CENTRAL OHIO HOSPITALS
SUPPLIER DIVERSITY
INITIATIVE
CONTENTS
Who We Are
Overview of Our Work, Shared Goals
Diversity Basics
Supplier Diversity at
Mount Carmel Health System
Nationwide Children’s Hospital
OhioHealth
OSU Wexner Medical Center
Questions and Answers
WHO WE ARE
Members of the Central Ohio Hospital
Council are the 4 hospital systems in
Franklin County.
Those systems operate 12 inpatient
hospitals in Franklin County, hospitals
outside of Franklin County, as well as
free-standing emergency departments,
outpatient and primary care facilities,
surgery centers, home care, medical
equipment and hospice care
throughout central Ohio.
COHC BOARD OF DIRECTORS
Dave Blom,
OhioHealth
Steve Allen,
Nationwide Children’s
Claus Von Zychlin,
Mount Carmel
Steve Gabbe,
Wexner Medical
Center
COHC MISSION
The Central Ohio Hospital Council serves as the
forum for community hospitals to come together
to address issues that impact the delivery of
health care to central Ohioans. Through the COHC,
member hospitals collaborate with each other and
with other community stakeholders to improve the
quality, value and accessibility of health care in
the central Ohio region.
WHO WE ARE: MOUNT CARMEL HEALTH SYSTEM
Mount Carmel is a Catholic system of four central Ohio hospitals — Mount Carmel East, Mount Carmel West, Mount Carmel
St. Ann’s and Mount Carmel New Albany — as well as a free-standing emergency department, surgery centers, outpatient
facilities, physician offices and community outreach sites.
Staff: 8,000 Associates and 1,500 on-staff
Physicians
Volunteers: 1,000
Staffed Beds: 2,000
Visits and Admissions: 655,000 outpatients,
62,700 admissions, 218,483 emergency
room visits
Births: 7,900
WHO WE ARE: NATIONWIDE CHILDREN’S
Nationwide Children’s Hospital is one of the country’s largest not-for-profit freestanding pediatric health care
networks, including a pediatric research institute and 68 facilities extending out across Ohio.
Staff: 10,000 Associates and 1,000 on-staff
Physicians
Volunteers: 900
Staffed Beds: 541
Visits and Admissions: 1,000,000 outpatients, 18,000
admissions, 84,000 emergency room visits
Surgeries: 27,000
WHO WE ARE: OHIOHEALTH
OhioHealth is a not-for-profit, faith-based family of healthcare providers, including eight member hospitals, 11 managed
and affiliated hospitals, more than 20 health and surgery centers, home care providers, medical equipment suppliers and
hospice care throughout a 40-county area.
Staff: 17,000 Associates and 2,800 on-staff
Physicians
Volunteers: 3,000
Staffed Beds: 2,000
Visits and Admissions: 2 million outpatients,
95,000 admissions, 346,000 emergency
room visits
Surgeries: 60,000
Births: 13,000
WHO WE ARE: OSU WEXNER MEDICAL CENTER
The Ohio State University Wexner Medical Center is one of the largest academic medical centers in the country,
and includes six signature programs: Cancer, Critical Care, Heart, Imaging, Neurosciences and Transplantation.
Staff: 18,000 Associates and 2,000 on-staff
Physicians
Volunteers: 1,800
Staffed Beds: 1,188 (1,300 after expansion)
Visits and Admissions: 1,485,147 outpatients,
56,592 admissions, 118,280 emergency
room visits
Surgeries: 38,627
Births: 4,482
OUR WORK, SHARED GOALS
Central Ohio hospitals strive to achieve the following goals :
• Build business relationships with qualified diverse suppliers that positively
impact patient care, community relations and social economics;
• Build and support processes so that DBEs may compete on a fair and open
field;
• Identify and remove obstacles to market entry, customer access, and
financial growth of DBE companies;
• Collaborate with community partners and suppliers who support our
commitment to supplier diversity;
• Increase purchases of goods and services from DBEs, when fiscally
responsible and operationally compatible.
