Latest / Becker’s Healthcare Podcast / Ada Demir, Vice President of Supply Chain at Dartmouth Health
Transcript
- 0:02The most important health care decisions don't happen
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- 0:46Hello, everyone. This is Jacob Emerson with the
- 0:48Becker's Healthcare Podcast.
- 0:50Thrilled today to be joined by Ada Demir,
- 0:52who's the vice president of enterprise support services
- 0:55and supply chain at Dartmouth Health. Ada, thank
- 0:58you so much for taking the time to
- 0:59be with me on the podcast today.
- 1:01Thank you, Jacob. It's my pleasure.
- 1:04Likewise, Ada. We're glad to have you with
- 1:06us. And before we dive into everything we
- 1:08wanna talk with you about, can you first
- 1:10tell us a little bit more about yourself,
- 1:12your background in health care, and what it
- 1:14is that you do today at Dartmouth Health?
- 1:17Absolutely.
- 1:19So I joined Dartmouth Health, September
- 1:222025.
- 1:23I am very excited to jump on this
- 1:27transformation,
- 1:28and transition to transformation,
- 1:31of supply chain.
- 1:33Dartmouth Health is a nationally recognized,
- 1:37academic medical center
- 1:40operating
- 1:41in rural health care.
- 1:43They are recognized for clinical excellence
- 1:46in research,
- 1:48training the next generation of health care leaders,
- 1:51and delivering science driven patient centered care.
- 1:55So,
- 1:56they have been around for more than two
- 1:58hundred years,
- 2:00yet have been always committed,
- 2:02and I'm really glad to be a part
- 2:04of that journey.
- 2:07Wonderful. Well, I appreciate the quick overview there,
- 2:09Ada. And like I said, we're glad to
- 2:10have you with us today to talk about
- 2:13a really important topic in health care,
- 2:15clearly very, very relevant right now given everything
- 2:18going on policy wise, and that's supply chain,
- 2:21which, of course, is your focus at the
- 2:23health system.
- 2:24And, you know, you mentioned you you started,
- 2:27at Dartmouth,
- 2:28last year, and and you've described it as
- 2:31a very exciting time to be in the
- 2:34supply chain publicly.
- 2:36So so talk to us about that. What
- 2:38does being in hospital supply chain look like
- 2:41right now? How would you frame,
- 2:43the the context of your role and and
- 2:46where things stand,
- 2:47for you as as an industry right now?
- 2:50Absolutely.
- 2:51Like you very well mentioned,
- 2:53almost all hospitals, and I believe we have
- 2:56around 6,200
- 2:58hospitals in the nation.
- 3:00Looking ahead,
- 3:02almost all hospitals
- 3:04face substantial headwinds.
- 3:06It's
- 3:08around reduced funding and reimbursements,
- 3:11slower revenue growth,
- 3:13but most importantly,
- 3:15increasing
- 3:16labor and supply expenses.
- 3:18To manage it within budget has been much
- 3:21more challenging,
- 3:23than even COVID times.
- 3:25So we need to implement
- 3:27a seriously
- 3:29revised
- 3:29and thorough strategy
- 3:31to understand and manage the drivers of these
- 3:34expenses.
- 3:37Considering
- 3:37almost every health system is operating
- 3:40with single digit margins.
- 3:43And if we consider
- 3:45most of the health care systems
- 3:47are even operating at breakeven,
- 3:50every dollar you bring, every dollar you save
- 3:53is equal to every revenue you generate.
- 3:57So that brings a bigger and clearer lens,
- 4:00like,
- 4:01what we should do, how we should strategize
- 4:04to manage
- 4:05our third party spend, non labor.
- 4:09Absolutely. So it's it's getting tougher,
- 4:11for for health systems, of course, overall from
- 4:14a margin perspective, ADA. Supply chain, of course,
- 4:17a major piece of that. So I wonder
- 4:20for for the other hospital leaders listening in,
- 4:24for the CEOs, for the CFOs of these
- 4:26systems all over the country,
- 4:28what what what would you say to them
- 4:29in terms of,
- 4:31how they need to be elevating their supply
- 4:33chain leaders,
- 4:35to a strategic seat at the table. Why
- 4:37is that so important? And and what's the
- 4:40value that the supply chain team brings that
- 4:43that that upper c suite might not currently
- 4:45see?
- 4:47Absolutely.
- 4:49I believe they do see. It's just about
- 4:52competing priorities.
- 4:53It's just about
- 4:55giving,
- 4:56the importance and attention to supply chain.
- 4:59Why I believe they see?
- 5:01Typically,
- 5:0240 to 45%
- 5:05of each hospital's
- 5:06revenue or total spending,
- 5:09is related to third party.
- 5:12It is supply chain spending, non labor.
- 5:15That's a large volume.
