Latest / Becker’s Healthcare Podcast / Mike Hopkins, Vice President of Supply Chain at Northwestern Medicine
Transcript
- 0:02- Every health system executive right now is being
- 0:04- asked to do something that has no useful
- 0:06- precedent,
- 0:07- make durable technology decisions in an environment that
- 0:10- looks meaningfully different every six months.
- 0:13- The pace isn't slowing,
- 0:14- the vendor landscape isn't getting simpler, and the
- 0:17- cost of missteps
- 0:18- keeps rising.
- 0:19- Becker's eleventh annual IT and Revenue Cycle Conference,
- 0:23- The Future of AI and Digital Health, exists
- 0:25- for exactly this challenge.
- 0:27- Here, you'll find more than 2,500 executive level
- 0:30- attendees,
- 0:31- 600 plus speakers, and four days of sessions
- 0:34- built around the questions leaders are actually wrestling
- 0:36- with.
- 0:37- How to scale AI responsibly,
- 0:39- how to protect increasingly complex systems,
- 0:42- how to bring more performance out of the
- 0:44- revenue cycle, and how to make tech investments
- 0:46- that hold up over time.
- 0:48- Join us September fourteenth through the seventeenth at
- 0:51- the Hilton Chicago.
- 0:53- You can register on our events page at
- 0:55- beckershospitalreview.com
- 0:57- by clicking on the events tab in the
- 0:59- upper right.
- 1:01- Welcome to the Becker's Healthcare podcast. I'm Ella
- 1:04- Jeffries, reporter with Becker's Healthcare.
- 1:06- Today, I'm joined by Mike Hopkins, vice president
- 1:09- of supply chain at Northwestern Medicine.
- 1:11- In this episode, we'll discuss how health system
- 1:13- supply chain leaders are navigating cost pressures, operational
- 1:17- volatility,
- 1:17- workforce challenges, and the growing role of technology
- 1:20- across health care operations.
- 1:23- Mike, thank you so much for joining me
- 1:24- today. It's a pleasure to have you. I'd
- 1:26- love if you could introduce yourself and share
- 1:27- a bit about your role at Northwestern Medicine
- 1:30- and how the supply chain organization is structured
- 1:32- across enterprise.
- 1:33- Yeah. Thanks.
- 1:35- Happy to. Thanks for having me today.
- 1:37- So, again, my name is Mike Hopkins, and,
- 1:40- I oversee,
- 1:42- you know, a a big chunk of our
- 1:43- supply chain at Northwestern,
- 1:45- all of our organizations' supply chain operations,
- 1:48- a lot of our pharmacy distribution,
- 1:53- biomedical engineering,
- 1:54- all of our process improvement within our supply
- 1:56- chain,
- 1:58- our
- 1:59- nonclinical
- 2:00- spend, all sorts of stuff.
- 2:02- It's
- 2:03- a very interesting organization.
- 2:06- It's
- 2:08- been growing at a a huge pace since
- 2:09- I've been there. I've been there for ten
- 2:11- years. We started when I started, it just
- 2:12- become a four hospital
- 2:14- health system. We're now 12. We have literally
- 2:17- hundreds and hundreds of clinics throughout Illinois and
- 2:20- some in Florida
- 2:21- as well.
- 2:23- You know, we've we've done a lot within,
- 2:26- Northwestern to ensure that our supply chain is
- 2:29- very
- 2:30- structured and standardized.
- 2:32- So
- 2:33- regardless of what hospital
- 2:35- or clinic that you're at,
- 2:37- you know, the processes
- 2:39- and the structure for how supply chain,
- 2:42- operates within our organization is,
- 2:44- is the same. So,
- 2:47- it's been a really interesting journey to say
- 2:50- the least.
- 2:52- Definitely. Thank you so much for that context.
- 2:55- I'd love to start with, you know, health
- 2:56- care supply chain leaders. You guys are navigating
- 2:59- a particularly
- 3:00- volatile environment right now. I'm curious what trends
- 3:03- or pressures are you watching most closely, you
- 3:06- know, right now and throughout the rest of
- 3:08- 2026 do you anticipate?
