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With tremendous cost pressures within the U.S. health care system, healthcare providers are looking at different ways to save money. For many medical devices and services, there are submerged costs that are not always reflected in the purchase price and may not be considered during purchasing decisions. Beyond acquisition, these costs include use, maintenance, and end of life (or use) costs, such as waste disposal. These costs may not be included in supply chain considerations yet may influence total costs to health care. Some of these costs may significantly impact human health and the environment.

By focusing on price as opposed to total cost of ownership (TCO) for medical devices, health care systems may pay more for products over time and negatively impact their sustainability initiatives. We will present a TCO framework developed in a collaborative approach to reduce the total cost of delivering quality health care.

Learning Objectives

  • Demonstrate how a collaborative approach to problem solving can be beneficial for suppliers, GPOs, and healthcare systems.
  • List and define key cost drivers included in a functional TCO model for medical products.
  • Correlate the use of TCO with fulfillment of environmental impact goals for health care organizations.
  • State the business case for including a TCO evaluation into the purchasing process for medical products.

Vanessa Lochner, Director of Environmentally Preferable Purchasing (EPP), Kaiser Permanente (KP)

Vanessa Lochner is the Director of Environmentally Preferable Purchasing at Kasier Permanente. She is responsible for providing strategic direction, and the operations management of the EPP program. In this key role, Vanessa works with Kaiser Permanente’s Finance Operations organization in collaboration with its Group Purchasing Organization (GPO), to identify enterprise-wide EPP opportunities linked to improving the environment for its workforce and members. Vanessa participates as a member of KP’s Environmental Stewardship Working Group, and serves as the co-chair to KP’s Safer Chemicals Subcommittee.

Vanessa has led the evolution of Kaiser Permanente’s EPP program success story metric to high impact metrics in the key areas of Cleaner Energy, Safer Chemicals, Less Waste, and Healthier Food – driving down Kaiser Permanente’s impact on the environment. Recently published, Vanessa authored an educational article together with blog post on Kaiser Permanente’s success in rethinking its EPP program. Spending more than 14 years in the healthcare field, Vanessa’s experience spans facilities development, business continuity, capital procurement, business process reengineering and transformational business management.

Erol Odabasi, Director of Sustainability, Johnson & Johnson

Erol Odabasi is the Director of Sustainability for Johnson & Johnson’s Medical Device & Diagnostics sector where he has leadership responsibility for the global sustainability strategy in alignment with Johnson & Johnson's Healthy Future 2015 Goals. In this role, his mission is to enable improved customer, employee, community & business health by delivering responsible and accessible products and services for today and tomorrow.

Beth Eckl, Director of Environmental Purchasing Program, Practice Greenhealth

Beth Eckl is the Director of the Environmental Purchasing Program for Practice Greenhealth providing technical support, consulting services and training on environmental purchasing for health systems, healthcare facilities and group purchasing organizations. Beth oversees the development of technical, environmental criteria for dozens of medical and non-medical products used in hospitals. She is also responsible for the EPP Specifications Guide for Health Care, the first and only source for health care supply chain professionals. Beth brings more than 15 years of experience in waste management and environmental purchasing to guide members successfully through all the steps in developing and implementing environmental purchasing to fill a critical part of their journey to sustainable health care.

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