Latest / Becker’s Healthcare Podcast / Clinically Integrated Supply Chain Transformation at Akron Children’s with Joseph Carr

Transcript

Clinically Integrated Supply Chain Transformation at Akron Children’s with Joseph Carr · Becker’s Healthcare Podcast

0:00
Welcome to Becker's Healthcare Podcast. I'm Chris Sosa,
0:02
your host, and I'm very happy to be
0:04
joined today by Joseph Carr. He is vice
0:06
president of supply chain and support services for
0:08
Akron Children's in Ohio.
0:10
Joseph, thank you for joining us today.
0:12
Thanks for having me. Awesome. Well, we wanna
0:15
give our audience an idea of everything that's
0:17
going on supply chain wise at Akron Children's.
0:19
But before we do that, could you please
0:21
just introduce yourself and give us our audience
0:24
a little bit more information about your background
0:26
and your organization?
0:28
Sure. So I'm, Joseph Carr, vice president of
0:31
supply chain and support services
0:33
at Akron Children's Hospital.
0:35
Pretty neat to share the mission of Akron
0:39
Children's
0:40
is to improve the health of children, teenagers,
0:42
and young adults,
0:44
through excellence in patient care, education, research, advocacy,
0:48
and, community partnerships. So our vision is to
0:51
be most trusted, inclusive,
0:53
and accessible pediatric health system in our communities
0:56
we serve.
0:57
So what makes Akron Children special
1:00
is the legacy,
1:02
the culture,
1:03
and,
1:04
our responsibility
1:05
to Northeast Ohio. So
1:08
since 1890,
1:09
we've treated every child as we would our
1:12
own and never turned a child away. So
1:14
that commitment,
1:16
really matters deeply in our region.
1:19
We're deep rooted here.
1:21
Families rely on us not only for everyday
1:24
pediatric care, but for the very complex and
1:27
critical needs. Being a level one pediatric trauma
1:31
center,
1:32
we serve as a regional safety net and
1:34
referral destination
1:36
in caring for children,
1:38
you know, in the most vulnerable moment moments,
1:41
ensuring that they have access close to home.
1:43
So today, we have two hospital campuses, six
1:46
regional health centers, and,
1:48
more than 50 primary and specialty care locations
1:51
across Ohio,
1:53
and care for over a million patients each
1:56
year. From surgeries and urgent care to school
1:59
health and home care, we go beyond hospital
2:02
walls
2:03
being a vital part of the health and
2:05
stability of the communities. And we've only had
2:08
a few CEOs in our history.
2:11
We are very fortunate to be led by
2:13
Chris Gessner, a visionary leader
2:16
supported by one of the strongest executive teams
2:19
I've worked with. And
2:21
so the culture, financial resiliency, and forward thinking
2:24
mindset, the inclusiveness
2:25
are very exceptional here. And, honestly, not many
2:29
workplaces include therapy dogs, Elmo,
2:33
executives
2:34
dressed as Nemo, and then the co occasional
2:37
hall of famer in the hallway. It's a
2:39
place that keeps you inspired every day.
2:42
It sounds like a fun way place to
2:43
work to be sure.
2:45
Yeah. It is. Just so before we get
2:47
into what lies in the future for Akron
2:50
Children's, let's look at at 2025
2:52
just for a moment here. So what would
2:54
you say is the most important initiative you
2:56
and your team
2:58
led in 2025?
2:59
Take us through how it evolved and and
3:01
the results,
3:02
that, you'd like to highlight.
3:05
Sure. You know, without question, it's been
3:09
transforming our supply chain support services into a
3:12
clinically integrated strategic model.
3:15
We branded that Commit for Kids program.
3:18
And so think of historically
3:21
more than
3:22
80% of contracting and inventory decisions
3:25
were handled by clinicians and department leaders,
3:28
which inevitably
3:30
pulls them away from patient care.
3:32
So our goal was to shift that back
3:35
to supply chain
3:37
while keeping clinical voices at the decision
3:40
centerpiece and
3:42
aligning operations with our mission to give caregivers
3:45
more time with patients. So
3:48
to do that, we formed a multidisciplinary
3:51
team, 20 stakeholders,
3:53
partnered with our GPO, Visiant,
3:55
alongside with a 135
3:57
hospital consortium
3:59
to standardize more than a 100 clinical product
4:02
categories.
