Fall ForumNovember 10-11, 2010

Orlando, FL

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Antitrust Meeting Guidelines

Participation is voluntary – Participants should not discuss:

Current or future prices or costs of any product Future bids or upcoming specific business

opportunities Current or future strategic plans or marketing efforts

or pricing policies Specific Provider/Industry Partners or specific

Provider requirements; data to be discussed should be in composite form to conceal the identity of any specific member

The meaning of any price, cost or partner/IDN specific data

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What’s New at SMI

New Members

SMI In the News

Speaking and Leadership

Advocacy Update

Forum Focus

Board Update

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New Members - 2010

Advocate Health Care Children’s Hospital of

Philadelphia Fairview Health

Services FMOL Health System Kaiser Permanente Lifespan Sanford Health Texas Children’s University of Southern

California

Abbott Laboratories AtPar, Inc. BravoSolution BSN Medical, Inc. Cook Medical MediClick, Inc. Seneca Medical, Inc. TECSYS VUEMED, Inc. W.L. Gore & Associates

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SMI in the News

HPN Column on the spring Forum

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SMI in the News

AHRMM Supply Chain Strategies publications (summer & fall) – 2 part series on “Supply Chain Integration with Clinicians” (from an SMI Deeper Dive Team)

Modern Healthcare, July issue – Dennis Orthman quoted on data standards adoption challenges

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Speaking and Leadership

John Gaida (Texas Health Resources) and Tom Hughes (SMI) delivered an educational session entitled Creating Continuous Joint Value with Measuring Effective Relationships.

In a separate session Brent Johnson (Intermountain Healthcare), Keith Kuchta (Kimberly-Clark), and Dennis Orthman (SMI) spoke on Creating Strategic Partnerships.

The following SMI members also presented at AHRMM 2010:Dennis Black (BD) Michael Louviere (Baptist Health System)

Karen Conway (GHX) Jean Sargent (USC Health Sciences)

Phil Pettigrew (Denver Health) John Cunningham (Universal Health System)

Several other SMI member organizations were represented on the agenda as well including BJC HealthCare, Department of Defense, Johns Hopkins, North Shore Long Island Jewish, Novant Health, The Ohio State University Medical Center, Sisters of Mercy (ROi), Texas Children’s Hospital, and University Kentucky Healthcare.

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Speaking and Leadership

Dennis Orthman representing SMI… Pennsylvania Statewide Materials Management

Association Conference 2010 CIHL Projects Oversight Committee CIHL’s Gap Analysis between Retail and Healthcare

Projector Advisory Board GS1 Healthcare US Leadership Team 2011 GHX Supply Chain Summit Advisory Board World Congress Supply Chain Leadership

Conference Advisory Board Stonehill College guest lecture on Supply Chain

Innovations Stonehill College Supply Chain Curriculum Advisory

Committee

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Speaking and Leadership

AHRMM’s George R. Gossett Leadership Award goes to…

Jean Sargent – Director, Supply Chain

USC Health Sciences

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Speaking and LeadershipBellwether League - 2010 Award Recipients

Ted Almon Carter F. Blake Br. Ned Gerber George R. Gossett Frank Kilzer Michael Louviere Robert Majors Franklin J. Marshall Daniel E. Mayworm Foster G. McGaw Mark McKenna G. Gilmer Minor III Curt M. Selquist Donald G. Soth Louis Vietti 

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Speaking and Leadership

Joe Sheil, Director of Contracting at Beth Israel Deaconess Medical Center, named on the “Ten People to Watch” by Journal of Healthcare Contracting

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Speaking and Leadership

OSUMC named runner-up in HPN’s Supply Chain Department of the Year

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Speaking and Leadership

Multiple SMI members named to the

Gartner Top 25 Supply Chains selections

committee

Carol Stone, Bard James Olsen, Carolinas Florence Doyle, CHE Tom Egan, Medline Tom Harvieux, Sanford Health

  

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SMI’s Advocacy Program

Advocacy efforts initiated based on SMI Member feedback Spring 2009

Actions To Date:1. June 2009 – Formed Advocacy Committee:

Carl Manley Steve Gundersen Nancy LeMaster Charlie Colpo Tom Hughes Dennis Orthman

2. Engaged legal counsel – Ed Corriea3. Focus on data standards adoption

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SMI’s Advocacy ProgramActions To Date (cont):

4. August 2009 Letter to ONCHIT Blumenthal Industry improvement via data standards is clear. EHR value enhanced with supply data SMI Members represent critical mass for

adoption Requested meeting.

