CENTRAL OHIO HOSPITALSSUPPLIER DIVERSITY INITIATIVE

CONTENTS

Who We Are

Overview of Our Work, Shared Goals

Diversity Basics

Supplier Diversity at

Mount Carmel Health System

Nationwide Children’s Hospital

OhioHealth

OSU Wexner Medical Center

Questions and Answers

WHO W

E ARE

CENTRAL O

HIO H

OSPITA

L COUNCIL

WHO WE ARE

Members of the Central Ohio Hospital Council are the 4 hospital systems in Franklin County.

Those systems operate 12 inpatient hospitals in Franklin County, hospitals outside of Franklin County, as well as free-standing emergency departments, outpatient and primary care facilities, surgery centers, home care, medical equipment and hospice care throughout central Ohio.

COHC BOARD OF DIRECTORSCOHC BOARD OF DIRECTORS

Dave Blom, OhioHealth

Claus Von Zychlin, Mount Carmel

Steve Allen, Nationwide Children’s

Steve Gabbe, Wexner Medical Center

COHC MISSIONCOHC MISSION

The Central Ohio Hospital Council serves as the forum for community hospitals to come together to address issues that impact the delivery of health care to central Ohioans.

Through the COHC, member hospitals collaborate with each other and with other

community stakeholders to improve the quality, value and accessibility of health

care in the central Ohio region.

WHO WE ARE: MOUNT CARMEL HEALTH SYSTEM

Staff: 8,000 Associates and 1,500 on-staff Physicians

Volunteers: 1,000

Staffed Beds: 2,000

Visits and Admissions: 655,000 outpatients, 62,700 admissions, 218,483 emergency room visits

Births: 7,900

Mount Carmel is a Catholic system of four central Ohio hospitals — Mount Carmel East, Mount Carmel West, Mount Carmel St. Ann’s and Mount Carmel New Albany — as well as a free-standing emergency department, surgery centers, outpatient facilities, physician offices and community outreach sites.

WHO WE ARE: NATIONWIDE CHILDREN’S

Staff: 10,000 Associates and 1,000 on-staff Physicians

Volunteers: 900

Staffed Beds: 541

Visits and Admissions: 1,000,000 outpatients, 18,000 admissions, 84,000 emergency room visits

Surgeries: 27,000

Nationwide Children’s Hospital is one of the country’s largest not-for-profit freestanding pediatric health care networks, including a pediatric research institute and 68 facilities extending out across Ohio.

WHO WE ARE: OHIOHEALTH

Staff: 17,000 Associates and 2,800 on-staff Physicians

Volunteers: 3,000

Staffed Beds: 2,000

Visits and Admissions: 2 million outpatients, 95,000 admissions, 346,000 emergency room visits

Surgeries: 60,000

Births: 13,000

OhioHealth is a not-for-profit, faith-based family of healthcare providers, including eight member hospitals, 11 managed and affiliated hospitals, more than 20 health and surgery centers, home care providers, medical equipment suppliers and hospice care throughout a 40-county area.

WHO WE ARE: OSU WEXNER MEDICAL CENTER

Staff: 18,000 Associates and 2,000 on-staff Physicians

Volunteers: 1,800

Staffed Beds: 1,188 (1,300 after expansion)

Visits and Admissions: 1,485,147 outpatients, 56,592 admissions, 118,280 emergency room visits

Surgeries: 38,627

Births: 4,482

The Ohio State University Wexner Medical Center is one of the largest academic medical centers in the country, and includes six signature programs: Cancer, Critical Care, Heart, Imaging, Neurosciences and Transplantation.

Central Ohio hospitals strive to achieve the following goals :• Build business relationships with qualified diverse suppliers that

positively impact patient care, community relations and social economics;

• Build and support processes so that DBEs may compete on a fair and open field;

• Identify and remove obstacles to market entry, customer access, and financial growth of DBE companies;

• Collaborate with community partners and suppliers who support our commitment to supplier diversity;

• Increase purchases of goods and services from DBEs, when fiscally responsible and operationally compatible.