- 3:10- Yes. I would say there's probably three things
- 3:12- that are are the biggest,
- 3:13- pressure trends that are that are going on
- 3:15- right now. Right?
- 3:17- First is,
- 3:18- just cost, and cost is always around.
- 3:21- But with there's a lot of volatility within
- 3:23- in that.
- 3:25- There has been over the last few years
- 3:26- of tariffs.
- 3:27- Right now, the oil prices are all over
- 3:29- the place.
- 3:30- So pricing in itself is is a very
- 3:34- volatile,
- 3:35- environment right now. So trying to, you know,
- 3:37- ensure that our
- 3:39- suppliers are, you know, holding to their contracts
- 3:42- to ensure that if there is some sort
- 3:44- of, you know, issue they're having, that we're
- 3:46- being, you know, a good partner and and,
- 3:49- you know, listening to how we can,
- 3:52- both help navigate that pricing environment right now.
- 3:56- Second is just the
- 3:59- supply disruptions.
- 4:01- Ever since I mean, supply disruptions in health
- 4:03- care have always been bad.
- 4:05- They were especially bad in 2020, obviously, with
- 4:08- COVID.
- 4:09- I would say they're as bad as they've
- 4:10- ever been right now.
- 4:12- So just in the day to day supply
- 4:15- chain and ensuring that we have the right
- 4:17- products in the right place at the right
- 4:19- time is exceptionally challenging right now,
- 4:22- because there are so many current disruptions within
- 4:24- the supply chain world. So
- 4:26- navigating that,
- 4:28- ensuring that our clinicians
- 4:30- understand what is going on, why it's going
- 4:33- on, and what options they have is the,
- 4:36- imperative right now. And then,
- 4:39- you know,
- 4:41- lastly,
- 4:42- volatility around the environment is within technology. Right?
- 4:44- So AI is is starting to disrupt
- 4:47- the health care supply chain, and
- 4:50- and you don't wanna be
- 4:52- on the back end of the disruption. You
- 4:54- wanna be on the front end of it.
- 4:55- So you we're very much,
- 4:58- you know,
- 4:59- doing a lot of learning and researching and
- 5:01- looking into how,
- 5:03- our supply chain can be, you know, AI
- 5:05- enabled and supported
- 5:07- and that we're doing as much as we
- 5:09- can to stay on the forefront
- 5:11- of, you know, being,
- 5:14- a top end supply chain, within the country.
- 5:17- Definitely. Thank you for sharing. And you just
- 5:20- mentioned AI. I'd love to dig deeper with
- 5:22- that. You know, AI and automation are becoming
- 5:24- bigger topics across health care operations, but I
- 5:27- also do think specifically picking up in the
- 5:29- supply chain realm. Where do you see the
- 5:31- greatest opportunity for tech within supply chain management
- 5:34- today? You know, whether that is to help,
- 5:36- you know, with management or other areas in
- 5:39- supply in general. Yeah. I think the biggest
- 5:41- advantage it's going to give supply chain for
- 5:44- a while is it's going to do us
- 5:46- it's going to allow us to do
- 5:48- more with what we have today.
- 5:50- So what I see and even at Northwestern
- 5:53- where we have a pretty broad,
- 5:55- control span and supply chain, there's still a
- 5:58- lot of things that we could
- 6:00- we could continue to do if we had
- 6:02- more resources or or better ways to make
- 6:04- faster decisions, and AI is gonna help us
- 6:07- with with those things. It's not necessarily gonna
- 6:08- give us more resources. Right? But it's going
- 6:10- to
- 6:11- allow us
- 6:13- to free up time within people,
- 6:16- that they're spending doing, you know, research or
- 6:19- mundane,
- 6:20- tasks that, you know, can be
- 6:23- automated,
- 6:24- being able to provide,
- 6:26- at least decisions to people to review that
- 6:29- they can make them faster, quicker, and smarter.
