Major Canadian Health Care Organizations Establish Supply Chain Value Creation Council

The health care procurement landscape has been evolving, with an increased focus on creating value across the supply chain. The COVID-19 pandemic highlighted significant voids in the sector and the need for a disciplined approach to data and information sharing to build supply chain resiliency. Organizations that relied on and were guided by data during the pandemic were better able to support frontline health care workers.  

Driven by the gaps and opportunities illuminated by the pandemic, Mohawk Medbuy (MMC) and the Canadian leadership of numerous health care vendors have been meeting over the past year to discuss and collaborate – ultimately forming the Supply Chain Value Creation Council to focus on three areas: 

  • Supply Chain: Strengthening the contract process through data and information sharing

  • Sustainability: Developing strategies to minimize the impact of future disruptions

  • Outcomes: Optimizing patient-centric aspects of the supply chain to support better health outcomes

Levers that health care vendors and MMC can utilize to positively impact patient outcomes include advanced analytics, process efficiency, safety standards and automation. Achieving value creation across the supply chain will require the elevation of best practices by leveraging data throughout the contract lifecycle. 

An early identified opportunity, Supply Chain Disruption, involves taking an engaged approach to aligning shared priorities amongst vendors and MMC to mitigate future product shortages. Mohawk Medbuy’s MitigAID™, the leading health care product disruption management program, is utilized by hundreds of hospitals across the country as a key resource. MitigAID oversees more than 600,000 medical / surgical and pharmaceutical products, providing MMC Members and government bodies with vital information about disruptions, potential substitute items and automated reimbursements for the incremental cost of buying alternate products. 

The Supply Chain Value Creation Council has identified three optimal practices to take the MitigAID program to the next level: 

  1. Sharing related data before the RFP process, so that final contracts are based on actual awards by vendor

  2. Sharing yearly compliance and usage reports so vendors and providers can recalibrate based on initial commitments and expectations

  3. Focusing on product safety attributes and points of origin to build in necessary resilience through the contract lifecycle

The council, which is co-chaired by Tony DiEmanuele, MMC’s President & CEO and Mike Canzoneri, President & CEO of Canadian Hospital Specialties, is actively working together to ensure health care supply chain resiliency and sustainability.