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OUR WORK, SHARED GOALS

DIVERSITY BASICS

Recognized diversity classifications – Minority Business Enterprises (MBE): A business that is at

least 51% owned and controlled by minority persons. Minority is defined as a U.S. citizen which is African-American, Hispanic American, Native American, Asian-Pacific or Asian - Indian Americans.

– Women Business Enterprises: A business that is at least 51% owned and controlled by a woman.

– Small or Disadvantaged Business Enterprise: A business that is socially and economically disadvantaged or under-utilized.

– Disabled Veteran or Handicapped Owned Business: Those businesses owned by individuals with physical challenges or owned by disabled veterans.

DIVERSITY BASICS

Accepted certifications– City, state, or federal agency– Regional or National minority council– Small Business Administration– National Women Businesses Corporation– Women’s Business Enterprise Council

DIVERSITY BASICS

Memberships – Ohio Minority Supplier Development Council – VHA Supplier Diversity Advisory Group– National Minority Supplier Development Council

MOUNT CARMEL

PROGRAM OBJECTIVE

HealthTrust strives to maximize savings opportunities for its members through a comprehensive portfolio of contracts and other service offerings. In doing so, HealthTrust recognizes that having a diverse supplier base promotes competition, builds strong communities, drives creativity and creates opportunities.

HealthTrust is committed to providing minority, women and service disabled veteran owned enterprises (MWSDVE) an equal opportunity to compete for and earn contracts for the goods and services our members purchase.

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PROGRAM OBJECTIVE

HealthTrust strives to maximize savings opportunities for its members through a comprehensive portfolio of contracts and other service offerings. In doing so, HealthTrust recognizes that having a diverse supplier base promotes competition, builds strong communities, drives creativity and creates opportunities.

HealthTrust is committed to providing minority, women and service disabled veteran owned enterprises (MWSDVE) an equal opportunity to compete for and earn contracts for the goods and services our members purchase.

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BACKGROUND

HealthTrust Supplier Diversity Program has been in existence since the organization was launched in 1999. Over the years, the spend with diverse businesses have grown from $23 million to over $170 million in 2013.

Diverse companies matching a business need are routinely included in the competitive bid process. The portfolio of diverse contracts have grown from a handful when the program started to roughly 104 by the end of 2013.

As of 2013, there are 62 diverse suppliers on contract.

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MWSDVE CERTIFICATIONHealthTrust’s Supplier Diversity Program consist of minority,

women and service disabled veteran owned enterprises (MWSDVE).

A company must be certified as a legal entity, organized to engage in commercial transactions and be 51 percent owned, controlled and operated by one or more minority, woman or serviced disabled veteran individuals.

Certifications from the following national organizations are recognized by HealthTrust:

• Minority Business - The National Minority Supplier Development Council (NMSDC) or one of its regional affiliates

Minorities as a separate class consist of Black Americans, Hispanic Americans, American Indians and Asian Americans (i.e. Pacific Islanders, Eskimos, Aleuts, etc.).

• Woman Business - Women’s Business Enterprise National Council (WBENC)

• Serviced Disabled Veteran Business - Service Disabled Veteran Owned Small Business (SDVOSB)

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GOALS

Identify MWSDVEs opportunities to participate in upcoming HealthTrust contracting categories (i.e. medical devices, drugs, equipment, etc)

Assist in fostering relationships between MWSDVEBEs and HealthTrust membership

Strive to enhance the participation of MWSDVEs within the HealthTrust contracting process to facilitate their economic development.

