Hawai'i-Pacific Chapter
A quarterly e-newsletter for the Hawai'i Pacific Chapter of ACHE Winter 2018 Vol. 4
In This Issue
Messages from Chapter Leadership
Message from the Regent
Message from the Chapter President
Diversity and Delivery of Healthcare Services: A Journey
Articles of Interest
Sales Representatives in Healthcare: Partnering to fill a need for Healthcare Organizations
The Importance of Laboratory Test Utilization Management
Calendars and Recent Events
2018 Leadership in Action Conference
Calendar of Events
Calendar of Educational Events
News & Committee Updates
News from the Education Committee
News from the Guam Local Program Chapter
Student Corner
Membership Report: New Fellows, Members, and Recertified Fellows
ACHE Resources
ACHE National News
Career Corner
Ensure delivery of Chapter E-newsletter (Disclaimer)
Thank you to all our Sponsors for 2018!
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As a healthcare executive, which sector community leader are you most interested in engaging with and hearing from?
Social Services
Community Housing



Gidget Ruscetta, FACHE

Micah Ewing, MBA, FACHE

Nick Hughey, RN, MBA, FACHE 

Chuck Tanner, FACHE

Suzie So-Miyahira

Emiline LaWall, MA


Josh Carpenter | Education

Sally Belles | Communications

Bobbie Ornellas, FACHE | Diversity

Nick Hughey, FACHE | Sponsorship


Travis Clegg

Andrew Giles

Laura Bonilla

Ryan Sutherland



Denise Della

Articles of Interest
Sales Representatives in Healthcare: Partnering to fill a need for Healthcare Organizations
Kenny Morris, MBA-HCM

In this multi-part series, we will be exploring the role and value of sales representatives in the healthcare space as well as ways that healthcare organizations can better partner with their local sales force to help drive positive outcomes at the bedside. 

Part II:  The most expensive product is the one that doesn’t work. 

Healthcare facilities are different than other business entities – they treat and prevent disease, alleviate pain and suffering while often defying death itself, yet are still at the mercy of the same economic, financial and market forces that impact traditional businesses.  While life and health are priceless, the products and services employed to preserve and protect them are unfortunately not free.  Further compounded by healthcare payment models emphasizing pay-for-performance and the threat of reimbursement reductions related to hospital value-based purchasing, this presents a unique challenge for healthcare facilities of balancing costs with potential benefits to patients and staff.  Because of this, understanding how products and services impact both the clinical and financial well-being of the healthcare facilities is essential.

The most expensive product is the one that you purchase which doesn’t work. 

What I mean by this is even the smallest product in the patient care setting has a purpose and drives an outcome.  These outcomes - patient safety and experience as well as staff efficiency, safety and satisfaction relate to larger costs than just the frontline purchase price of the intervention (think: treatment of nosocomial infections and conditions, Value Based Purchasing reimbursement reductions, workman’s compensation claims etc vs. the actual cost of the product itself).  For these reasons, an effective means of measuring and analyzing the costs and benefits associated with both new and existing products and services is essential to patients, staff and the financial bottom line. 

This measurement and validation of products and services currently takes many forms though most current systems focus on the introduction of new or updated products and interventions.  Some larger organizations and integrated delivery networks have assembled ‘value analysis’, ‘standardization’ or ‘products’ teams comprised of clinical and non-clinical staff to trial and vote on new products that are added to corporate contracts and formularies.  Smaller facilities may have small groups or even individuals making product decisions. 

These groups, though essential and very often well-run, are innately prospective in nature and very rarely have the time, resources or access to data to measure the post-implementation efficacy of the products they approve.  For example, a value-analysis group may approve the implementation of a new, lower cost hypodermic safety needle without ever knowing if the product has an impact on needle-stick injuries or the cost of any increase that was observed.  Similarly, a standardization team could approve the use of a new patient clinical chair without ever knowing if it has an effect on patient falls or pressure injuries, staff efficiency and injury or even linen use and the associated costs of each.  While there may be a well understood frontline cost savings associated with the cost of the actual product, the overall return on investment or cost avoidance connected with the implementation is often not fully understood.  Combined with the need to monitor utilization of disposables, compliance to protocol, education and training, and waste reduction (not to mention everything else) it’s no surprise that few organizations have the resources in their purchasing and supply chain management departments to measure the impact of the interventions that they implement.

Often the responsibility of measuring clinical outcomes falls to quality, patient safety, or performance improvement groups within the facility who are siloed away from product decision making teams and frequently scrutinize outcome metrics independent of product utilization data. 

This is where an opportunity exists for local sales representatives to bridge the gap between product, outcome and financial and utilization data to provide a comprehensive representation of whether or not their products are working as intended.  While healthcare organizations are held accountable to quality and patient safety standards, so too should the products and services that they employ.  In finding new and innovative ways to incentivize sales representatives to work with internal stakeholders and provide concrete data on how their products are driving positive outcomes, healthcare facilities will be more able to ensure that the products they purchase are working as intended.


In the next installment of this series, we will discuss strategies for deploying sales representatives with internal stakeholders to collect and manage data relating to product efficacy.

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