invoices – allowing Adena to issue payment to a single vendor
• Service levels have increased by 20% in a relatively short period of time
• Across the board – improvements in product standardization, quicker execution of initiatives which yield cost savings and better resource management.
• Engaging with and coaching to engage in clinically focused dialog tied to the economics to provide a clearer picture for physician and clinical staff
• Optimized distribution management
• Incorporated a price assurance strategy
• Clinical practice integration, helping manage efforts throughout the organization
• Support with connecting to the right vendor contacts, for faster resolution

What McManus found attractive about the program was the opportunity to engage in the procure-to-pay system and streamline back-office functions.  “The ability to focus on indirect spend (primarily purchased services) is important,” said McManus, ”there are not many third-parties who can provide a sustainable solution to managing those types of expenses.”   

In addition to value goals, the team is tracking conversions, committing to timelines and implementing initiatives, essentially bringing in a disciplined structure to their operations.  This includes establishing both executive and operational committees that are collaborations of Inspirity and Adena team members that drive strategies and pursue opportunities, together.  

“What I appreciate most is the partnership’s ability to adapt to our needs,” said Chavez,” providing both strategic support and the flexibility to tackle multiple projects simultaneously, without overwhelming our internal teams, it’s a type of ‘at the elbow support’ that can quickly benefit us.”

Conclusion:

Adena sees Inspirity as a strategic partner that truly understands the complexities of healthcare supply chain management.  With one of the strengths lying in the ability to integrate seamlessly into existing systems, offering tailored solutions that drive efficiency, cost savings, and process improvements.  

Success lies within the overall strategy, but Chavez feels that the ability to manage multiple initiatives at the same time is crucial.  “The ability to seamlessly multitask really enables me to drive these diverse projects forward efficiently while serving my internal customers,” she commented.  “Our resilience and adaptability have been key factors in optimizing our operations, allowing us to successfully integrate Inspirity and elevate its impact within Adena Health System.”

McManus appreciates that ability to access specialized expertise and resources, allowing Adena to run multiple initiatives in parallel without overwhelming internal teams. “It’s like having an extension of your own team that’s focused on elevating your supply chain to a more strategic level,” said McManus, “both internally and externally.”