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5. June 2010 White Paper submitted to CMS

6. July 21, 2010 Meeting in Washington DC with Jonathan D.

Blum, Deputy Administrator and Director, Center for Medicare

Meeting topics: accelerating industry’s adoption of standards UDI’s impact on manufacturers creative funding possibilities

SMI’s Advocacy ProgramActions To Date (cont):

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7. September, 2010 Follow-up email includes invitation to attend SMI

Fall 2010 Forum CMS declines invitation

8. October, 2010 CMS contacts SMI, requests follow-up meeting Second meeting scheduled for December in

Washington DC with leadership from CMS

SMI’s Advocacy ProgramActions To Date (cont):

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Focus on our Fall Forum ’10

SMI’s Got Talent

Forum Guests

Special Thanks

Agenda

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Forum GuestsCollaborators Kris Russell – HPN Sarah Oaks – AHRMM Eric O’Daffer - AMR/Gartner Dewey Freeman – CIHL Manuel Rosetti, UARK Matt Rowan – HIDA Brad Pedrow – GS1 Healthcare

US

Guest Speakers Jamie Orlikoff – Orlikoff &

Associates Frank Trembulak - Geisinger Josh Feldstein –Marcom Group

International Christina Vernon - Cleveland

Clinic Lisa Molgren - UHS

Others Ed Correia – Correia &

Associates Michael Sykucki

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Forum Guests

Tom Nash – Ministry Health Care David Hargraves – University of Pittsburgh

Medical Center Mary Beth Lang – University of Pittsburgh

Medical Center

Larry Strauss – Boston Scientific Pete Castagna –Fisher Healthcare John Abele – Professional Hospital Supply

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Special Thanks

Member Forum Participants Deborah Petretich Templeton – Geisinger

Health System

Brent Johnson – Intermountain Healthcare

Tony Johnson – Novant Health

Joe Sheil – Beth Israel Deaconess Medical Center

John Cunningham – Universal Health Services

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Agenda – Day 1, November 108:00 – 8:30 Welcome – Tom Hughes, SMI

What‘s New at SMI?

8:30 – 10:00 Keynote ~ Futurist (Jamie Orlikoff)

10:00 – 10:30Break

10:30 – 11:45Taking on Reform – Frank Trembulak, Executive Vice President and COO & Deborah Petretich Templeton, Vice President, Supply Chain Services – Geisinger Health System

11:45 – 12:00Strategic Discussion Rounds Overview

12:00 – 2:00 pm Strategic Discussion Rounds – What can SMI do to Help Members with the Challenges of Healthcare Reform?

2:00 – 3:15 pm Value Based Purchasing: Health Economics IS a Strategic Decision – Josh Feldstein

3:30 – 5:00 pm Initiative/Project Breakout Sessions

Recall ManagementHealthcare Supply Chain UniquenessAccountable Care OrganizationsComparative EffectivenessSMI New Member Orientation

6:30 – 10:00 pm Reception / Dinner

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Agenda – Day 2, November 116:45 – 7:45 am Breakfast8:00 – 9:30 am SMI2U Breakout Sessions (choose one)

Green Initiatives – Christina Vernon, Senior Director, Sustainability and Environmental Strategy, Cleveland ClinicDeveloping Strategic Relationships - Brent Johnson, Vice President Supply Chain and Imaging Services, Chief Purchasing Officer, Intermountain HealthcareLeveraging the Supply Chain - Tony Johnson, Corporate Senior Vice President, Chief Supply Chain Officer, Novant HealthSustaining Superior Cost Performance Across the Organization - Joe Sheil, Director of Contracting, Beth Israel Deaconess Medical CenterA Clinically Integrated Supply Chain - John Cunningham, Vice President and Lisa Molgren, Corporate Director, Universal Health Services

10:00 a – 12:00 p General Session10:00 – 11:00Initiative/Project Updates

> Recall Management> Healthcare Supply Chain Uniqueness> Accountable Care Organizations> Comparative Effectiveness

11:00 – 11:20Recap of Strategic Discussion Rounds11:20 – 11:30Summation / Adjournment – Tom Hughes, SMI

Board Update

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Board Changes Exiting Board Members

Charlie Colpo, Owens & Minor Keith Kuchta, Kimberly-Clark Gary Wagner, The Methodist Hospital System

Incoming Board Members Keith Lohkamp, Lawson Carol Stone, C.R. Bard Deborah Petretich Templeton, Geisinger Health System

Executive Committee Chair – John Gaida, Texas Health Resources Treasurer – Steve Gundersen, BD Secretary – Jim Francis, Mayo Clinic Immediate Past Chair – Carl Manley, Sentara Healthcare Nominating Committee – Susan Schuette, Hill-Rom Membership – Armin Cline, Covidien

Strategic Discussion Rounds

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Who is SMI?

