Population Health Purchasing: MindClick Presents case study at Wharton Initiative for Global Environmental Leadership
In collaboration with Edward-Elmhurst Health, Premier Inc., Johnson & Johnson, and Steelcase, MindClick presented a case study at the Wharton Initiative for Global Environmental Leadership (IGEL) Conference, December 16, 2015, demonstrating the need for and benefit of the Healthcare Sustainable Purchasing Index (HCSP Index), a cloud-based solution to support supply chain sustainability for the healthcare industry.
The healthcare industry, representing 18% of U.S. GDP, spends over $200 billion annually purchasing medical and non-medical products, many of which are the same products purchased for our homes, businesses and communities. The material choices, production practices, distribution systems, packaging, use, and disposal of these products are both direct contributors to and are directly impacted by climate change.
Historical approaches to collecting supplier data on health and environmental impacts are inefficient, ineffective and expensive. Requests for Environmentally Preferable Purchasing information from suppliers is costing the industry an estimated $25 million to collect data that providers can’t effectively access or utilize.
The case study demonstrates how MindClick’s HCSP Index will help improve population health and the environmental impact of the healthcare industry by providing the business intelligence providers need to make fully informed purchasing choices.
MindClick’s HCSP Index overcomes the time, expense, inaccuracy, and lack of transparency inherent in the current approach to product sustainability data collection and reporting. As the case study illustrates, creating an industry-wide dashboard across categories drives more educated purchasing decisions, improves efficiency, reduces costs, and supports manufacturer innovation.
Based on supplier reported sustainability attributes, a review of Edward-Elmhurst Health’s $1.5 million in purchasing across three product categories (endotracheal tubes, furniture and sutures) revealed 50% of the purchasing volume is associated with products that positively contribute to human and environmental health. However, for the remaining 50%, the link to carcinogens, endocrine disruptors, asthma and other chronic diseases is both possible and unknown. The case study demonstrates the benefits to providers, GPOs and suppliers achieved through actionable item level sustainability information.
-Edward-Elmhurst Health has a baseline of their purchasing impacts and knowledge of better performing products to drive improvement.
-Premier can provide valuable analysis to support member interest in purchasing products with a positive environmental and health impact story, and demonstrate additional value for health systems to purchase from Premier contracts.
-Steelcase and Johnson & Johnson can promote the benefits of their products, obtain valuable knowledge as to how they perform relative to competitors, and gain insight into the volume of purchasing tied to sustainability performance.
Collaboration between providers, suppliers and GPOs combined with a robust technology platform delivers a scalable, cost-effective solution and helps improve the health and environment of the populations we serve.