- 5:18Again,
- 5:19you typically deal with
- 5:21hundreds of different vendors or manufacturers
- 5:27that expire anywhere from,
- 5:30thirty to hundred and eighty days in a
- 5:32pipeline ahead of you, that you need to
- 5:35actively proactively
- 5:36negotiate. If you are a system,
- 5:39consolidate across hospitals,
- 5:41make sure there is standardization
- 5:44to be able to get the best from
- 5:46your contracts,
- 5:47and ensure price parity,
- 5:50which brings in your EMR and ERP consistency.
- 5:54So there are a lot of levers to
- 5:56pull. But, again,
- 5:57supply chain is only one of the key
- 6:00focuses for
- 6:01c suite
- 6:03along with revenue excellence,
- 6:05along with workforce productivity,
- 6:07provider productivity,
- 6:09or maybe some other metrics like managing
- 6:12length of stay.
- 6:14I trust that all
- 6:17hospital c suite
- 6:18is aware what supply chain is able to
- 6:21bring to the table.
- 6:23It's all about
- 6:24the focus and prioritization
- 6:26because they also have a lot to do.
- 6:30Key focus is supply chain, revenue excellence. We
- 6:33discussed that.
- 6:34But they also have other,
- 6:37levers to pull, like growing into attractive segments
- 6:40outside sometimes their core business,
- 6:43develop new care models,
- 6:45build digital capabilities,
- 6:48which will be a key driver,
- 6:50in the next decade,
- 6:51bringing,
- 6:53some AI use cases, cloud transition,
- 6:56while reducing traditional operating costs. But supply chain
- 7:00is definitely going to be,
- 7:02the key,
- 7:03again, player in managing that cost base and
- 7:07making sure we support our,
- 7:10leaders
- 7:11to meet the budgetary expectations
- 7:14and growth targets.
- 7:17Understood.
- 7:18Key cost lever, that needs to be controlled.
- 7:21And I know a big focus for you,
- 7:23Ada, since since coming, to Dartmouth is building
- 7:26up the supply chain departments,
- 7:29at the health system.
- 7:30And I wonder what you would say,
- 7:33to the executives listening in in terms of
- 7:35others who might be looking to restructure or
- 7:38strengthen their own supply chain functions.
- 7:40What's your framework for assessing assessing the best
- 7:43talent, identifying gaps that exist, ultimately, really building
- 7:47that team that can execute on a on
- 7:49a system wide transformation, especially at a at
- 7:52a facility like Dartmouth, which has,
- 7:55many facilities across your region.
- 7:58Very good.
- 8:00You are right, Jacob. It is
- 8:02it is easier said than done. And here,
- 8:06I would like to refer
- 8:08to the Oscars, 98
- 8:10Oscars happening this year.
- 8:12And strange enough, Oscars introduced
- 8:15a totally new category,
- 8:18best achievement in casting.
- 8:21So for decades,
- 8:23casting directors
- 8:24have really shaped the success of films
- 8:27from behind the scenes,
- 8:29balancing budgets,
- 8:31evaluating
- 8:32talent,
- 8:33managing trade offs, and building long term relationships,
- 8:37which make future production stronger.
- 8:41This work
- 8:42has always been essential,
- 8:44but largely
- 8:45invisible.
- 8:46That sounds very familiar. Right?
- 8:49Very much like supply chain and how we
- 8:52operate.
- 8:53The reason I brought the Oscars analogy, it's
- 8:57not always science. It's a little bit art.
- 9:01And
- 9:02in supply chain, we also plan meticulously.
- 9:05We work within constraints.
- 9:08We run RFPs,
- 9:09evaluate partners.
- 9:11But
- 9:12even we stay close to those vendors who
- 9:15are not selected,
- 9:17because resilience is really built over time.
- 9:21When it's done right,
- 9:22no one really notices.
- 9:24When it's missing,
- 9:26everyone stops.
- 9:28So to your question, I think what I
- 9:31am committed to do
- 9:33is
- 9:34similar to casting,
- 9:36which is finally getting its moment of recognition
- 9:39this year.
- 9:40I am committed. Supply chain is getting constantly
- 9:43getting that recognition in Dartmouth Health
- 9:47because not the industry
- 9:49is changing or
- 9:51not only it's going through transition.
- 9:54The work has always been perhaps the same
- 9:57way. It's been difficult. It's been challenging.
- 10:00Maybe we will not stand at the Dolby
- 10:02Theatre this year with fellow nominees,
- 10:05but our hearts will be fast
- 10:08for them to support.
- 10:10I am maybe like Francine Messier, who is
- 10:13the casting director for Sinners.
- 10:16Congratulations
- 10:17for the nominee.
- 10:19Nina Gold, like Hamnet, or Cassandra Kulukindez,
- 10:23one battle another, one battle after another,
- 10:26or Jennifer Banditti,
- 10:28who directed cast directed
- 10:30Marty Supreme.