4:03
Now we hosted
4:05
a nine day product expo with over a
4:07
140 clinicians
4:09
capturing their feedback,
4:11
to guide adoption. And alongside that,
4:14
we completed 11 lean projects,
4:17
last year to introduce automation and core performance
4:20
metrics and enhance our processes. So
4:23
the results have been transformative.
4:25
We opted into,
4:27
close to 40 product categories
4:30
generating,
4:31
half 1,000,000 in immediate savings. And now we're
4:34
projected to deliver more than 2,000,000 in annual
4:37
savings,
4:38
reducing SKUs, improving contract compliance.
4:42
And,
4:42
you know, as a previous clinician, one important
4:45
thing to me is freeing up 90% of
4:48
the clinician's time,
4:50
previously
4:50
spent on supply, relay tasks,
4:53
to focus on patient care. So think of
4:56
that spend that we talked about and that
4:58
span of control we expanded from 15% to
5:01
over
5:02
90%
5:03
of manageable spend. In addition to that, we
5:06
did a lot of other good things, you
5:08
know,
5:09
developing a heat map and
5:11
expanding clinician engagement with GPO councils.
5:15
If you kinda look at our baseline with,
5:17
like, a good Gartner
5:19
supply chain maturity model, we went from a
5:22
one plus to a near four in a
5:24
short period of time. So
5:26
without
5:27
strong clinical
5:28
partnership and external collaboration through strategic suppliers, it
5:32
wouldn't have been possible.
5:35
Yeah. As an, a nurse, Joseph, you have
5:37
that background, so you're able to
5:40
bring that into your
5:41
role here on supply chain. So, obviously, in
5:44
any sort of undertaking like this, they're gonna
5:47
be growing pains whenever you learn something new,
5:49
and changes can be difficult and time consuming.
5:53
Right? But now that you've had a chance
5:55
to look back on that, initiative that you
5:58
just shared with us, I mean, what's been
6:01
how have clinicians
6:03
should come to view this whole integration that
6:05
you've just outlined?
6:07
It's very unique here.
6:09
The clinical integration
6:11
oftentimes
6:12
thought of as
6:13
being
6:14
resistant to change has been the complete opposite.
6:18
You know, I go back to the days
6:20
when I was a clinician and I,
6:23
started in health care at Mayo Clinic and
6:25
where, you know, folks saw potential in me,
6:28
and I probably asked a question like, what's
6:30
the price of that? And they said, hey.
6:32
Let's see you as a guinea pig and
6:35
build a clinically integrated model.
6:37
And it just kind of,
6:40
became natural to have those discussions and to
6:43
speak to the quality
6:45
over price or outcomes over cost equation with
6:48
everyone.
6:49
It really connects,
6:51
the dots for them in different languages. And,
6:55
just the the receptivity has been phenomenal from,
6:59
the c suite all the way cascading through
7:03
to the leadership. It's been,
7:04
the PH has been really well primed
7:08
to bring something of a such a strategic,
7:12
nature and nonetheless do it in a short
7:14
period of time.
7:16
Many organizations,
7:17
the
7:18
the change management, the readiness,
7:22
as we've teamed up with OPEX
7:24
has not been,
7:25
primed for those type of,
7:28
ambitious
7:29
transformations. And so we're very fortunate. A lot
7:31
of folks would take a couple years to
7:33
do that. Here, it's just, been a lot
7:36
more
7:37
expedite because of the engagement, the partnerships,
7:40
and also building strategic partnerships outside of, you
7:44
know, our ins inside our walls,
7:47
with our GPO and distributors.
7:50
That's accelerated
7:52
the transformation.
7:54
That's fantastic. I mean, it's always
7:56
ideal to build that trust equity with the
7:59
staff when you're making huge changes like this,
8:01
I would imagine.
8:02
So as we look into
8:04
2026
8:05
then, now that you've got some of these
8:08
grand projects off the ground. Right? So what
8:11
would you say are your biggest priorities for
8:13
for you and your team that is and
8:14
any headwinds or or even tailwinds that you're
8:17
focused on for this year?
8:19
Yeah. You know, as we've gotten organized with
8:22
our strategic plan that cascades, of course, from,
8:26
the organization,
8:28
our our vision centers on three words,
8:32
collaboration,
8:33
performance,
8:34
value.
