HomeMy WebLinkAbout20191731NCMC Board of Trustees
Regular Session Minutes
Monday, March 25, 2019
12:00 Noon
The Board of Trustees of North Colorado Medical Center met in Regular Session on Monday,
March 25, 2019, in the Richard Stenner Boardroom located at North Colorado Medical Center.
Mark Lawley, Chair, declared a quorum and called the meeting to order at 12:00 p.m.
ATTENDANCE ROSTER
NCMC Board of Trustees: Mark Lawley, Michael Simone, Kevin Mullin, Jason Yeater, Brian
Underwood and Sean Conway (Commissioner, non -voting member), with Catherine Davis
and Kay Kosmicki both Excused
Banner Health: Margo Karsten (NCMC CEO) -Excused, Derek Strader (NCMC COO)
Staff: Jeff Carlson (INC. Board Exec. Dir.)
Recording Clerk: Esther Gesick (Weld County Clerk to the Board)
PUBLIC COMMENT - There was no public comment.
APPROVAL OF MINUTES
It was MSC (Simone/Yeater) to approve the minutes from the February 25, 2019, Regular
Session meeting.
COMMISSIONER'S REPORT
Commissioner Conway reported he planned to leave the meeting early to testify against
HB-181 at a 1:30 hearing before the Finance Committee. He stated the Commissioners are
also in the process of doing a budget analysis, with input from the Director of Finance and
Administration, to gain a sense of the potential financial impacts in the event the Bill passes.
The Commissioners believe there is a lot at risk and have proposed amendments, but the
Senate rejected the revisions along party line votes. He further stated he was discouraged by
talks with Governor Polis last week when their expressed concerns were not received, despite
him being made aware of unintended and long-term consequences on special districts, small
businesses, etc. If passed and signed into law, the Commissioners' next objective will be
endorsement of ballot initiatives to counter the outcome. He stated they are united and
committed to minimize impacts of the legislative actions. (Clerk's Note: Commissioner
Conway was excused from the remainder of the meeting.)
NCM CEO/COO REPORT
Derek Strader reported many of the recent hospital discussions have been related to new
administrative efforts and focus on ways to manage and/or reduce health care costs. The
State has tasked hospitals with demonstrating how and where they will partner and
March 25, 2019 NCMC Board of Trustees
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coordinate with the community and how that is impacted by finances from the State. He
stated there is a positive aspect for NCMC as part of the North Colorado Health Alliance and
its partnership with Sunrise Clinic and the Weld County Department of Public Health and
Environment, which may be utilized as an example of Best Practices for others to follow.
Mr. Strader explained UC Health has a different approach toward Medicaid patients, so there
may be a potential for a balance of Medicare patients and payor mix. He further stated the
focus remains on the metric of Costs per Adjusted Admission, and NCMC is currently ranked
third in the region (down from 11th out of 15). He reported the contract negotiations with
Anthem/ Blue Cross have been extended to the end of March, and the new term would be
effective July 1, 2019, for a new three-year term to include the Banner Fort Collins Medical
Center. He stated this will assist with additional coverage for many patients and feed the
market share of advanced treatments and procedures at NCMC. In response to questions,
he stated there hasn't been much push back concerning surgical referrals being shifted from
Fort Collins to Greeley, as long as the supplemental services are at the local clinics. He
reiterated UC Health must demonstrate they have equal Medicaid access, and he noted the
existing plan to treat Anthem/Blue Cross patients now incorporates the Fort Collins
population.
VISITATION REPORT FOR MARCH 25, 2019
SUPPLY CHAIN: Ethan Donaldson, NOCO Director Interim, and Larry Chenault, Senior
Manager, were present and provided an overview of the supply chain management.
Following the meeting, Mark Lawley submitted a summary of the presentation and related
discussion, a written copy of which is attached as a part of these minutes. Ms. Gesick
prepared and delivered a note of thanks.
VISITATION REPORT FOR APRIL 29, 2019
Catherine Davis and Michael Simone (rotation switched due to schedule conflicts).
NCMC, INc. REPORT
Jeff Carlson explained the quarterly and annual reporting requirements of the Colorado
Finance Authority, S&P, Fitch, Trustees and County. In summary, the 4th Quarter Report
reflected a $19 million investment loss based on market losses. He stated S&P will be
reviewing the credit rating later this summer and will review the loss at that time. Mr. Carlson
explained a separate audit is done for all of Banner, in addition to the specific audits related
to the various facilities. Once those are done, there is also a third audit.
