Similar to nearly all healthcare systems across the country, HonorHealth has been facing strong, financial headwinds which are expected to persist well into 2023. The increased financial strain is multifactorial, but primary drivers include large escalation in labor costs, as well as higher-than-normal inflation in supply costs.

Concurrently, our value analysis teams continue to see an influx of new product requests from all procedural areas. The reality is that most new product additions increase our procedural costs.

Due to our current financial environment, the Supply Chain Governance Committee has voted to implement a moratorium on all requests for new products and new vendors. This moratorium became effective on Thursday, Dec. 1, 2022. It will be evaluated again at the end of the first quarter of 2023.

If there is an urgent clinical need that is not addressed with our current contracted items, an exception request can be submitted to Supply Chain. Exception requests received from a supplier will not be considered; it must come internally within HonorHealth. For the periop service line, submit requests to Terrence Peloza at [email protected]. For our nursing, interventional radiology and cardiovascular service lines, submit requests to Heide Pries Charron at [email protected]. Lab service line requests should be submitted to Jeremy Samuelson at [email protected]. Terrence, Heide and Jeremy will collect the necessary information and prepare it for review.  The exception request will be reviewed and evaluated by the Executive Sub-Committee of the Supply Chain Governance Committee. This Executive Sub-Committee consists of the following leaders:

• John Neil, MD, EVP, chief physician executive and network strategy officer
• Kim Post, EVP, chief operations officer
• Stephanie Jackson, MD, SVP, chief clinical officer
• Frank Moussa, MD, medical director, surgery / SCM
• Mark Dozier, AVP, strategic sourcing and engagement

Please note: This moratorium does not apply to substitute products that are brought in due to product recall and backorder circumstances.

In addition to the moratorium on product/vendor additions, we encourage all of you to look for other ways to create greater economic efficiency for our community health system, including:

• Committing to hosting no-cost or low-cost holiday celebrations. For example, potlucks, picnics, team building with small gift exchanges, toys-for-tots programs, etc.
• Avoiding any new consulting fees, vended services or other non-essential expenses unless it provides cost savings.
• As you plan and prepare for 2023, think about the following:
  • What can we stop doing that has limited value and expends valuable resources?
  • Is it something that could be implemented enterprise-wide?
  • Are there streamlined process changes you can help implement?

Please share your thoughts here.

We appreciate the understanding and support of our physicians, other clinical providers and our administrative leadership. We will continue to communicate any updates over the next few months. Thank you for your engagement in this process, and as always, we would like for you to share this broadly with your teams.