8:35
We love it. Ultimately, it ties back to
8:38
our mission,
8:39
giving
8:40
clinicians more time. And,
8:43
we see
8:45
five pillars for us that are customized to
8:49
supply chain,
8:50
that start with logistics, distribution, and inventory assurance.
8:55
So,
8:56
very key for us in this year is
8:59
to lay the foundation with launching an off-site
9:01
distribution
9:02
and lump model with our strategic partner, Medline,
9:06
to be able to,
9:08
free up our time in storeroom activities to
9:11
expand
9:12
inventory management operations into nursing units and,
9:16
freeing up their time.
9:18
So become operationally
9:20
efficient. That's our first pillar with that section.
9:22
And then customer fulfillment and relationships
9:26
is our second pillar.
9:28
Deepening our clinician
9:30
engagement through the commit for kids, strengthening
9:33
a service focused supply chain support.
9:35
Again, expanding
9:37
their voice,
9:38
the voice of the customer
9:40
into not just, our,
9:43
internal
9:44
four walls, but also,
9:46
in the industry.
9:48
To elaborate on that, I think it's probably
9:51
important to recognize
9:53
on a personal note, the mission of Akron
9:56
Children's is deeply
9:58
meaningful to my family.
10:01
To translate, our fourth child, Luca, Gian Luca,
10:04
has special needs,
10:05
related to a genetic neurological
10:08
condition.
10:09
So as caregivers, we understand firsthand the importance
10:13
of a standalone children's hospital. It's, truly been
10:17
a blessing, a second home for our families.
10:19
So that perspective is a gift.
10:23
And so not only do we receive care,
10:25
but be in a position to advocate for
10:27
children and the families.
10:29
This this is our journey. So when we
10:32
talk about customer relationships and fulfillment and,
10:36
expanding and advocating in that voice,
10:40
it really is,
10:42
something that is meaningful to myself and, of
10:44
course,
10:45
my team.
10:46
The third pillar is data technology process and
10:49
reporting.
10:50
So we are focused on building a supply
10:53
chain control tower aligned with our ERP
10:57
implementation that's to go live with Workday in
10:59
2027.
11:00
So the design of that, of course, is
11:02
going to be imperative to our success, gives
11:05
us visibility,
11:06
risk management, decision making, etcetera.
11:09
Fourth pillar is work culture and engagement,
11:12
modernizing
11:13
our structure.
11:15
We, just finished up building career ladders and
11:18
investing
11:19
in, talent development,
11:22
through our partners too. So just seeing the
11:25
growth and development of the teams,
11:27
that's very meaningful to me as a leader.
11:30
That kinda makes me that's my barometer for
11:34
how successful I am as a leader, at
11:36
the end of the day. And and the
11:38
last pillar is growth and financial performance. Right?
11:40
Expanding
11:41
the sourcing cost management, reinvest,
11:44
the savings in patient care, and expand access
11:47
across Northeast Ohio. So I say the biggest
11:51
headwind is capacity.
11:53
Think of health care as evolving rapidly. And
11:57
so AI and automation are starting to reshape
12:01
us, the forecasting,
12:03
the sourcing intelligence,
12:04
the workflows. And so
12:06
the challenge is adopting
12:09
innovation in a way that strengthens, not distracts
12:12
from our mission, and then assuring also
12:16
that our teams,
12:18
are properly equipped to manage the changes,
12:22
that are on the horizon.
12:24
So
12:25
keeping that balance act of running,
12:28
at the right pace,
12:30
of transformation
12:31
without,
12:32
causing burnout is something that, would usually keep
12:35
me up at night.
12:37
It's a delicate balance to be sure, Joseph,
12:40
and one that, any number of your colleagues
12:42
in in health care are facing too. I'm
12:44
sure they can relate to this when they
12:46
listen to that, and, you know, you guys
12:47
can exchange ideas beyond what you're sharing with
12:50
us here. But while we are here,
12:53
I am curious. So when you look at
12:55
all these things that you just laid out
12:56
for us coming for App Engine 2026,
12:59
and it's a lot. And I'm sure you're
13:01
looking forward to all of it. When I
13:03
ask this question, it doesn't have to be,
13:06
a downer. Let's just say that. But what
13:08
do you think is gonna be the hardest
13:10
thing you'll have to do, the toughest thing?
13:11
It could be also thing you're most looking
13:13
forward to, but, you know, it's gonna be
13:16
gonna take a lot of work. Let's put
13:17
it that way. So what what would you
13:18
put into that category?