Founded and driven by our members Non-profit corporation established in 2005

Senior-level healthcare supply chain executives Representing providers and healthcare supply chain

industry partners including manufacturers and distributors of medical/surgical supplies, pharmaceuticals, major equipment, IT companies and service providers

United by our vision to: Influence positive change Shape future directions Advance the healthcare marketplace through

internal efficiencies and improvements

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Vision and Mission

Vision:

United in shaping an improved, more efficient healthcare supply chain

Mission:

Convene innovative leaders within the healthcare industry

Create a neutral, balanced, developmental, and mutually

beneficial environment

Develop solutions through small, intimate work groups

Produce results that solve real industry problems

Work for the benefit of the entire healthcare supply chain

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SMI Goals

Raise the bar for healthcare supply chain standards

Define and develop member-

driven solutions

Introduce and learn from non-

healthcare methods

Understand and appreciate risks

and challenges

Create opportunities

for the best exchange of

innovative ideas

Deliver tangible results and

demonstrate improvement

What can SMI do about Healthcare Reform?

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Session Outline

Breakout discussion groups2 hoursProvider & Industry Partners and guestsBoard member facilitatorsWhat can SMI do to Help Members with

the Challenges of Healthcare Reform?

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SMI Uniqueness

Non-profit organization Board equally comprised of provider and industry partners Committed to the industry at large - work for

the benefit of the entire healthcare supply chain (not limited to members only)

Provide SMI developed tools/outcomes to the industry free of charge

All members pay annual dues Convene select group of innovative leaders

and seasoned executives from within the healthcare supply chain

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Employ interactive meeting process with blend of general sessions, roundtable discussions, and small group work teams

Balance the needs of both providers and suppliers

Afford all members a distinct voice Committed to transformational change Member dues are only source of revenue Work teams are self-selected and self-

directed by members Member speaker bureau (SMI2U)

SMI Uniqueness

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SMI Uniqueness

Produce solutions to real problems within the industry

Collaborative effort between transactional trading partners from the various segments of the healthcare supply chain (providers, manufacturers & distributors, and service businesses)

Action-oriented Forums (not mere attendees) Provide full transparency to membership Recognize healthcare supply chain as a

competitive advantage Provider and industry partners work together

to successfully lower expenses associated with the healthcare supply chain

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Session Fundamentals

Remain targeted on SMI uniqueness – our ability to make a difference

Focus on tools and solutions

Be engaged…think freely and openly

Focus on the “what”…not the how – what impact can we have?

Suspend judgment until appropriate

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Process FlowStep 1Brainstorm issues / challenges of healthcare reform on the supply chain (20 – 30 minutes)

Step 2Revisit each idea; is there something SMI might be able to do? yes / no If yes, what? (20 – 30 minutes)

Step 3Rank top 5 (5 – 10 minutes)

Step 4For the top 5, determine: - if it would fit within the SMI vision-mission-goals - if it would be unique to SMI(5 – 10 minutes)

Step 5Recap sheet to Teri Gallagher

General Session Resumes at 2:00 pm

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Process Documentation

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Process Timeline

12:15 – 12:30 Moderator Intro/Overview12:30 – 1:00 Brainstorming - identify

issues/challenges of reform on the supply chain

1:00 – 1:30 What can SMI do?1:30 – 1:45 Rank Top 5

- fit within the SMI vision-mission-goals? - be unique to SMI?

2:00 General Session Resumes

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Altogether…

Help ensure that SMI is THE Healthcare Supply Chain place to be!

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Strategic Discussion Rounds - Luncheon Sessions

Group A Yellowtail A (LL)

Group B Yellowtail B (LL)

Group C Anemone (L2)

Group D Labrid (L2)

Group E Damselfish (L2)

Group F Fantail (L2)

Breakout Sessions1. Product Recall2. Uniqueness/Differences3. Accountable Care

Organizations4. Comparative Effectiveness5. SMI Orientation

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Product Recall Initiative

Team Leader :Steve Huckabaa, Kettering Health Network Spring 2010 : FDA proposed creation of a

joint workgroup of SMI, FDA, and HL7 professionals to explore/design the UDI database’s potential to address recall notification content and speed issues.

TODAY: Team completing standard template for notifications and will move to adoption.

Future FDA collaboration is hoped for.