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DIVERSITY BASICS
Recognized diversity classifications
Minority Business Enterprises (MBE): A business that is at least 51% owned
and controlled by minority persons. Minority is defined as a U.S. citizen which is
African-American, Hispanic American, Native American, Asian-Pacific or Asian Indian Americans.
– Women Business Enterprises: A business that is at least 51% owned and
controlled by a woman.
– Small or Disadvantaged Business Enterprise: A business that is socially and
economically disadvantaged or under-utilized.
– Disabled Veteran or Handicapped Owned Business: Those businesses owned by
individuals with physical challenges or owned by disabled veterans.
–
DIVERSITY BASICS
Accepted certifications
–
–
–
–
–
City, state, or federal agency
Regional or National minority council
Small Business Administration
National Women Businesses Corporation
Women’s Business Enterprise Council
DIVERSITY BASICS
Memberships
Ohio Minority Supplier Development Council
– VHA Supplier Diversity Advisory Group
– National Minority Supplier Development Council
–
PROGRAM OBJECTIVE
HealthTrust strives to maximize savings opportunities for its members
through a comprehensive portfolio of contracts and other service
offerings. In doing so, HealthTrust recognizes that having a diverse
supplier base promotes competition, builds strong communities,
drives creativity and creates opportunities.
HealthTrust is committed to providing minority, women and service
disabled veteran owned enterprises (MWSDVE) an equal
opportunity to compete for and earn contracts for the goods and
services our members purchase.
PROGRAM OBJECTIVE
HealthTrust strives to maximize savings opportunities for its members
through a comprehensive portfolio of contracts and other service
offerings. In doing so, HealthTrust recognizes that having a diverse
supplier base promotes competition, builds strong communities, drives
creativity and creates opportunities.
HealthTrust is committed to providing minority, women and service
disabled veteran owned enterprises (MWSDVE) an equal opportunity to
compete for and earn contracts for the goods and services our members
purchase.
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BACKGROUND
HealthTrust Supplier Diversity Program has been in existence since the
organization was launched in 1999. Over the years, the spend with
diverse businesses have grown from $23 million to over $170 million in
2013.
Diverse companies matching a business need are routinely included in the
competitive bid process. The portfolio of diverse contracts have grown
from a handful when the program started to roughly 104 by the end of
2013.
As of 2013, there are 62 diverse suppliers on contract.
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MWSDVE CERTIFICATION
HealthTrust’s Supplier Diversity Program consist of minority, women and service
disabled veteran owned enterprises (MWSDVE).
A company must be certified as a legal entity, organized to engage in commercial
transactions and be 51 percent owned, controlled and operated by one or more
minority, woman or serviced disabled veteran individuals.
Certifications from the following national organizations are recognized by
HealthTrust:
• Minority Business - The National Minority Supplier Development Council (NMSDC) or one of its
regional affiliates
 Minorities as a separate class consist of Black Americans, Hispanic Americans, American Indians and Asian
Americans (i.e. Pacific Islanders, Eskimos, Aleuts, etc.).
• Woman Business - Women’s Business Enterprise National Council (WBENC)
• Serviced Disabled Veteran Business - Service Disabled Veteran Owned Small Business (SDVOSB)
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GOALS
Identify MWSDVEs opportunities to participate in upcoming HealthTrust contracting
categories (i.e. medical devices, drugs, equipment, etc)
Assist in fostering relationships between MWSDVEBEs and HealthTrust
membership
Strive to enhance the participation of MWSDVEs within the HealthTrust contracting
process to facilitate their economic development.
Address obstacles to full participation of MWSDVEs in the HealthTrust contracting
process
Educate and empower MWSDVEs to ensure their full involvement in the HealthTrust
contracting process
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HEALTHTRUST DIVERSITY PROGRAM CONTACT
INFORMATION
For additional information about the Diversity Program please contact
Darrel Mogilles AVP Diversity Program:
[email protected]
Janet McCain Director Diversity Program: [email protected]
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SUPPLIER DIVERSITY AT NATIONWIDE
CHILDREN’S
Nationwide Children’s Hospital embraces inclusion as a way
of doing business.
