MedicalSurgical Prime Vendor ProgramAll Under One Roof

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Medical/Surgical Prime Vendor ProgramAll Under
One Roof

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Agenda

• Prime Vendor Defined
• Why a Mandatory Prime Vendor Program?
• Prime Vendor Program Overview
• Product Contractor Participation
• Program Benefits to Product Contractors

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Agenda

• Importance of FSS and National Standardization
  to the MSPV Program
• Product Contract Prices
• Prime Vendor/Product Supplier Agreements
• Benefits to Customers Customers Perspective
• Future Program Initiatives
• QA

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Prime Vendor Defined

• Primary Distribution Channel
• Provider of Comprehensive Product Lines
• Shortens Logistics Pipeline
• Partnership

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Why a Mandatory Prime Vendor Program?

• Partial VA Participation
• Redundancy Within VA
• Continued Dependency on NAC for Pricing Support
• Veterans Health Administration Determination

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Prime Vendor Program Overview

• Best-Value, Requirements-Type Contracts
• Product Prices Separate From the Prime Vendor
  Distribution Fee
• Product Prices Established by Federal Government
  Contracts

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Prime Vendor Program Overview

• Five-Year Contracts, If All Options Are Exercised
• Inclusion of Medical/Surgical and Related Items
• Next-Day Deliveries
• Separate Levels of Effort for Conventional and
  Just-In-Time Deliveries

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Prime Vendor Program Overview

• Fill-Rate Requirements
• Delivery F.O.B. Destination
• Net 15 Days Prompt Payment
• Common Use Items
• Pharmaceutical Use
• Med/Surg Use

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Product Contractor Participation

• Participation Determined by FSS Contractors Prior
  to FSS Contract Award
• Non-Participating Contractors May be Included
  After Award
• FSS Contract Modification Required
• Participation is Prime Vendor Program Specific
• All VA Facilities Given Equal Access to All
  Participating Product Suppliers
• Non-Participation by Product Contractors Affects
  Customer Product Availability

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Program Benefits to Product Contractors

• Consolidates Shipping Locations
• Reduces Invoice Receivables Processes
• Reduces Customer Service Support
• Market Exposure

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Importance of FSS and National Standardization to
the MSPV Program

• MSPV Program Dependant on FSS and National
  Standardization For Pricing Information
• FSS Program Offers Choice of Products
• Sales Under the Prime Vendor Program For FSS and
  BPA Products Considered FSS Sales

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Product Contract Prices

• Prime Vendors Invoice Medical Centers at the
  Federal Government Prices From
• FSS Contracts
• National Standardization
• VISN and Medical Center Contracts
• Product Contract Prices
• Pricing Data Electronically Pulled For FSS and
  National Standardization Contracts Participating
  (as Product Suppliers) in the MSPV Program

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Product Contract Prices

• Availability of Pricing Information to Prime
  Vendors, Medical Centers, FSS and National
  Standardization Contractors
• Prices Provided Electronically on the 1st and the
  15th of Each Month
• Authoritative Source for Product Prices
• VA MSPV Database
• www.va.gov/vastorenac

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Product Contract Prices

• Product Price Accuracy and Timely Price Changes
  Critical to the MSPV Program
• Prompt and Accurate Pricing Actions Reduce Price
  Discrepancies for Medical Centers

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Prime Vendor/Product Supplier Agreements

• Prime Vendor/Product Supplier Agreements
• Payment Terms
• Liability Insurance Requirements
• MSPV Program Requires No More Than 1,000,000
  (Except for High-Risk Items)
• Delivery Requirements
• Tracing Fees

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Benefits to Customers Customers Perspective

• VISN 23 - MSPV Program Customer
• VA Midwest Healthcare Network
• Facilities in Five States Minnesota, Iowa,
  Nebraska, South Dakota, and North Dakota
• Serve Veterans in Eight States
• Eight Medical Centers/Health Care Systems 12
  Campuses
• 36 Community-Based Outpatient Clinics
• 262,164 Enrolled Patients Treated
• 2,268,717 Outpatient Visits