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Industry Uniqueness/Differences

Team Leaders: 1. Rosalind Parkinson, OSUMC 2. Keith Johnson, Coloplast

Refined initiative scope and mission Prioritized supply chain focus areas Methodology via structured interviews CIHL “retail” project heavily engaged TODAY: Working to finalize interview

questions and to establish healthcare baseline

Help is needed to engage with other industry supply chain professionals

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Accountable Care Organizations Initiative

Team Leader: Deborah Templeton, Geisinger Health Industry Partner leader to be determined

Will launch via breakout session Voted by SMI membership Approach here is to keep SMI and its members at

forefront of reform changes to the industry External expertise to be sought Could result in multiple updates to members and

the industry.

NEW

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Comparative Effectiveness Initiative

Team Leader: John Cunningham, Universal Health Services Industry Partner leader to be determined

Will launch via breakout session Voted by SMI membership Approach here is to keep SMI and its members

at forefront of reform changes External expertise to be sought Could result in multiple updates to members

and the industry.

NEW

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SMI Orientation Designed for New members All about SMI

History Mission, Vision Governance How We Operate Collaborators Accomplishments Member Engagement SMI2U

NEW

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Breakout Sessions

Recall ManagementLabrid, level 2

Healthcare Supply Chain UniquenessAnemone, level 2

Comparative EffectivenessFantail, level 2

Accountable Care OrganizationsDamselfish, level 2

SMI OrientationYellowtail B, lobby level

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.comThursday Morning

8:00 – 9:30 am

Breakfast in Oceans 5, lobby level, back 6:45 – 7:45 am

Green Initiatives – Christina Vernon, Senior Director, Sustainability and Environmental Strategy, Cleveland ClinicLabrid, lobby level, back

Developing Strategic Relationships - Brent Johnson, Vice President Supply Chain and Imaging Services, Chief Purchasing Officer, Intermountain HealthcareOceans 1, lobby level, back

Leveraging the Supply Chain - Tony Johnson, Corporate Senior Vice President, Chief Supply Chain Officer, Novant HealthOceans 3, lobby level, back

Sustaining Superior Cost Performance Across the Organization - Joe Sheil, Director of Contracting, Beth Israel Deaconess Medical CenterOceans 4, lobby level, back

A Clinically Integrated Supply Chain - John Cunningham, Vice President and Lisa Molgren, Corporate Director, Universal Health ServicesOceans 2, lobby level, back

General Session – 10:00 am

Project Updates and

Initiative Breakout Sessions

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SMI Web Site UpdateKey Statistics

www.smisupplychain.com continues to serve as

key resource for our industry.

Volumes by Month

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www.smisupplychain.com

24 downloadable

resources are

now available at

no charge on the

web site.

Direct/Bookmark 71.60%Search Engines 23.40%Collaborators/Others* 4.80%*(GHX, AHRMM, others)

Connection From USA 76%Unknown 11%Canada 5%Europe 1%Greece 1%Japan 1%Others 5%

Country Breakdown - October 2010

3 2 2

2 1 3

2 2

2 1

4

SMI Web Site UpdateKey Statistics

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2977 SMI Tools and Solutions

distributed since June 2008

SMI Web Site Update Primary Distribution Vehicle

Who will be the.3000th ?

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GS1 Healthcare US and Data Standards

SMI is an official GS1 Healthcare US Advocate

SMI and Data Standards

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GLN Readiness Feedback Project•All SMI members received request for participation in June 2010.•Feedback via structured phone interview by KAS Consulting.•Participation was 72 of 86 (84%) SMI members.

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SMI and Data Standards

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Question: Will you meet/have you met the sunrise date for GLNs of Dec. 31, 2010?

Two out of three members surveyed reported that they will meet the sunrise date for GLN, December 31, 2010.

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SMI and Data Standards

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SMI GLN Implementation Workshop Response to member feedback project. Focus is on the details of “how-to” Organized into three sections:

1. Enumeration

2. Transactions (MMIS companies)

3. Hands-On/Ask The Experts

No registration fee. Attendees pay own travel. Faculty from:

OSUMC Sisters of Mercy/ROi O&M Inc.

Lawson McKesson Peoplesoft

GHX GS1 US SAP

SMI and Data Standards

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Industry-Wide GLN Implementation Workshop Partnership between SMI, AHRMM, and

GS1 US Healthcare. SMI session acting as pilot Objective is “mass adoption” Planning currently underway:

1. March 2011 is one target. Possibly others.

2. Central USA location – Dallas or Chicago,

3. Will include MMIS experts and hands-on/Ask The Experts emphasis

SMI and Data Standards

Breakout Sessions1. Product Recall2. Uniqueness/Differences3. Accountable Care

Organizations4. Comparative Effectiveness5. SMI Orientation

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Initiative Update

Product Recall InitiativeTeam Leader :Steve Huckabaa, Kettering Health Network Spring 2010 : FDA proposed creation of a

joint workgroup of SMI, FDA, and HL7 professionals to explore/design the UDI database’s potential to address recall notification content and speed issues.