NEW BUSINESS — None.
ADJOURN
There being no further business to come before the Board, it was MSC [Simone/Yeater] to
adjourn the meeting at 1:00 p.m.
Respectfully submitted,
Esther Gesick
Page 2 of 2
March 25, 2019 NCMC Board of Trustees
NCMC TRUSTEE VISITATION
MARCH 2019
Department- NCMC Supply Chain Services
Trustees Report By- Mark Lawley and Kay Kosmicki
Presenters- Larry Chenault and Ethan Donaldson
- Banner health has one of the top ten supply chain systems in
health care
- Services include supply chain, patient transport, laundry and
linen
Statistical Information for Calendar Year 2018
- Manage 60 million in supply expenses annually
- Achieved $1.9 million in savings on a target of $1M
- Provides 24 different areas of service to NCMC
- Has 32 team members
- 17,145 purchase orders
5.7 million items put away and issued
15,000 items handled daily
1.4 million pounds of linen cleaned annually
90 patients transported per day
50 pieces of equipment moved everyday
;I Facility Supply Chain Services
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Top 25 healthcare supply chains in
2018, as ranked by Gartner
Cleveland Clinic came in first, and has been in
the top 10 in the ranking for the past three
years.
Jeff Lagasse, Associate Editor
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ear 4.0
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Gartner has released its 10th annual Healthcare Supply Chain Top ?g
ranking, which recognizes organizations across the healthcare value chain
that demonstrate leadership in improving human life at sustainable costs.
Cleveland Clinic takes a big leap forward and jumps from No. 8 to the top
spot. The organization has been in the top 10 in the ranking for the past three
years, and its continuous efforts to improve and innovate paid off.
Its model is built on collaboration across stakeholders. With a large span of
control for supply chain across most areas of spend, supply chain is woven
into the fabric of patient care, supporting a patient -first focus at the
organization.
In 2018, Cleveland Clinic continued improving its services and employed
RFID technology for high -value medical devices and a less -expensive solution
for commodity products.
IMPACT
Now in the 10th year of the ranking, Gartner introduced a Masters category to
recognize continuous excellence. Cardinal Health, Mayo Foundation,
Intermountain Healthcare and Owens and Minor comprise the initial Masters
class
The Masters category is not a permanent appointment. Organizations must
re -qualify every year and continue to innovate. Cardinal Health, for example,
expanded its digital capabilities and introduced a cloud -based patient
engagement platform called "ConnectSource" to gain better insights into the
patient experience and treatment journey.
viieusnar: Transforming the nealthcare Supply Chain to Reduce Cost and
Improve the Patient experience
Mayo Foundation heavily invested in digital supply chain as a core
differentiator. Intermountain Healthcare had a lot of progress on the einalyu
front of supply chair, by enhancing its ability to visualize key data points such
as supply expense or contract compliance, which allows for better decision
making.
Distributor Owens and Minor has tackled one of the chronic issues for
manufacturers: the visibility of inventory. Through key partnerships, the
company has brought in advanced technology to enhance its strong logistics
and inventory management capabilities.
THE RANKINGS
Cleveland Clinic
CVS Health
Johnson and Johnson
Mercy (Missouri)
McKesson
AmerisourceBergen
Walgreens Boots Alliance
Medtronic
Banner Health
Duke University Health System
Ochsner Health System
BD
Advocate Health Care
Henry Schein
Stryker
Ascension Health
Pfizer
Novo Nordisk
Novartis
Abbott
Bristol-Myers Squibb
GaxoSmithKline
AbVie
Spectrum Health
Providence St. Joseph Health
THE TREND
Most hospital and health system leaders are interested in value -based
contracting when it comes to their supply chains, but a new Premier
shows to lock down contracts with suppliers.
Among 200 C -suite executives and supply chain leaders, 73 percent said their
health systems prioritize value -based contracting when looking to improve
their return on investment.
ON THE RECORD
"Healthcare supply chains today face a multitude of challenges: increasing
cost pressures and patient expectations as well as the need to keep up with
rapid technology advancement, to name just a few," said Stephen Meyer,
senior director at Gartner.
"In order to be successful, supply chains must sport a specific skill set that
consists of patient focus, collaboration and network visibility. The top supply
chains in this year's ranking have embraced those skills and excelled in
executing them."
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