- 6:32- That's gonna allow,
- 6:33- our health care supply chain teams to take
- 6:36- on more within the organization, and the more
- 6:38- we take on, the more more value we
- 6:40- provide. So I I think it's just opening
- 6:42- huge doors to,
- 6:44- you know,
- 6:45- having having more of the organization be able
- 6:48- to
- 6:49- reap the benefits of of supply chain being
- 6:51- in part of it. I I I know
- 6:52- there's a lot of supply chains,
- 6:55- that they're not in the labs. They're not
- 6:57- in the pharmacies. They're not in a lot
- 7:00- of these ancillary areas because they just don't
- 7:02- have the bandwidth and the and the manpower
- 7:04- to do it, the FTE
- 7:08- realm.
- 7:09- So, really, what it's gonna be able to
- 7:10- do is gonna allow us to be able
- 7:12- to do more with the same amount of
- 7:14- people that we have, and that more is
- 7:16- gonna provide a a tremendous amount of value
- 7:18- to our organizations.
- 7:20- Definitely. And I think that'll only help you
- 7:23- guys stay more resilient in the face of
- 7:25- those pressures that you were talking about earlier.
- 7:27- And continuing on this idea of resilience, how
- 7:30- has Northwestern Medicine's approach
- 7:32- to supply chain resilience evolved over the last
- 7:35- few years, particularly after the disruptions that many
- 7:38- health systems experienced during and after the pandemic,
- 7:41- and then now from, you know, geopolitical events
- 7:43- such as the Iran conflict?
- 7:46- Yeah. So there's been, I think, a huge
- 7:48- shift in,
- 7:51- you know, how supply chains view
- 7:54- being resilient.
- 7:56- Some have looked at it like, I'm gonna
- 7:59- be resilient
- 8:00- by building a warehouse and stocking up a
- 8:02- lot of product, and and that not saying
- 8:04- that's necessarily wrong. But I I think the
- 8:07- Northwestern approach to it has been more around
- 8:10- how do we become smarter
- 8:12- at making faster decisions. And,
- 8:15- you know, we're we don't have AI enabled
- 8:17- into this piece of it yet, but we
- 8:19- will at some point in the not super
- 8:21- distant future. And I really believe that
- 8:25- the visibility and transparency
- 8:27- to allow us to make smarter, faster decisions
- 8:29- around resiliency is going to be sort of
- 8:31- the secret sauce on how you become
- 8:34- a a resilient supply chain that can,
- 8:37- you know,
- 8:39- find ways to to mitigate
- 8:41- disruptions and and be good partners in the
- 8:43- organization. You know, what what I've seen in
- 8:45- the past is
- 8:46- you'll find out at the last second that
- 8:49- there is going to be a a disruption
- 8:51- within your supply chain, and then you've gotta
- 8:53- do a bunch of research to find out,
- 8:55- you know, what,
- 8:57- how long the disruption's gonna last and and
- 8:59- what other options you may have. And then
- 9:01- you've gotta go reach out and find the
- 9:04- right clinical partners to help make decisions on
- 9:06- what, you know, they're willing
- 9:09- to to use and what, you know, training
- 9:11- may need to go with that, you know,
- 9:13- new product, etcetera. And then you've gotta go
- 9:14- out in the market and figure out, you
- 9:17- know, how you can find some of these
- 9:18- products. And
- 9:20- and it's it's a lot of work, and
- 9:22- it takes a lot of time. And and
- 9:23- the supply chains that get really fast and
- 9:26- really good at those pieces are gonna be
- 9:28- the ones that are gonna be able to
- 9:29- keep themselves
- 9:30- sort of sheltered from some of these disruptions
- 9:33- because they're gonna be able to make fast,
- 9:35- smart decisions and be able to go out
- 9:37- and acquire inventory
- 9:39- to help them,
- 9:41- mitigate some of these problems. Yeah. You know,
- 9:43- if you have a warehouse, you may be
- 9:44- able to, you know, push off fifteen, twenty
- 9:46- days of having to make that decision. But
- 9:49- in that pushing off the fifteen or twenty
- 9:51- days, I think you're also putting yourself in
- 9:52- a place where you may not be able
- 9:55- to get access to some of the,
- 9:58- substitute products because, other organizations
- 10:01- that have made, faster decisions around that have
- 10:04- been able to acquire product and and, been
- 10:07- able to,
- 10:09- you know, get that,
- 10:12- distributed throughout their organization.