TODAY: Team completing standard template for notifications and will move to adoption.

Future FDA collaboration is hoped for.

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Initiative Update

Industry Uniqueness/Differences InitiativeTeam Leaders:

1. Rosalind Parkinson, OSUMC 2. Keith Johnson, Coloplast

Refined initiative scope and mission Prioritized supply chain focus areas Methodology via structured interviews CIHL “retail” project heavily engaged TODAY: Working to finalize interview

questions and to establish healthcare baseline Help is needed to engage with other industry

supply chain professionals

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New Initiative

Accountable Care Organizations Initiative Team Leader:

Deborah Templeton, Geisinger Health Industry Partner leader to be determined

Will launch via breakout session Voted by SMI membership Approach here is to keep SMI and its members at

forefront of reform changes to the industry External expertise to be sought Could result in multiple updates to members and the

industry.

NEW

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New Initiative

Comparative Effectiveness Initiative Team Leader:

John Cunningham, Universal Health Services Industry Partner leader to be determined

Will launch via breakout session Voted by SMI membership Approach here is to keep SMI and its members at

forefront of reform changes External expertise to be sought Could result in multiple updates to members and

the industry.

NEW

ww

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SMI Orientation Designed for New members All about SMI

History Mission, Vision Governance How We Operate Collaborators Accomplishments Member Engagement SMI2U

NEW

Project Updates and

Initiative Breakout Sessions

ww

w.s

mis

up

ply

chain

.com

SMI Web Site UpdateKey Statistics

www.smisupplychain.com continues to serve as

key resource for our industry.

Volumes by Month

ww

w.s

mis

up

ply

chain

.com

www.smisupplychain.com

24 downloadable

resources are

now available at

no charge on the

web site.

Direct/Bookmark 71.60%Search Engines 23.40%Collaborators/Others* 4.80%*(GHX, AHRMM, others)

Connection From USA 76%Unknown 11%Canada 5%Europe 1%Greece 1%Japan 1%Others 5%

Country Breakdown - October 2010

3 2 2

2 1 3

2 2

2 1

4

SMI Web Site UpdateKey Statistics

ww

w.s

mis

up

ply

chain

.com

2977 SMI Tools and Solutions

distributed since June 2008

SMI Web Site Update Primary Distribution Vehicle

Who will be the.3000th ?

ww

w.s

mis

up

ply

chain

.com

GS1 Healthcare US and Data Standards

SMI is an official GS1 Healthcare US Advocate

SMI and Data Standards

ww

w.s

mis

up

ply

chain

.com

GLN Readiness Feedback Project•All SMI members received request for participation in June 2010.•Feedback via structured phone interview by KAS Consulting.•Participation was 72 of 86 (84%) SMI members.

68

SMI and Data Standards

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Question: Will you meet/have you met the sunrise date for GLNs of Dec. 31, 2010?

Two out of three members surveyed reported that they will meet the sunrise date for GLN, December 31, 2010.

69

SMI and Data Standards

ww

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up

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chain

.com

SMI GLN Implementation Workshop Response to member feedback project. Focus is on the details of “how-to” Organized into three sections:

1. Enumeration

2. Transactions (MMIS companies)

3. Hands-On/Ask The Experts

No registration fee. Attendees pay own travel. Faculty from:

OSUMC Sisters of Mercy/ROi O&M Inc.

Lawson McKesson Peoplesoft

GHX GS1 US SAP

SMI and Data Standards

ww

w.s

mis

up

ply

chain

.com

Industry-Wide GLN Implementation Workshop Partnership between SMI, AHRMM, and

GS1 US Healthcare. SMI session acting as pilot Objective is “mass adoption” Planning currently underway:

1. March 2011 is one target. Possibly others.

2. Central USA location – Dallas or Chicago,

3. Will include MMIS experts and hands-on/Ask The Experts emphasis

SMI and Data Standards

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Future Forums

2011

May 10-12 Dallas

November 8 – 10 Orlando

2012

May 15 – 17 Dallas

November 6 – 8 Phoenix

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Summation

Please complete your evaluation and turn it in as you exit, or leave it on the table – your feedback is important to us!

Future Forums May 10-12, 2011 in Dallas November 8-10, 2011 in Orlando May 15-17, 2012 in Dallas November 6-8, 2012 in Phoenix

Comments / Questions?