SUPPLY CONTINUITY
BY DANIEL BEAIRD
Adapting to Meet Changing Needs The largest health system in Indiana now requires predictive supply health metrics and reporting.
Indiana University (IU) Health is the largest network of physicians and hospi-
strategy outside the U.S.,” said Dennis
tals in the state of Indiana. The system includes a unique partnership with the IU
Mullins, senior vice president of supply
School of Medicine, giving patients access to one of the nation’s leading medical
chain for IU Health. “This allows us to
schools, to leading-edge medicine and treatment options. While COVID-19 response con-
properly forecast our supply ordering
tinues to consume significant healthcare resources and require heightened precautions, IU
and have confidence in the reliability of
Health saw increases in surgical cases and outpatient care in the first quarter of 2021.
our suppliers to manage their end-to-end supply chain process from raw material to the product delivery to our hospitals.” In addition, IU Health increased its knowledge base regarding how overseas manufacturing plays a vital role in how the U.S. supply chain operates to include the logistical complexities of ships, shipping ports and customs operations. “Prior to the pandemic, we maintained a 60-day safety stock of PPE for all acute locations at our Integrated Service Center, which consolidates and handles inventory for our 16-hospital system,” Mullins said. “Now, we are positioned to maintain 120 days of PPE safety stock.” IU Health’s supply planning approach before the pandemic was based
IU Health Integrated Service Center
on historical usage. “But pandemic planning required more of a future forecast where we were required to look at the
“Over the past year IU Health has
continued resilience to manage opera-
COVID-19 positive population at a
adapted to meet changing healthcare
tions and finances while making new in-
global level, and it could impact the U.S.
needs amid unprecedented challenges
vestments to serve patients who depend
and IU Health,” Mullins said.
posed by the global pandemic,” said
on us, especially in these critical times.”
Jenni Alvey, senior vice president and
“Due to COVID-19, IU Health now
IU Health entered into several supply assurance programs with distributors
chief financial officer for IU Health.
reviews manufacturer and distributor
and manufacturers. These programs
“We expect the rest of 2021 will require
throughput to include their sourcing
were designed to stabilize and sustain
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August 2021 | The Journal of Healthcare Contracting
