Supply Management Action Team

There is a group of people at LMHS working hard to save money for the System. The Supply Management Action Team, or SMAT, was created to standardize all products within LMHS facilities and negotiate contracts with vendors.

“SMAT was started in October 2007, but we really started seeing savings in 2008,” says Connie Neff, RN, Clinical Resource Manager Supply Chain Management. “We saved $1.3 million for the past fiscal year ending in September, and our current savings since inception is now more than $1.762 million.”

SMAT was the model in place at Southwest Florida Regional Medical Center and Gulf Coast Hospital when they were owned by HCA. LMHS adopted the model and tweaked it.

The SMAT consists of a “main” team that includes clinical operations team leaders, nursing, physicians, Supply Chain leaders, Finance, the Operations Improvement Team, Education and Infection Control. There are also four counsels which meet monthly. The counsels are Clinical Care, Women’s and Children’s, Surgical Services and Vascular Access.

If Cooperative Services has the opportunity to make a change in a contract for System products, the SMAT looks at it and discusses the potential for change during a meeting. The councils then review the products and make recommendations.

One example of collaboration is skin staplers. The team saw an opportunity to consolidate down to one brand of stapler. The surgical counsel took the challenge. “Sometimes they over exceed my expectations,” Connie says.

Items that have been changed include everything from baby powder and allergy bands to surgical clippers.

These are incremental savings. Every time the new product is used, we count that savings. For example, every time a new razor is used, we count the savings of 10 cents. This can add up to big money.

During the inception of SMAT, the goal was set to save $1.2 million by the end of fiscal year 2009. As mentioned above, the end of 2009 fiscal year saw a significant achievement toward that original goal.

“Most people want to be involved,” Connie says. “We all collaborate, and it’s really good.”

SMAT Received National Recognition

A recent issue of Healthcare Purchasing News featured the LMHS SMAT teams and process changes.

Click here to read the article, "Redefining value analysis practices for a healthcare reform-minded industry."

Click here to read the article, "The hits and misses of value analysis."