Healthcare Matters

Intermountain Healthcare (Intermountain) is a non-profit healthcare system and is the largest healthcare provider in the Intermountain West (Utah and Idaho). From 2000 thru 2005, Intermountain Healthcare was ranked the number 1 integrated healthcare system in the U.S. –and for most of the rest of the decade, it was ranked number 2. It is headquartered in Salt Lake City and currently operates 23 hospitals with more than 32,000 employees. LIke several of the “big boys,” Intermountain has its own health insurance company (Selecthealth) that holds close to a 20% share in its market.

The system’s SCM practice has long been regarded as top drawer. It competitively bids most of its demand (contracts directly with manufacturers) and spends more than $1.3 billion a year on supplies, so its SCM leadership reputation shouldn’t be much of a surprise. And it’s newest supply chain investment, a 327,000-square-foot medical distribution center and warehouse, is expected to further improve its performance.

The goal of the new facility is to support an operation standard that guarantees that an order placed by the floor of a hospital or a clinic at 3 p.m. one day is in the hands of caregivers by 7 a.m. the following day.

The highly automated facility, officially opened during ceremonies yesterday afternoon, will house ordering, purchasing, warehousing and distribution functions for more than 5,000 types of medical supplies. An estimated 2.5 million medical items are expected to pass through the facility each year.

As you would expect, the facility is strategically located relative to the hospitals it serves. It is built to “unshakeable standards,” and from a materials management perspective, specifically in warehousing and distribution logistics, is a showcase for industry best practices.

—Tom Finn