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! .EW $IRECTION
0ATIENT !DVOCACY AND "EST IN #LASS 3PECIALTY #ARE IN (EALTH #ARE 0URCHASING
4H IS NEW DIRECTION TAKES TH E BUSINESS MODEL TH AT COMPANIES USE TO PARTNER WITH H IGH PERFORMANCE SUPPLIERS AND APPLIES IT TO TH E WAY EMPLOYERS PURCH ASE H EALTH CARE
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). &%"25!29 4(% -)..%3/4! #)4):%.3 &ORUM ON (EALTH #ARE #OSTS APPOINTED BY 'OVERNOR 0AWLENTY AND LED BY FORMER 5 3 3ENATOR $AVID $URENBERGER ISSUED ITS lNAL REPORT 0ART OF THAT REPORT RECOMMENDED THAT A BROAD ALLIANCE OF PUR CHASERS BOTH PUBLIC AND PRIVATE WORK TOGETHER TO INCREASE HEALTH CARE QUALITY AND EFlCIENCY USING INNOVATIVE BUT EFFECTIVE PURCHASING STRATEGIES 4O THAT END -INNESOTA 'OVERNOR 4IM 0AWLENTY ANNOUNCED IN .OVEMBER THAT AN ALLIANCE OF HEALTH CARE PURCHASERS HAS BEEN FORMED TO PROVIDE THEIR COLLECTIVE WEIGHT PERCENT OF THE -IN NESOTA POPULATION BEHIND A NEW APPROACH TO PURCHASING HEALTH CARE 4HE h3MART "UYv !LLIANCE ANNOUNCED BY THE 'OVERNOR INCLUDES THE 3TATE OF -INNESOTA AS %MPLOYER AND THEIR -EDICAL !SSISTANCE 0ROGRAM THE ,ABOR -ANAGEMENT (EALTH #ARE #OALITION OF THE 5PPER -IDWEST ,-# THE "UYERS (EALTH #ARE !CTION 'ROUP THE -INNESOTA "USI NESS 0ARTNERSHIP -INNESOTA #HAMBER OF #OMMERCE AND !DVOCATES FOR -ARKETPLACE /PTIONS FOR -AINSTREET INCLUDES RURAL PURCHASING ALLIANCES /NE OF THE !LLIANCE S FOUR PRIORITIES FOR HEALTH CARE REFORM INCLUDES THE RECOMMENDATION THAT hHEALTH CARE PURCHAS ERS DEMAND THAT CARE PROVIDERS MEET SPECIlC STANDARDS OF CARE AND CONTRACT ONLY WITH THOSE THAT DEMONSTRATE BEST IN CLASS PERFORMANCE v 4HIS NEW DIRECTION TAKES THE BUSINESS MODEL THAT COMPANIES USE TO PARTNER WITH HIGH PERFORMANCE SUPPLIERS AND APPLIES IT TO THE WAY EMPLOYERS PURCHASE HEALTH CARE ! 0ARADIGM #HANGE
4HE TIME IS RIGHT TO EMBRACE A DIFFERENT MORE EFFECTIVE BUSINESS MODEL FOR PURCHASING HEALTH CARE 3EE COMPARISON CHART ON PAGE #ONTINUING DOUBLE DIGIT HEALTH CARE COSTS THAT THREATEN COMPANY PROlTABILITY JOBS WAGES AND GOOD LABOR RELATIONS CANNOT AND SHOULD NOT BE TOLERATED ! NEW BUSINESS MODEL FOR PURCHASING HEALTH CARE IS A STEP IN THE RIGHT DIRECTION 4ODAY MOST MANUFACTURERS AND OTHER BUSINESSES USE A COMMON PROCESS TO IDENTIFY AND SELECT HIGH PERFORMANCE SUPPLIERS BASED ON QUALITY AND VALUE 4HEY DO NOT DO BUSI NESS WITH EVERY SUPPLIER IN THE YELLOW PAGES 3UPPLY CHAIN MANAGEMENT AND PROCUREMENT EVOLVED OVER RECENT DECADES AS AN EFFECTIVE BUSINESS PROCESS FOR BOTH PURCHASERS AND SUPPLIERS )N THE QUALITY ARENA BUSINESSES HAVE FOUND THAT EVOLVING FROM INSPECTION BASED PROCESSES TO PERFORMANCE SPECIlCATIONS WHICH EMBODY CAPABLE PROCESSES THAT CONSISTENTLY ARE IN CONTROL ENSURES THAT THE END PRODUCT OR SERVICE WILL BE DEFECT FREE 7HEN DEFECT FREE SERVICES AND PRODUCTS ARE DELIVERED ALL PARTIES IN THE SUPPLY CHAIN BENElT 4HE PRODUCT OR SERVICE MEETS REQUIREMENTS IT DOESN T HAVE TO BE RE WORKED ETC AND COSTS ARE FAR LESS "9 3%!. +%..%9 0H $
.OVEMBER $ECEMBER
-ETRO$OCTORS 4HE *OURNAL OF THE (ENNEPIN AND 2AMSEY -EDICAL 3OCIETIES