- 10:15- You know, another big piece that is is
- 10:18- taken hold within the organ within not just
- 10:20- our organization, but supply chain as a whole
- 10:22- in health care is
- 10:24- we're we're partnering together better than we used
- 10:26- to. So,
- 10:28- we
- 10:29- we were part of the, you know, initial,
- 10:31- probably five health systems that started up, HERC,
- 10:35- the health care industry,
- 10:37- resilience collaborative,
- 10:39- and we've been working to really well together
- 10:42- as a as a, you know, supply chains
- 10:44- across the country and our distribution
- 10:48- or in manufacturing partners to just create more
- 10:51- transparency,
- 10:52- you know, have the our manufacturers
- 10:55- and distributors understand, like, hey. This is what
- 10:57- we're trying to accomplish.
- 10:59- You know, manufacturers and distributors, they they worry
- 11:02- when something is gonna go,
- 11:04- on disruption that the first thing that's gonna
- 11:06- happen is people are gonna buy up a
- 11:08- you know, a few people are gonna buy
- 11:10- up a ton, and,
- 11:12- it's gonna be really hard for other people
- 11:13- to get to any of the products. So
- 11:16- what we're trying to do is help them
- 11:17- see, you know, the transparency upfront
- 11:20- actually helps us not do that. And the
- 11:23- more we know about it,
- 11:25- the less
- 11:26- the,
- 11:28- the panic hoarding happens. So,
- 11:31- it's been a great it's really been a
- 11:32- great collaborative initiative between,
- 11:34- you know, the industry and our industry partners,
- 11:37- and I've been really happy that, it was
- 11:39- part of the beginning of it and that
- 11:41- our our, you know, current Northwestern,
- 11:44- resilience team is is
- 11:46- continuing to be part of that,
- 11:48- organization.
- 11:50- Yeah. Definitely. That that sounds like a great
- 11:52- initiative. And like I said, it's it's really
- 11:54- gonna help you guys all stay resilient,
- 11:58- in the face of these tensions. So that's
- 12:00- great to hear. I'm curious, you know, what
- 12:02- would you say are the biggest barriers to,
- 12:04- you know, achieving that transparency or achieving this
- 12:07- resilience that you were talking about?
- 12:11- Honestly, I I think there's still a lot
- 12:13- of
- 12:14- fear within
- 12:16- health systems
- 12:17- and
- 12:19- manufacturers and distributors to share information.
- 12:22- I I think they're you know, we all
- 12:24- look at it like it's proprietary to us,
- 12:28- and there are some some things that, you
- 12:30- know, could happen that would not be
- 12:32- necessarily beneficial if it was,
- 12:35- you know, escaped out to the general general
- 12:38- not general public, but if everybody had access
- 12:40- to it within the health care supply chain
- 12:41- and and trying to, you know, find the
- 12:44- right way that we can share the information
- 12:46- we all need without putting anybody's,
- 12:50- anybody at risk,
- 12:51- with things that they feel are proprietary
- 12:54- to themselves, I think is the next sort
- 12:56- of,
- 12:57- you know, big barrier that we need to
- 12:58- figure out how to cross.
- 13:02- Gotcha. Thank you for sharing that.
- 13:05- And I think another thing too that's becoming
- 13:07- increasingly
- 13:08- important to supply chain leaders is being asked
- 13:10- to contribute beyond just cost savings
- 13:13- alone. How would you say that the role
- 13:14- of supply chain evolves strategically
- 13:17- inside the health system?
- 13:19- So here's the way I look at it
- 13:21- and maybe, you know, Northwestern is probably a
- 13:23- little different than most, and I probably have
- 13:25- a different viewpoint of this than most. But
- 13:27- the pea people in supply chain are very
- 13:29- process focused, at least a lot are.