Address obstacles to full participation of MWSDVEs in the HealthTrust contracting process

Educate and empower MWSDVEs to ensure their full involvement in the HealthTrust contracting process

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HEALTHTRUST DIVERSITY PROGRAM CONTACT INFORMATION

For additional information about the Diversity Program please contact

Darrel Mogilles AVP Diversity Program: Darrel.Mogilles@healthtrustpg.com

Janet McCain Director Diversity Program: Janet.McCain@HealthTrustPG.com

NATIO

NWID

E CHILD

REN’S

SUPPLIER DIVERSITY AT NATIONWIDE CHILDREN’S

Nationwide Children’s Hospital embraces inclusion as a way of doing business.

We view diversity as a strength and believe that developing a diverse supplier base will provide for higher quality services to our hospital.

Developing mutually beneficial relationships with a broad base of suppliers builds economic vitality in our community.

We seek to expand business relationships with diverse, local and environmentally conscious suppliers

SUPPLY CHAIN CONTRACTINGBuyers & Contract Administrators Sourcing supplies, services and equipment Ensuring fair and open access to Nationwide Children’s

Hospital Business opportunities Serving as a resource for current and prospective suppliers Coordinating the bid process Negotiating terms and conditions Providing the best overall value for the hospital Facilitating disputes and resolving service and invoicing

issues Monitoring supplier performance levels Conducting business reviews

PROCUREMENT PROFILE Contracting – Supplies, Services & Equipment Novation / Children’s Hospital Association (CHA) CHA Independent Aggregation Amerinet (Secondary GPO) Local Agreements - negotiated and managed through Supply

Chain or other responsible departments

Logistics / Distribution Cardinal Health - Primary Medline and Owens & Minor – Secondary Direct Shipping

MEASURING GROWTHIncrease the spend with Diverse Suppliers

MEASURING GROWTHIncrease the number of relationships with Diverse Suppliers

GETTING STARTED

Get registered with Nationwide Children’s - register on our Web site at www.NationwideChildrens.org. Find the ‘About Us’ link, click ‘overview’, scroll to ‘Diversity and Inclusion’, click, then complete ‘Supplier Inclusion Application’. Registration is fast and simple and it’s your portal to opportunities with us.

Do your homework - The size and scope of Nationwide Children’s can be daunting. To best meet your needs, we encourage you to spend time researching how your company and services can best meet the needs of the hospital

Connect with the Contracting team - Contact the Supply Chain Operations department at (614) 722-4800 or email us at Inclusion@NationwideChildrens.org

2014 CONTRACTING OPPORTUNITIES

IT OpportunitiesProject ManagersETL DevelopersValue Added Reseller

Supply Chain Opportunities•Catering for Main Hospital•Dairy Products•Phototherapy•Janitorial Distribution•Minor procedure trays•Lancets•Outside form printing bid•Dental Distribution•Offsite Landscape and Snow Removal•Coffee Services for offsite and Main Campus•Reference Lab Bid

Facilities Opportunities•Furniture•Fixtures •General Medical Equipment

KEY SUCCESS FACTORSGet Certified

Register at www.NationwideChildrens.org.

Be flexible and responsive

Consider partnering with other firms

Be as innovative as possible

Do your homework

Determine your overall value proposition

Build relationships with the Contracting team

OHIOHEALT

H

OHIOHEALTH BUYING MODEL

GPO Relationships Contracts with vendors on our behalf, offers consulting, incentive

programs, data analytics Primary: Novation/VHA Secondary: Amerinet Regional buying group: Midwest Purchasing Coalition (MWPC)

Premier Health Partners (Dayton), Community Health Network (Indianapolis)

Distribution Relationships (drug & supply) Distributor stocks and sells product at the lowest unit of measure

while administering pricing Most non-Physician Preference Items (PPI) move through this

channel Primary: Cardinal Health Secondary: Seneca

OHIOHEALTH BUYING MODEL

Basic Contracting types GPO Custom GPO Agreements GPO Enhancements Local

Logistics Distribution Direct

Purchased Services Various contracting strategies Various delivery strategies aligned with infrastructure