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Benefits To Customers Customers Perspective
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Benefits To Customers Customers Perspective

• Services Provided by VISN 23 Facilities
• Primary Care
• Specialty Care
• Outpatient Care
• Nursing Home Care
• Home Health Care
• Mental Health Care
• Six Medical School Affiliations Minnesota,
  Nebraska, Iowa, North Dakota, South Dakota,
  Creighton

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Benefits To Customers Customers Perspective

• All VISN 23 Facilities Are Participants in the
  MSPV Program as of April 2005
• Two Campuses Use Just-In-Time Service Level
• 10 Campuses Use Conventional Service Level
• Number of Orders Placed Per Campus Under the MSPV
  Program Range From One/Week to Five/Week
• Number of Deliveries Per Week Range From One/Week
  to Five/Week

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Benefits To Customers Customers Perspective

• CORE Items Were Identified By Each Facility Prior
  to the Start of the Contract
• CORE Item Lists for Facilities Range From 34 to
  Over 500 Items
• CORE Item Lists Change New Items Added, Items
  Deleted
• MSPV Contractor Provides Assistance With
  Identifying VA Standardized Items and Other
  Contract Items

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Benefits To Customers Customers Perspective

• ORDERING PROCESS
• Ordering is Done Through EDI Process/Prime
  Vendors Web-Based Ordering System
• Reduced Number of Orders Placed
• Typical 30 Orders Per Week vs. Three Orders Per
  Week
• Order From One Vendor for CORE Items Rather Than
  From Multiple Vendors
• Order in Smaller Quantities - CORE items are
  Available in Both Case Quantities and Low Unit of
  Measure

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Benefits To Customers Customers Perspective

• INVENTORY MANAGEMENT
• Next Day Delivery
• Reduction in Stock on Hand
• Reduction in Inventory Value
• Increased Inventory Turns
• Less Storage Space Required for Med/Surg Items
• Reduction in Inventory Frees Up Inventory Space
  For Use By Other Items, Such as Surgery Items

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Benefits To Customers Customers Perspective

• Inventory Management
• Several Facilities Have Been Able to Eliminate or
  Reduce Med/Surg Items From Warehouse Inventory
  and Other Hospital Inventory Areas Reduces
  Handling
• One Facility Has Been Able to Eliminate Its
  Warehouse Space Located Off-Site

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Benefits To Customers Customers Perspective

• Receiving Process
• Streamlined - Only One Order to Process Rather
  Than Multiple Orders for CORE Items
• All Items Are Delivered in One Order Reduces
  Staggered Deliveries
• Items Only Need to be Handled Once When Delivered
  Direct to SPD Areas
• Billing
• Fewer Invoices to Process

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Benefits To Customers Customers Perspective

• Employee Satisfaction
• All Employees Involved in the Process Are Very
  Satisfied With the MSPV Program
• Inventory Managers
• Materiels Handlers
• Logistics Managers
• Logistics Customers
• Seamless for Our Customers

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Benefits To Customers Customers Perspective

• Customer Service
• VAMC Employees Pleased With Customer Service
  Provided by the MSPV Contractor
• The MSPV Contractor Responsive to VA Needs
• Fill-Rate Ranges From 96 100
• Comprehensive Reports Provided Monthly
• The MSPV Program Continues to Meet Our
  Expectations

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Pending Program Initiatives

• Program Expansion to Other Government Agencies
• Use of Non-Prime Vendor Numbers for Order
  Placement and Other Prime Vendor Functions

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Medical/Surgical Prime Vendor Program

• QA
• Point of Contact
• Maria A. Ramirez, MSPV Program Manager
  and Contracting Officer
• [phone]
• [phone] (fax)
• Maria.ramirez_at_med.va.gov
• Tim Richards, Contract Specialist
• [phone]
• [phone] (fax)
• Timothy.richards_at_med.va.gov
• Copy of Presentation will be made available after
  5 p.m.,
• October 4 at www.va.gov/vastorenac