- 13:32- We we do look at, like, how we
- 13:34- make things simpler, easier, faster, remove waste out
- 13:38- of
- 13:39- out of, processes,
- 13:41- and cost. And
- 13:44- that skill set is super underrated
- 13:47- outside of supply chain.
- 13:49- And where I think supply chain leaders should
- 13:53- continue to look past cost savings is how
- 13:55- they can make their their entire organization more
- 13:58- efficient.
- 13:59- Simple simple example to me is is the,
- 14:03- you know, procedure
- 14:04- slash preference cards within an OR or
- 14:08- the
- 14:09- procedure space. And there is a ton of
- 14:12- waste that occurs within that. And the waste
- 14:14- is yeah. We we open things. We don't
- 14:17- use them. It's a there's financial waste,
- 14:19- but there's a whole lot of
- 14:22- supply, tray, equipment,
- 14:24- and drug movement that happens that
- 14:27- it it happens unnecessarily.
- 14:29- So at the end of a case,
- 14:32- there are multiple supplies and equipment and trays
- 14:35- and pharmaceuticals
- 14:37- that don't get
- 14:38- used. They need to be accounted for. They
- 14:41- need to be returned appropriately,
- 14:43- and
- 14:44- all that stuff takes
- 14:46- human labor and time.
- 14:48- And
- 14:50- the more that supply chain and this way
- 14:53- that supply chain people think
- 14:55- as a in terms of removing waste out
- 14:57- of processes,
- 15:00- that really starts to help look at, you
- 15:03- know, how can we make our environment,
- 15:07- you know,
- 15:08- more efficient.
- 15:10- And that helps with cost because the more
- 15:12- efficient you are, the more you can you
- 15:14- can do in a day. So if all
- 15:15- those things add up to you can do
- 15:17- another case or two every day, that's a
- 15:19- huge
- 15:19- a huge benefit.
- 15:21- It's hugely beneficial for
- 15:24- our clinical team's,
- 15:27- employee,
- 15:29- engagement. So, you know, they're spending a lot
- 15:31- of time right now,
- 15:33- doing a lot of just cleanup tasks at
- 15:35- the end of a case. I gotta put
- 15:37- all this stuff away. I didn't use these
- 15:38- things. I picked it all. The more that
- 15:40- we can help them be, you know, more
- 15:42- accurate with what they're doing and,
- 15:44- you know, their skill set then is more
- 15:46- focused on being a clinical person as opposed
- 15:49- to sometimes being a supply chain person or
- 15:52- a CSP person,
- 15:54- you know, the better off that they're going
- 15:56- to be as far as their job satisfaction.
- 15:58- And then on top of it, you know,
- 15:59- from a cost perspective, it's always it's always
- 16:02- going to to help in in that regards
- 16:05- as well.
- 16:07- I'd also think that, you know, supply chain
- 16:11- helps with the, you know, strategic management within
- 16:14- an organization as far as, like, when you're
- 16:16- growing,
- 16:18- bringing in a new hospital or growing your
- 16:20- ambulatory
- 16:21- clinics,
- 16:22- the same sort of vision where it's, you
- 16:24- know, very streamlined and structured, and we can
- 16:26- help,
- 16:28- get a lot of these things done,
- 16:30- in a more efficient and cost effective,
- 16:33- manner. It helps,
- 16:35- helps our organization,
- 16:37- when it comes to, you know, strategic growth
- 16:39- within,
- 16:40- our facilities.
- 16:42- Definitely. And I think too the the AI
- 16:45- portion of it that we were talking about
- 16:46- earlier will only help health systems, you know,
- 16:48- achieve A 100%. Effective measures. Yeah. Yeah. Because
- 16:52- right now, the whole the whole piece with
- 16:54- even the even the when I was talking
- 16:56- about preference cards, I mean, that's a lot
- 16:58- of manual,
- 17:00- you know, manipulation of information and data that
- 17:03- needs to occur, and it's why it really
- 17:04- doesn't happen very well.
