The Healthcare Supply Chain Talent Gap

1. The Healthcare Supply Chain Talent Gap How Leaders Can Deal with Looming Crisis February 22, 2019 Andy Brailo, Senior Vice President

2. CQO: the definition The CQO Movement looks at the intersection of, and the relationship between: Cost: all costs associated with caring for individuals and communities Quality: care aimed at achieving the best possible health Outcomes: financial results driven by exceptional patient outcomes CQO: The Healthcare Supply Chain How does your presentation relate to CQO? Please select from the definitions for Cost, Quality, and Outcomes (CQO) below:

3. Learning Outcomes • Identify critical burdens health systems face in hiring next generation of healthcare supply chain leaders. • Understand how one health system has tackled the challenge of fostering supply chain talent. • Learn how to build a business case for investment in supply chain personnel and implement a structure that stimulates growth and retention • Assess strategies and best practices from various industries that can be used to ensure top talent can be developed, recruited and retained.

4. Our People – Our Greatest Asset “People are definitely a company's greatest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps.” - Mary Kay Ash “A company’s employees are its greatest asset and your people are your product.” - Richard Branson “The delicate balance of mentoring someone is not creating them in your own image, but giving them the opportunity to create themselves.” - Steven Spielberg “I’ve learned a lot from mentors who were instrumental in shaping me, and I want to share what I’ve learned.” - Herbie Hancock

5. Jefferson University Hospitals • Philadelphia, PA • Jefferson University Hospitals and Thomas Jefferson University are partners in providing excellent clinical and compassionate care for our patients in the Philadelphia region, educating the health professionals of tomorrow in a variety of disciplines and discovering new knowledge that will define the future of clinical care. • We are 30,000+ people reimagining health care, education and discovery. We are many things, but every day all of us are dedicated to one thing: Improving lives. • Jefferson continues to top the list of hospitals in Pennsylvania (3rd) and the Philadelphia metro area (2nd) in U.S. News & World Report's annual listing of the best hospitals and specialties. • Fiscal Year ending June 30, 2017 • Licensed Beds: 937 • Admissions: 41,368 • Outpatient Visits: 1,350,317 • Emergency Room Visits: 117,746 • Employees: 9,500 (full and part-time) • House Staff: 873 • Medical Staff: 1,667* • Registered Nurses (full and part-time): 3,265 • *Includes other professional personnel including psychologist, podiatrists, NPs, PAs, CRNAs, etc. • HOSPITALS • Abington Hospital • Abington - Lansdale Hospital • Jefferson Bucks Hospital • Jefferson Cherry Hill Hospital • Jefferson Frankford Hospital • Jefferson Methodist Hospital • Jefferson Stratford Hospital • Jefferson Torresdale Hospital • Jefferson Washington Township Hospital • Jefferson Hospital for Neuroscience • Magee Rehabilitation Hospital • Physicians Care Surgical Hospital • Rothman Orthopaedic Specialty Hospital – Bensalem • Thomas Jefferson University Hospital OUTPATIENT CENTERS Abington Jefferson Health – Blue Bell Abington Jefferson Health – Elkins Park Abington Jefferson Health – Lower Gwynedd Abington Jefferson Health – Montgomeryville Abington Jefferson Health – Warminster Abington Jefferson Health – Willow Grove Jefferson Health — Fairless Hills Jefferson Health — Roosevelt Boulevard Jefferson Health — Bustleton Jefferson at Bala Cynwyd (225 East City Avenue) Jefferson at Bala Cynwyd (401 City Line Avenue) Jefferson Health – Art Museum Jefferson Health – Burlington Jefferson Health – Navy Yard Jefferson Health – Smylie Times Jefferson Health – Turnersville Jefferson Health – Voorhees Jefferson Surgery Center – Blue Bell Magee Rehabilitation – Oxford Valley Magee Rehabilitation – Riverfront Magee Rehabilitation – Watermark Sidney Kimmel Cancer Center at Abington – Jefferson Health Asplundh Cancer Pavilion URGENT CARE CENTERS Jefferson Urgent Care – Bensalem Jefferson Urgent Care – Flourtown Jefferson Urgent Care – Grant Avenue Jefferson Urgent Care – Rittenhouse Jefferson Urgent Care – Smylie Times Jefferson Urgent Care – Washington Square Jefferson Urgent Care – Willow Grove

6. Jefferson University Hospitals • Christopher Fontana, • Director Contract Management Supply Chain Management

7. Guide to Talent Acquisition & Retention • Organizational Alignment (Getting “Buy-in” from Sr. Leadership) • Use case studies to educate leadership • Demonstrate an ROI • Emphasize benefits in the following areas: • Talent Management • Structural optimization • Functional optimization • Navigate the HR & Compensation process

8. Making the Case Industry Trends • Benefit: $5-7M annual savings and cost avoidance. • Costs: • FTE’s • 12 > 17 FTE’s • Operating Expenses • $0.85M > $1.35M = Net $0.5M • Year 1: Additional $0.25M in recruitment and severance costs • Year 1: +$3M - $0.5M - $0.25M = $2.25M • Ongoing: +$5M - $0.5M = $4.5M / Year Visualization 8:1 ROI

9. Structural Optimization Current State: Sourcing Operations Proposed: Strategic Sourcing • Stakeholder Engagement • Supplier Relationship Management Procurement Operations Order Fulfillment and Payment

10. Function Optimization Career Progression

11. Navigating the Human Resource Process • Challenges: • “Niche” function • Comparator groups likely not progressive • Area of Focus: • Engage early • Use benchmarks and market data • Look beyond healthcare Market Data Support Higher Grading According to market data summarized below, we are not market-competitive. • Notes: • Source: Institute for Supply Chain Management (ISM) 2014 Salary Survey • Salaries above do not include bonuses or LTI’s; standard fro many procurement roles, which can increase compensation by 10-50%

12. Focusing on Team Development Hours of Training per Employee Source: “2017 Training Industry Report”. Nov/Dec 2017. www.trainingmagazine.com

13. Focusing on Development Projected Funding for Learning Areas Next Year Source: “2017 Training Industry Report”. Nov/Dec 2017. www.trainingmagazine.com

14. Mentoring and Coaching “To be successful in any field, aspiring leaders require role models and guidance. This is especially true in healthcare as an increasing number of its managers opt for work outside of the traditional healthcare setting or leave to start careers in different fields.” Source: “The Benefits of Being a Mentor”. American College of Healthcare Executives • Enhance your skills • Develop and retain talent within your organization • Create a legacy

15. Developing a Curriculum • Critical Assessment • Professional Guidance • Curriculum Development • Cadence and Commitment • Ongoing Assessment Technical Skills Soft Skills vs.

16. Sources of Mentorship • Within your organization. • Prior colleagues. • Collaboratives. • Professional Coaches • Professional organizations. • Group Purchasing Organizations

17. Mentor Match Mentor Match Available only to AHRMM members, the Mentor Match provides a tool for healthcare supply chain professionals to connect with more experienced professionals in the field. Whether to help with career planning, discuss a particularly challenging issue, learn from previous experience, or simply to find an encouraging role model, engaging with a mentor can markedly improve an individual’s work life and career. To use the Mentor Match, visit AHRMM Connect and complete a mentor or mentee profile. Once you have enrolled as a mentor or mentee, you will be able to use the Mentor Match tool to search for others who may be a good fit for you to mentor or be mentored by. Once the mentor relationship is established, the two participants are responsible for discussing goals and expectations for the mentorship. To serve as a mentor or mentee, join AHRMM today!

18. Thank You