UC Health Procurement

Leveraging Scale for Value (LSfV)

 

The UC Health Supply Chain and Procurement division is part of a systemwide team to deliver on the promise of becoming the keystone strategic partner for the University of California.

The Procurement function is responsible for the Leveraging Scale for Value initiative (LSfV) which brings significant efficiencies in supply chain, revenue cycle, and information technology. The cumulative financial benefit for this project is more than $180 million for FY 2015, more than $440 million thru FY 2016, $720 million thru FY 2017 and more than $950 million lifetime through FY 2018.

The UC Health executive and medical center leadership strongly supports systemwide transformation. Quality and supply chain efforts go hand in hand; partnering with stakeholders and suppliers will enhance quality and reduce supply chain costs. In order to deliver value and cost reduction in supply chain, we must promote systemwide collaboration. The basic principle for the team is the shift from local, or campus level, work efforts to greater systemwide collaborative projects. To support this transformation, UC Health Procurement and Supply Chain leaders commit to the following:

Mission

Work hand in hand as strategic partners with medical center leadership and our vendors to strategically optimize systemwide purchasing to create significant savings for the University of California.

Strategic Objectives

  • A greater percentage of our contracting and savings must shift to strategically sourced multi-year contracts.
  • We must create a more systemwide understanding of preference and selection among clinicians towards influencing our stakeholders and suppliers.
  • Our early involvement will enable the Procurement and Supply Chain team to better align and innovate with core suppliers.

Goals

  • To increase system collaboration through staffing and deployment of strategic sourcing teams.
  • To innovate an engagement model with clinicians around medical supply selection and utilization.
  • To deliver $100 million in annual benefit (or savings) by end of fiscal year 2016.
  • To deliver $150 million in annual benefit (or savings) by end of fiscal year 2017.