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Supplier Informational Session

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Remind us what makes The Resource Group different…

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▪ The Resource Group GPO is the first wholly-owned healthcare GPO permitted by the Office of the Inspector General (OIG).

▪ In order to provide the highest value to the organization and reduce variation in contract terms, conditions and pricing across over 2,400 locations, all contracts are developed within The Resource Group GPO structure.

– All supply categories (medical, surgical, pharmacy, laboratory, administrative, etc.) – All equipment categories (medical, facilities, service, etc.) – All purchased services categories (FNS/EVS, waste, storage, consulting, auditing etc.) – All information technology categories (software, hardware, services, consulting, etc.) – All facilities related categories (Planning, Design and Construction)

▪ Supplier benefits of this strategy may include: – One vendor file, contract file and item file governance structure – One purchase order generating and payment location for issue resolution – Growth of business through increase in The Resource Group GPO Participants – Reduction in supplier SG&A costs through coordinated contract implementation

In March 2012, Ascension announced the formation of a wholly-owned GPO after receiving a favorable opinion from the Office of the Inspector General

Group Purchasing Organization Overview

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User-Directed Strategic Sourcing™ Solutions and Solution Support

USER-DIRECTED STRATEGIC SOURCING™

SOLUTION SUPPORT

Solutions Management

Office Contract Design

& Sourcing Operations

and Logistics

Change Management

Measurement/ Audit

Analytics Purchased Services

Integration Participant Integration

SOLUTIONS

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The Resource Group integrates locally while connecting nationally through seven Communities of Expertise and four Communities of Collaboration.

Integrating Resources Enables Value

Chief Resource Officer

O Analyst

System Office Associate

Operations Leader

Implementation Specialist

Critical Products Manager

Customer Care Associate

Data Steward

Area Leadership

Communities of Collaboration: • Clinical Sponsors

• Executive Sponsors

• Decision Teams

• Affinity Groups

Communities of Expertise:

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▪ Listen to the appropriate Decision Teams, Affinity Groups, and suppliers to understand the need or issue

▪ Capture key attributes of the products, services and suppliers ▪ Cross-reference products, services and suppliers based on key

attributes ▪ Carry forward the recommendation(s) for action to and through the

sourcing and implementation processes ▪ Review SupplierIntro.org submissions

Contract Design listens to the end-users and works with suppliers and stakeholders to develop the attributes of the products and agreements for sourcing and implementation processes

Listen First Contract Design

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▪ The Sourcing Team will engage the Supplier through several RFx type processes to include: – Traditional direct negotiations and contracting – Combination events utilizing traditional and/or eSourcing platform

support

Sourcing acts as an agent on behalf of our Participants to deliver increased value, mitigate risk and develop a contractual framework that captures their requirements. This process supports accelerated implementation and increased value realization

Contract Second Sourcing and Supplier Management

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▪ The Resource Group will manage implementation process through our Solution Management Office.

▪ The Solution Management Office determines the most appropriate use of national and local Implementation Specialists, Critical Product Managers, and Operations Leaders.

– An implementation and work plan is developed for each contract – Any onsite supplier support or training sessions required will be scheduled and managed – Will coordinate all necessary channel information

▪ Symplr (Formerly Vendor Credentialing Service) – www.vcsdatabase.com – Symplr is a web-based third-party credentialing and compliance provider – Provides various levels of credentialing depending on location of service – Allows Participants to manage all supplier appointments

The Resource Group engages end-users throughout our processes to deliver value in a manner that is driven by their needs to support rapid deployment, embed changes, and ensure realization of total value

Implement Always Implementation and Field Operations

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Tell us what you have done…

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Accomplishments and Progress Update

▪ Symphony/PeopleSoft ERP Deployment ▪ Bringing in St. John (Tulsa, OK), Via Christi (Wichita, KS) and

Ministry Health (Wisconsin) ▪ MedAssets Contract Conversions ▪ Non-Ascension Participant Growth

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In order to maintain the integrity of our internal controls, products and services must be purchased through a Purchase Order

Purchasing Controls “No PO/No Pay”

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Contract Compliance “No Contract/No Pay”

For the safety and security of our patients, associates, physicians, and clinicians, we will not purchase products without a contract For the safety and security of our patients, associates, physicians, and clinicians, we will not purchase products and services without a contract

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New Ascension Health Ministries

St. John Health System Via Christi Health Ministry Health

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▪ The Resource Group is expected to complete a total of 1,200 contract conversions from MedAssets to The Resource Group by July 2015.

▪ The Resource Group has expanded its contracting scope to include: – All supply categories (medical, surgical, pharmacy, laboratory, administrative, etc.) – All equipment categories (medical, facilities, service, etc.) – All purchased services categories (FNS/EVS, waste, storage, consulting, auditing etc.) – All information technology categories (software, hardware, services, consulting, etc.) – All facilities related categories (Planning, Design and Construction)

The Resource Group is reviewing and converting from the MedAssets contract portfolio.

The Resource Group Update MedAssets Conversions

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We now provide The Resource Group model to 13 external, non-Ascension participants.

The Resource Group External Participants

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Tell us how we can be a better supplier to you and/or how we can navigate your processes to earn more business…

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SupplierIntro.org

The SupplierIntro.org Portal is the required first point of contact for suppliers interested in developing a relationship with The Resource Group or any current supplier wishing to add new products or services to the portfolio.

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▪ SupplierIntro.org allows us to retain focus on major initiatives and areas of impact.

▪ Upon submission, the information will be processed by The Resource Group and provided to Decision Teams and Specialty Affinity Groups for consideration.

▪ The Resource Group will contact vendors if there is interest in their product or service.

▪ Customer Care cannot complete the forms or provide upload assistance.

▪ Any website malfunctions should be submitted to Customer Care at TheResourceGroup@Ascension.org

The SupplierIntro.org Portal is the required first point of contact for suppliers interested in developing a relationship with The Resource Group or any current supplier wishing to add new products or services to the portfolio

SupplierIntro.org

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▪ In order to cleanse and reconcile data, The Resource Group is engaging suppliers through an Online Registry of the supplies and services purchased by Participants.

▪ The Online Registry allows new vendors to provide their information in a side-by-side, line-item cross reference to currently purchased products. Cost reductions greater than 20% are prioritized for review.

▪ Current suppliers can analyze the listing for products that they could potentially replace and offer the cross reference.

The Online Registry was crafted for both The Resource Group and suppliers’ benefit

Online Registry

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▪ This Online Registry is an electronic file that contains the following line item information: – Ascension Health PeopleSoft Item Number – Company name as maintained in the PeopleSoft Vendor File – Company catalog/item number as maintained in the PeopleSoft Item

File – Item description as maintained in the PeopleSoft Item File – Ordering Unit of Measure data as maintained in the PeopleSoft Item File

▪ Please note that neither quantities of purchases nor pricing are

provided in this file.

The Online Registry allows suppliers to proactively identify opportunities to bring value to our Participants

Online Registry

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Supplier Informational Session