- 10:32We have we share, I think, a history.
- 10:35We share the same background with all these
- 10:37guest directors as supply chain leaders.
- 10:40Now I know Dartmouth Health leadership
- 10:42appreciates its supply chain and the enterprise support
- 10:45services team,
- 10:47and they really support our transformation journey
- 10:50because they know behind every successful product or
- 10:54service, which are delivered on time
- 10:57at the right price,
- 10:58and precisely
- 11:00when or where it's needed.
- 11:02It's the Dartmouth Health supply chain team doing
- 11:05the hard
- 11:06and glamorous work
- 11:08that makes everything else possible
- 11:10as we continue to care for our patients.
- 11:14We embrace our communities.
- 11:16We explore and as we excel.
- 11:20I I love that parallel, Ada, that there
- 11:23there is no successful movie without a good
- 11:26casting director. There is no successful health system
- 11:29without
- 11:30supply chain leaders like yourself.
- 11:32So
- 11:33no longer essential but invisible coming into the
- 11:36spotlight, especially, of course, as you know, post
- 11:38pandemic and every all the lessons that that
- 11:41showed the health care industry in The US
- 11:43and now, of course, with all the tariff
- 11:45ongoing tariff policies.
- 11:47The the critical importance of you and your
- 11:49team,
- 11:50cannot be overstated. And and I know you've
- 11:53you've made the point that strong supply chain
- 11:56leaders,
- 11:57they maintain relationships even with vendors who who
- 11:59you might not select
- 12:01immediately, that that resilience is built over time.
- 12:04So
- 12:05how are you thinking about continuity planning, vendor
- 12:09diversification
- 12:09for Dartmouth,
- 12:11given this this ongoing disruption we're seeing in
- 12:14in global supply chains?
- 12:17It is constant communication,
- 12:20and it's collaboration
- 12:21with our clinicians and administrative leaders.
- 12:25Data
- 12:27is very important.
- 12:29Data is not the information.
- 12:32Data which is actionable.
- 12:34To be able to do that, there's a,
- 12:36an investment
- 12:38that goes along
- 12:39with, the people,
- 12:41with the processes, and technology, all hand in
- 12:44hand.
- 12:45We need to establish
- 12:47repeatable and reputable processes.
- 12:50It's key. Because without those processes, we will
- 12:53not be even ready to move forward in
- 12:56our digitalization
- 12:57journey. We will not be even ready to
- 13:00take advantage of AI as it comes generative
- 13:03AI.
- 13:04We are looking for,
- 13:06RPA, a lot of robotic process automation.
- 13:09Even to be able to do that, the
- 13:11processes should be robust,
- 13:13end to end documented,
- 13:15and clearly tested.
- 13:17People
- 13:18people side, I don't believe it's ever gonna
- 13:21go away.
- 13:22You need to have
- 13:24well trained,
- 13:25well committed
- 13:27team members to be able to make sure
- 13:29those processes work
- 13:31so that you exploit and take advantage of
- 13:34the technology.
- 13:35Last but not the least, it's a collaborative
- 13:37effort
- 13:38across all service lines, all clinicians and departments
- 13:42to stay
- 13:44committed to the standardized
- 13:46efforts.
- 13:48We need to focus on the continuum of
- 13:50care, the care variation,
- 13:53yet take advantage
- 13:55of our
- 13:56pricing,
- 13:58price parity across hospitals, across our members,
- 14:01and deliver the best
- 14:03back to our organization
- 14:04financially and operationally.
- 14:08It's fantastic advice. And in that vein, Ada,
- 14:10I would I would ask you, is there
- 14:12any final thoughts or or other bits of
- 14:14advice, summarizing advice you'd offer all the other
- 14:18health care leaders, supply chain leaders listening in
- 14:21from all over the country right now?
- 14:26From the bottom of my heart, I'd like
- 14:28to thank everyone who's
- 14:30contributing to health care,
- 14:32who is supporting communities
- 14:34and vulnerable
- 14:36patient populations.
- 14:37It is a heroic event. Almost every day,
- 14:40we wake up. We do our best
- 14:44to get that care to everyone
- 14:47who needs
- 14:48at the place, or at least to the
- 14:50closest proximity
- 14:52they need.
- 14:54I think we are all
- 14:56casting directors
- 14:57in health care who have worked relentlessly
- 15:00for years.
- 15:02Sometimes we get
- 15:05the attention or the light
- 15:07we need, sometimes not, but it doesn't matter.
- 15:10We do a heroic job for every day,
- 15:13so we should congratulate each other.
- 15:15I am truly proud
- 15:17to be a part of health care delivery,
- 15:20health care providers, enterprise support services, and supply
- 15:24chain. Thank you, Jacob.