We view diversity as a strength and believe that developing
a diverse supplier base will provide for higher quality
services to our hospital.
Developing mutually beneficial relationships with a broad
base of suppliers builds economic vitality in our
community.
We seek to expand business relationships with diverse,
local and environmentally conscious suppliers
SUPPLY CHAIN CONTRACTING
Buyers & Contract Administrators
 Sourcing supplies, services and equipment
 Ensuring fair and open access to Nationwide Children’s Hospital
Business opportunities
 Serving as a resource for current and prospective suppliers
 Coordinating the bid process
 Negotiating terms and conditions
 Providing the best overall value for the hospital
 Facilitating disputes and resolving service and invoicing issues
 Monitoring supplier performance levels
 Conducting business reviews
PROCUREMENT PROFILE
Contracting – Supplies, Services & Equipment
 Novation / Children’s Hospital Association (CHA)
 CHA Independent Aggregation
 Amerinet (Secondary GPO)
 Local Agreements - negotiated and managed through Supply Chain or
other responsible departments
Logistics / Distribution
 Cardinal Health - Primary
 Medline and Owens & Minor – Secondary
 Direct Shipping
MEASURING GROWTH
Increase the spend with Diverse Suppliers
MEASURING GROWTH
Increase the number of relationships with Diverse Suppliers
GETTING STARTED
Get registered with Nationwide Children’s - register on our Web site at
www.NationwideChildrens.org. Find the ‘About Us’ link, click ‘overview’,
scroll to ‘Diversity and Inclusion’, click, then complete ‘Supplier
Inclusion Application’. Registration is fast and simple and it’s your
portal to opportunities with us.
Do your homework - The size and scope of Nationwide Children’s can be
daunting. To best meet your needs, we encourage you to spend time
researching how your company and services can best meet the needs
of the hospital
Connect with the Contracting team - Contact the Supply Chain Operations
department at (614) 722-4800 or email us at
[email protected]
2014 CONTRACTING
OPPORTUNITIES
Supply Chain Opportunities
•
•
•
•
•
•
•
•
•
•
•
Catering for Main Hospital
Dairy Products
Phototherapy
Janitorial Distribution
Minor procedure trays
Lancets
Outside form printing bid
Dental Distribution
Offsite Landscape and Snow Removal
Coffee Services for offsite and Main Campus
Reference Lab Bid
Facilities Opportunities
• Furniture
• Fixtures
• General Medical Equipment
IT Opportunities
Project Managers
ETL Developers
Value Added
Reseller
KEY SUCCESS FACTORS
Get Certified
Register at www.NationwideChildrens.org.