13:20
Yeah. I think going back to that earlier
13:22
point,
13:23
managing the pace
13:24
of transformation
13:26
while
13:27
protecting our team's well-being
13:29
and staying mission focused.
13:33
As we
13:34
modernize the systems and redesign processes
13:37
and
13:38
expand our strategic thinking, our role,
13:42
preparing for all these technological
13:44
shifts,
13:45
we gotta maintain daily operations,
13:48
right, that clinicians depend on. And at the
13:52
same time, AI and,
13:54
advanced analytics are starting to transform,
13:57
from predictive to sourcing intelligence and automation. So
13:59
that challenge
14:01
is introducing
14:02
that level of innovation in a way that
14:05
empowers people rather than overwhelms them.
14:09
That means
14:10
pacing change thoughtfully,
14:13
providing
14:14
strong training and support,
14:16
and being very clear,
14:19
which helps my background
14:21
to regularly
14:22
explain
14:23
the why,
14:24
which is always gives caregivers more time with
14:28
patients and ensures reliable care for kids. So
14:31
tie it back to the mission. Tie it
14:33
back to why of why we are doing,
14:35
what we're doing to, you know, really
14:38
bring value to the organization and, ultimately, as
14:41
a organization, bring value to the community.
14:45
Yeah. Explaining the why certainly is
14:48
among this generation of leaders, Becker has found
14:51
that that's very important.
14:52
And, you know, not to say there wasn't
14:54
before, but it it definitely just seems to
14:56
be more at the forefront now,
14:58
in a in a positive way, certainly.
15:01
Joseph, last thing I wanna ask you is
15:04
also future oriented here. So you mentioned, again,
15:07
some of the projects you've got going on,
15:09
including the new control tower, you know, and
15:11
other initiatives you have going. So where do
15:13
you see the best opportunities for growth as
15:16
far as African children is concerned?
15:18
And you can look at that in a
15:19
year, five years, whatever timeline, you think fits
15:22
best.
15:23
Well, it's pretty neat to see that intersection.
15:27
An intersection of clinical integration,
15:30
operational excellence, and community outreach.
15:34
So as that intersects,
15:36
you know, it's important for us to embed,
15:39
supply chain expertise into clinical operations and vice
15:42
versa.
15:44
As we've had
15:46
a clinical,
15:47
leader join our team to help with implementation.
15:51
By doing that,
15:52
we reduce variation and manage costs responsibly,
15:56
right, and free up clinicians to focus again
15:59
on that patient care. The operational
16:01
strength creates the capacity
16:03
to grow.
16:04
That's why that talent development is so imperative.
16:08
So opportunities for growth beyond our walls, there's
16:11
a tremendous opportunity to expand outreach
16:13
into more communities
16:15
and bring services closer to where families live.
16:19
Whether it's supporting
16:21
ambulatory
16:22
expansions,
16:24
school based health, especially
16:26
pet pediatric services,
16:28
different service lines, or new partnerships. It just
16:31
means improving access,
16:33
especially for families who might otherwise face barriers
16:37
to care.
16:38
That is very common for caregivers.
16:41
The
16:42
challenge of just getting a a nonverbal nonmobile
16:45
child
16:46
to receive care.
16:48
It's a lift just to literally get them
16:52
from,
16:53
a house to a car. Imagine to do
16:56
all of the rest. So, ultimately, our differentiator
16:59
is culture.
17:01
We
17:02
really feel strongly about humility, work ethic, and
17:05
kindness, and that really is a foundation that
17:08
allows us to scale thoughtfully while staying grounded
17:11
in why we exist,
17:13
which going back to our mission is improving
17:15
the health of children, families across our communities.
17:19
Very special place,
17:21
and very blessed to to have my role
17:24
here.
17:25
Well, Joseph, thank you so much for joining
17:27
our podcast and giving our audience a great
17:30
background of of where
17:32
Akron Children's has been for over a hundred
17:35
years well, over a hundred years and where
17:36
it's gonna be going in in the next,
17:38
foreseeable future here. Yeah. We're gonna see you
17:41
coming up at a conference, which we can't
17:42
wait for, and, hopefully, this is definitely not
17:45
the last time we connect.
17:47
Thanks so much for the time, Chris. Great
17:49
to connect.