- 17:06- And if we can get to the point
- 17:08- where we can start using AI to, like,
- 17:10- start bringing forward recommendations, like, hey. This is
- 17:12- what this preference card should look like as
- 17:15- opposed to somebody having to go through and
- 17:17- make that determination.
- 17:19- Yeah. You know, you're gonna have supply chain,
- 17:21- clinicians, physicians review it and sign off, yes,
- 17:25- no, to these changes. But at the end
- 17:27- of the day, the faster you can make
- 17:28- the recommendations, the faster you're gonna make the
- 17:30- changes you need to.
- 17:32- Definitely.
- 17:34- And, you know, aside from, you know, the
- 17:36- AI and automation increasing, you know, looking ahead,
- 17:39- what do you think will most fund fundamentally
- 17:41- change health care supply chain operations over the
- 17:44- next, say, three to five, ten years?
- 17:47- So to me, it's a couple things. I
- 17:49- mean, I think it's gonna be, like,
- 17:51- AI works really well when you have really
- 17:53- good data.
- 17:56- I think, fundamentally, we have to get better
- 17:58- with
- 17:59- data management within supply chain. I we do
- 18:01- a really good job at Northwestern, so this
- 18:03- is this is,
- 18:05- not anything we're not doing, you know, properly.
- 18:07- But I do, you know, being out in
- 18:09- the industry and conferences and peers, I think
- 18:12- there's
- 18:13- a big opportunity
- 18:14- that's that lies in there within data management,
- 18:17- ensuring that that part is
- 18:19- as clean as it can be. And, you
- 18:21- know, at some point, obviously, you know, AI
- 18:23- is gonna help us take all that information
- 18:25- and data and put it together and start
- 18:27- giving us, you know, transparency and visibility that,
- 18:30- you know, we don't we don't have or
- 18:33- right now, or it takes us a lot
- 18:34- of work to get to.
- 18:37- But what I think, you know, most fundamentally
- 18:39- is going to change,
- 18:41- is really around, like, the skill sets and
- 18:43- the and the people within supply chain.
- 18:47- You know, there's always gonna be sort of
- 18:48- that frontline need for supply chain where we've
- 18:51- got, you know, some people on the receiving
- 18:52- dock, and we've got people that are, you
- 18:54- know, filling supply rooms, etcetera. You know? Yeah.
- 18:57- But at some point, you know, some of
- 18:58- that will get a little more automated, but
- 19:00- that's always gonna be there. But the skill
- 19:01- set,
- 19:03- in health care supply chain operations,
- 19:05- is going to dramatically
- 19:07- need to change as time goes on, and
- 19:10- and we get more data driven and more
- 19:12- AI driven. And I think the organizations
- 19:14- that really focus on
- 19:16- teaching, training, and growth within their own organizations
- 19:19- are gonna be the ones that are gonna
- 19:21- be successful.
- 19:22- I think if you're,
- 19:25- an organization that's just looking out into the
- 19:28- industry to hire new people to continually bring
- 19:31- them in to con to grow your supply
- 19:33- chain, I think you're gonna get really discombobulated
- 19:36- really fast. I think,
- 19:38- the organizations
- 19:39- that have really embedded themselves,
- 19:42- with,
- 19:43- you know,
- 19:45- a program that grows their own employees internally.
- 19:49- I think that is going to be sort
- 19:50- of the secret sauce in the next three
- 19:52- to five years that's going to,
- 19:55- help
- 19:57- create supply chains of the future as opposed
- 19:59- to people that are just trying to, like,
- 20:02- catch up from the the back end of
- 20:04- it by bringing people in who have learned
- 20:06- those skill sets at other organizations.
- 20:10- Definitely. I think that was I think you
- 20:11- couldn't have said any better great insights.
- 20:14- Well, Mike, thank you so much. This has
- 20:15- been such a great conversation.
- 20:17- Today is all the time we have today.
- 20:19- But I wanna thank you again for joining
- 20:21- me on today's episode of the Becker's Healthcare
- 20:23- podcast.
- 20:24- Thanks everybody for listening, and we will see
- 20:26- you next time.