Supply chain management in healthcare has evolved from straightforward purchasing into a profession where cost, quality, and safety intersect to form a complicated framework of responsibilities. As the healthcare industry has grown, so too has the area of responsibility for the supply chain manager, and vendor compliance management has become crucial to keep healthcare organizations secure.
In partnership with their compliance peers, supply chain leaders who have overlooked putting a process in place to effectively check vendors and their products for safety and security not only put their jobs on the line, but they also risk the reputation, safety, and financial security of the entire organization. It’s important for supply chain leaders to do their due diligence and implement best practices for vendor compliance management to avoid exposing themselves and their healthcare organizations to unnecessary risk.
Supply chain management encompasses cost-containment, quality, and patient safety; all can be impacted with comprehensive vendor credentialing.
Supply chain leaders are responsible for all vendor and supplier relationships and contracts, including the oversight of representatives that make in-person visits to see staff and work on systems. Vendor insight is essential, but there was a time when vendors would simply ‘drop-in’ to talk about a new drug or the latest supplies, but for most facilities, those times are gone for good reason. Access management for vendors and other visitors improves the safety of the community and reduces risk of noncompliance and reputational damage.
Why are supply chain experts more involved than ever?
The challenges surrounding vendor compliance are complex, requiring that all hands are on deck to help mitigate risk.
- Security and compliance of facilities
Over time, hospitals have grown increasingly liable for the safety of their patients, staff, and visitors. In the past, it was not uncommon for vendors and suppliers to literally wander the halls of a facility. Now, with heightened regulatory oversight along with regular Joint Commission surveys every 18-36 months to evaluate compliance, it is essential to know who is in the hospital at any given time. Just how essential? In addition to the safety risks, for many healthcare organizations, the financial liability and consequences for non-compliance are just too high (up to $10,000 per item or service in violation), and the possible repercussions to a health system’s reputation could impact the public’s perception for years to come. Managing facility access for every individual at every point of entry is critical line of defense to meet auditing body standards and mitigate risks of theft, unauthorized physical access, and violence. Learn more about ensuring vendor compliance during a Joint Commission survey. - Increased cost control over the hospital supply chain
When vendors need to be credentialed for facility access, supply chain managers have more control over the products that are coming into their facilities. They can ensure supplies have been sourced from safe, reliable vendors who pass OIG/SAM/OFAC screenings. Additionally, this control over the supply chain helps reduce costs by protecting physician’s billable time and preventing rogue product decisions with non-credentialed vendors, helping to ensure supply chain compliance and diligent spend management. - More emphasis on privacy
Technology has made communication within a hospital or health system much easier, but it also brings increased responsibility to protect all information within the organization. Access to a single computer could potentially provide admission to an entire healthcare organization and confidential data. This was not the case years ago with paper records and before HIPAA laws. - Infection risk mitigation
Many facilities implement a vendor compliance management software only after a person has been identified with a disease that puts other patients and staff at risk for infection. Establishing a secure protocol for vendor access, including immunization requirements, is essential to mitigate vendor risk and provide evidence that an organization is making every effort to protect its population. This has been become especially critical in recent years due to the COVID-19 pandemic.
How are healthcare facilities adapting to ensure compliance?
A stringent vendor compliance policy and robust vendor credentialing program is the best defense when it comes to protecting your organization from the financial and legal consequences that can arise from non-compliant vendor visits.
Because credentialing can be an arduous process for both the healthcare system and the vendor, an increasing number of hospitals are turning to third parties to be their partner in protecting vendor compliance.
What to look for in a vendor credentialing partner:
- The ability to accommodate the unique needs of your organization
Each hospital and healthcare system is distinct, and the partner you choose should be able to adapt to your unique situation, such as deep background checks concerning child-endangerment for a children’s hospital or a wider array of immunizations for a critical illness facility.
- Ease of use
The credentialing process should be straight-forward for vendors, suppliers, and hospital staff alike.
- Technology
Automated and secure check-in at internet-free kiosks make it possible for every access point of a facility to be covered while increasing convenience for vendors. Also, look for real-time dashboards that track who is in your facility at any moment and can produce documentation for governing entities like the Joint Commission, if necessary.
Ready to streamline your vendor compliance process? Discover how vendor credentialing and supply chain solutions can enhance your supply chain management and protect you from risk.
