Tidewater Story Sept2010 Rev
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Tidewater GPO provides group purchasing services for senior care providers to improve financial health through savings on supplies and services. It has contracts with major vendors like McKesson, US Foods, and Select Rehab that offer savings on items like medical supplies, food, and therapy. Tidewater representatives provide consultative services to help members maximize savings and value from purchasing programs.
Tidewater Story Sept2010 Rev
- 1. Tidewater GPO The Next Generation of Spend Management Services “ Focused on the Health of your Business”
- 2. Our Mission Tidewater’s mission is to improve the overall financial health of our Members. We will accomplish this by changing the very nature of how GPO’s are accessed in Senior Care. With an emphasis on member profitability, we will focus our efforts on improved savings and revenue generation programs, close member and vendor relationships and training and development of our employees. www.tidewatergpo.com
- 3. Who is VHA? A network of more than 1,400 not-for-profit hospitals and more than 28,000 non-acute health care organizations. VHA does not own any of the health care organizations. Rather, as a cooperative, VHA is owned by its member organizations. The majority owner of Novation, the industry’s largest supply contracting company Includes approximately 27% of the nation's most prominent and respected providers in the nation. Who is NOVATION? The industry’s leading Health Care contract services company. Founded in 1998, Novation provides members with best-in-class pricing on the industry’s most comprehensive contract portfolio. Members used Novation contracts to purchase $35.6 billion in supplies and services in 2007. Tidewater Group Purchasing powered by VHA/Novation
- 4. Tidewater is building solutions to address the greatest concerns of many Senior Care providers Staffing shortages, turnover and employee satisfaction 47% of LTC RN’s will retire in the next 10 years There are 96,000 open nursing positions in US Overall staff turnover is >50% per year Regulatory challenges 5 out of 10 citations from State or Feds are related to incontinence Reimbursement Medicare likely to see decreases this year Many states Medicaid DSO now 80+ days Census drop in Assisted Living Cost reductions necessary to ride out census drops Must maximize and leverage existing purchasing agreements Credit Availability Tightest markets ever. Vendors are getting delayed payments Litigation Abuse, neglect, wrongful death suits are up
- 5. What are the 5 most expensive Spend Management mistakes being made by providers today? Not standardizing purchases to 1 or 2 selected vendors Lost opportunities in aggregation and compliance incentives Too many vendors to manage Not understanding how to tap into contract incentives Increases overall (actual) costs Not using supplier’s knowledge or programs to help reduce workman’s compensation, survey or litigation costs Increases risk, and expense Sacrificing quality, care or resources in the name of “cost” Increases risk, and expense “ Cherry picking” GPO’s programs Chaotic purchasing requirements Poor incentive realization Massive workload for facility administrators
- 6. A small sampling of our contract portfolio
- 7. Program Highlight: Dietary, Dining and Food Service Multiple distributors, both regional and national gives you options Menu programs that meet all State, Medicare and Medicaid nutritional requirements-now also available on-line ServSafe training offered on-line Valuable manufacturer deals for both SNF and AL menus Tidewater can manage your manufacturer deals Savings are “net” and reflected on invoices “ A large scale portfolio of suppliers and professionally designed menu programs combine to offer exceptional variety and value”
- 8. Program Highlights: New Tidewater US Food Program US Food Service program first to roll out under new agreement: Stay Tuned More to follow Up to a10% savings on price comparison 1% cost savings on Drop Size incentives 1% cost savings on early payment options 4% cost savings through standardization Tidewater and VHA/Novation have entered into an agreement that would give Tidewater Group Purchasing the ability to represent VHA/Novation and its contracts in the Senior Care Market
- 9. Dietary Spend Management Services {Groups} Contract Price Verifications: Ensure that all contracts, products and pricing are loaded correctly Review distributor prices for contracted item accuracy Monthly DSSI price audit reports (Proactive and reactive) Distributor Site Audits Top 100 spend audit Formulary Management/Spend Analysis: ID top spend by distributor operation Usage summary versus Tidewater recommended brands Top 100 coverage report Id’s gaps Incentives reports Standardization: ID top product mix and narrow down to Tidewater deals Purchasing habit summary Identify compliance level capabilities based upon distributor Distributor Stocking status
- 10. Program Highlight : Medical Supplies - McKesson Access a breadth of quality products McKesson Brand Well known Brands like SCA, Abbott and Sage Can identify savings opportunities and administrative efficiencies Inventory Management Ordering technologies Full line provider Medical and nursing supplies Furniture and window treatments Linens Equipment Revenue generating opportunities “ Balancing cost-control with safety and quality of care, McKesson can provide the innovative technology and supply solutions you need . ”
- 11. Program Highlight : Contract Therapy - Select We’ve negotiated excellent payment terms! Partner Hospitals Nationwide Dedicated program management 6 or 7 day Therapy available Strong recruitment Capture part A & part B services Denials Management and Indemnification Census Development Comprehensive audit tools and management reports “ A Full Service provider of Physical, Occupational and Speech Therapy”
- 12. Program Highlight : PEO/HRO - AlphaStaff Free up time, resources and cash flow Decrease liability and legal exposure Unemployment claims management Offload complex multistate, Federal and State compliance issues Reduce the cost of turnover Minimize lawsuits in the workplace Can work with union or non-union facilities “ AlphaStaff provides cost savings through consolidation in the areas of Benefits, Payroll, HR and Worker’s Comp
- 13. Why are Vendor Relations Important? At Tidewater, we focus much of our time working with vendors to bring value to you. As a result, you will see… Product and Service selections that offer choice, but not so many that it dilutes price/service offering Better engagement with members who best qualify for the vendor’s offering Stronger relationships with our vendors, which enable us to act as a liaison when necessary Tidewater members are often first to see new, cutting edge products and services
- 14. Platinum Program™ Rewards member for long term relationship, committed volume and use of multiple vendor programs: Minimum one year agreement Minimum organizational spend of $1MM (single facility) $2MM (groups) annually Minimum 80% program participation Must affiliate to an anchor vendor and minimum of 3 additional vendors Awards of up to 1% of purchases Rewards for loyalty!
- 15. Field Service: Tidewater GPO’s unique, value-added, consultative approach helps get the most out of purchase dollars Our Account Executives average 15-20 years experience in Health & Senior Care and understand how to get the most out of what Tidewater provides Routine training to enhance our AE’s knowledge of products, services and trends in the Senior care marketplace Our Nationwide* coverage maximizes your service needs Our local industry experts are in your area and at your service *Some states no local coverage
- 16. The Omnicare Family of Companies Tidewater Group Purchasing is proud to be part of the Omnicare LTC Group of companies. Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing and assisted living . Accu-Med is the largest provider of software and related services to long term care. Omnicare is traded on the NYSE under the symbol OCR .