Be flexible and responsive
Consider partnering with other firms
Be as innovative as possible
Do your homework
Determine your overall value proposition
Build relationships with the Contracting team
OHIOHEALTH BUYING MODEL
GPO Relationships
 Contracts with vendors on our behalf, offers consulting, incentive programs, data
analytics
 Primary: Novation/VHA
 Secondary: Amerinet
 Regional buying group: Midwest Purchasing Coalition (MWPC)
 Premier Health Partners (Dayton), Community Health Network (Indianapolis)
Distribution Relationships (drug & supply)
 Distributor stocks and sells product at the lowest unit of measure while
administering pricing
 Most non-Physician Preference Items (PPI) move through this channel
 Primary: Cardinal Health
 Secondary: Seneca
OHIOHEALTH BUYING MODEL
Basic Contracting types
 GPO
 Custom GPO Agreements
 GPO Enhancements
 Local
Logistics
 Distribution
 Direct
Purchased Services
 Various contracting strategies
 Various delivery strategies aligned with infrastructure
VENDOR CREDENTIALING
Central Ohio Hospital Council for Community Standards
Potential Vendor Registration: Medzo
 Credentialing completed
 Accessed by hospitals throughout the country
 Used by OhioHealth for sourcing
Current Vendor Registration: VendorMate




Required for access
Fee based on access/risk
Policy agreement, vaccination documentation
Credentialing completed
SUPPLIER DIVERSITY INTEGRATION
Measure
 Measure both first and second tier spend
 Number of participating suppliers
 Overall inclusive bid events
Train
 Organizational engagement
Outreach
 South Central Ohio Minority Supplier Development Council (SCOMSDC)
 VHA Supplier Diversity Advisory Group (SDAG)
 National Minority Supplier Diversity Council (NMSDC)
 WBENC (Women’s Business Enterprise National Council)
SUPPLIER DIVERSITY: MEASURES
Year-over-year increases in diversity spend
 Pipeline Plan
 $25M by FY16
Purchase service and drug & supply spend measured separately from
construction tower build
First and second tier both measured but target spend is combined (given
nature of distribution model, all tiers considered equal)
Number of diverse suppliers measured, but not targeted for growth (targeting
deep, collaborative relationships, not more relationships)
Bid inclusion targets restricted to purchase service area
SUPPLIER DIVERSITY: OUTREACH
Ohio Minority Supplier Development Council
 Board representation
 Ohio Business Opportunity Fair
 Matchmaker
 Educational opportunities
VHA Supplier Diversity Advisory Group
 Matchmaker events
 Vendor fairs
Central Ohio Hospital Council
NEXT STEPS
• Get registered!
– login.medzo.com
• Novation/VHA Supplier Diversity
– Register online at www.novationco.com/supplierdiversity
– [email protected]
• Cardinal Health Supplier Diversity
– Register online at www.cardinalhealth.com/supplierdiversity
– [email protected]
• OhioHealth Supplier Diversity
– Jamie Yolles, Director, Strategic Sourcing
– [email protected]
MBE/EDGE BACKGROUND

MBE (Minority Business Enterprise):
 Business Owners(s) must be members of one or more groups: African American, Native American, Hispanic, or Asian/Pacific Islander
 Business must be at least 51 percent owned and controlled by persons from the above groups
 Owner(s) of the business must be Ohio resident(s)
 Business must be a for-profit operation and must have been founded at least one year prior to applying to the MBE program

EDGE (Encouraging Diversity, Growth, and Equity):
 Assistance program for economically and socially disadvantaged business enterprises
 Socially disadvantaged individuals have at least one objective distinguishing feature that has inhibited business success: Race,
Ethnic Origin, Gender, or Physical/Mental Disability
 Personal net worth of owners(s) : <$250,000 at program entry ; <$750,000 during program participation
 Owner(s) of the business must be Ohio resident(s)
MBE/EDGE GOALS

MBE -- Ohio Revised Code (ORC 125.081):
 The State of Ohio Department of Administrative Services is required by law to make purchases with minority business
enterprises that equals approximately fifteen percent (15%) of total value of all purchases in the current fiscal year.

EDGE – Ohio Revised Code (ORC 123.152):
 The State of Ohio Department of Administrative Services shall establish agency procurement goals for contracting with
EDGE business enterprises. EDGE participation goals will be based on contractor availability and will be set initially at
approximately five percent (5%) of eligible annual direct expenditures.
 Provision of this code allows universities to establish procurement goals for contracting with EDGE business enterprises.

Ohio State University – MBE/EDGE Goal:
 The university has a goal consistent with the state's requirement to purchase fifteen percent of its goods and services
from certified minority vendors (MBEs) and five percent (5%) from certified EDGE suppliers.
NEXT STEPS – HOW TO ENGAGE
Get Registered
 http://discovery.ariba.com/supplier
 Select “Register Now”
 Complete Company Profile
Supplier Diversity Contact
 David Andres, Contract Manager
 [email protected]
QUESTION & ANSWERS
What more can we share so that you
are successful in working with the
Franklin County hospital systems?
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