VENDOR CREDENTIALING

Central Ohio Hospital Council for Community Standards

Potential Vendor Registration: Medzo Credentialing completed Accessed by hospitals throughout the country Used by OhioHealth for sourcing

Current Vendor Registration: VendorMate Required for access Fee based on access/risk Policy agreement, vaccination documentation Credentialing completed

SUPPLIER DIVERSITY INTEGRATION

Measure Measure both first and second tier spend Number of participating suppliers Overall inclusive bid events

Train Organizational engagement

Outreach South Central Ohio Minority Supplier Development Council

(SCOMSDC) VHA Supplier Diversity Advisory Group (SDAG)

National Minority Supplier Diversity Council (NMSDC) WBENC (Women’s Business Enterprise National Council)

SUPPLIER DIVERSITY: MEASURES

Year-over-year increases in diversity spend Pipeline Plan $25M by FY16

Purchase service and drug & supply spend measured separately from construction tower build

First and second tier both measured but target spend is combined (given nature of distribution model, all tiers considered equal)

Number of diverse suppliers measured, but not targeted for growth (targeting deep, collaborative relationships, not more relationships)

Bid inclusion targets restricted to purchase service area

SUPPLIER DIVERSITY: OUTREACH

Ohio Minority Supplier Development Council

Board representationOhio Business Opportunity FairMatchmakerEducational opportunities

VHA Supplier Diversity Advisory GroupMatchmaker eventsVendor fairs

Central Ohio Hospital Council

NEXT STEPS

• Get registered!– login.medzo.com

• Novation/VHA Supplier Diversity– Register online at

www.novationco.com/supplierdiversity – supplierdiversity@novationco.com

• Cardinal Health Supplier Diversity– Register online at

www.cardinalhealth.com/supplierdiversity– supplierdiversity@cardinalhealth.com

• OhioHealth Supplier Diversity– Jamie Yolles, Director, Strategic Sourcing – Jamie.Yolles@ohiohealth.com

OSU WEXNER M

EDICAL

CENTER

MBE/EDGE BACKGROUND

MBE (Minority Business Enterprise):

Business Owners(s) must be members of one or more groups: African American, Native American, Hispanic, or Asian/Pacific Islander

Business must be at least 51 percent owned and controlled by persons from the above groups

Owner(s) of the business must be Ohio resident(s)

Business must be a for-profit operation and must have been founded at least one year prior to applying to the MBE program

EDGE (Encouraging Diversity, Growth, and Equity):

Assistance program for economically and socially disadvantaged business enterprises

Socially disadvantaged individuals have at least one objective distinguishing feature that has inhibited business success: Race, Ethnic Origin, Gender, or Physical/Mental Disability

Personal net worth of owners(s) : <$250,000 at program entry ; <$750,000 during program participation

Owner(s) of the business must be Ohio resident(s)

MBE/EDGE GOALS

MBE -- Ohio Revised Code (ORC 125.081):

The State of Ohio Department of Administrative Services is required by law to make purchases with minority business enterprises that equals approximately fifteen percent (15%) of total value of all purchases in the current fiscal year.

EDGE – Ohio Revised Code (ORC 123.152):

The State of Ohio Department of Administrative Services shall establish agency procurement goals for contracting with EDGE business enterprises. EDGE participation goals will be based on contractor availability and will be set initially at approximately five percent (5%) of eligible annual direct expenditures.

Provision of this code allows universities to establish procurement goals for contracting with EDGE business enterprises.

Ohio State University – MBE/EDGE Goal:

The university has a goal consistent with the state's requirement to purchase fifteen percent of its goods and services from certified minority vendors (MBEs) and five percent (5%) from certified EDGE suppliers.

NEXT STEPS – HOW TO ENGAGE

Get Registered http://discovery.ariba.com/supplier Select “Register Now” Complete Company Profile

Supplier Diversity Contact David Andres, Contract Manager David.andres@osumc.edu

QUESTION & ANSWERS

What more can we share so that you are successful in working with the Franklin County hospital systems?