eHealth Procurement

Tom Boyle

Co-Chair European Connected Health Campus

(VP Market Development, CA Inc.)

Agenda

• What is Procurement

• The problem with Procurement

• The Challenge of Harmonization

• Where to look for help

Procurement

• The fine art of purchasing goods and services at

the most cost effective price, while assuring that

delivered goods provide optimal value

• With Special Considerations:

• Total cost of ownership

• National Policy & Priorities

• Managing SLA’s

• Supplier Sustainability

• Deference to national suppliers

• Supply chain

• Quality metrics

• Time of year/budget cycle

• Standards compliance

• Material sourcing

• Risk assessment

The Problem with Procurement

“85 per cent of expenditure is spent on external

providers yet sourcing is highly fragmented, and

procurement is decentralised and uncoordinated.

Existing contracts focus on inputs rather than end-

to-end accountabilities for business outcomes

[and] sourcing acts as a bottleneck, hindering the

delivery of business outcomes.”*

*Defence Information and Communications Technology Strategy 2009 report

The Problem with ICT Procurement

• Lack of alignment between:

• Procurement Agency

• Requestor

• End User

• Conflicting Goals

• Processes are complex

• Decision making is occasionally obscure

• Prioritization is malleable

• End user/requestor disassociated from the final process

• Application experience lacking with Procurement Agent

• Vision vs. Practicality/Today vs. Tomorrow

HarmonizationThe Problem of Square Pegs and Round Holes

• Needs Based

• Application Knowledge

• Vendor Relationship

Requisitioner

• Budget Allocation

• Timeframe Prioritization

• Strategy Alignment

Approval• Cost Analysis

• Preferred Vendor List

• RFP Process

• Lease vs. Buy

Purchasing Agent

Operations

•Deployment•Support•Training

Clinical

• Workflow

• Clinical review

• Clinical Response

Admin • Record Keeping

• Communication

• Systems Integration

For Instance

1) Which of these components is an integral part of an eHealth System?

A) Computers

B) Communications

C) Networks

D) None of the Above

E) All of the Above

2) Which of these components is an eHealth System?

A) Computers

B) Communications

C) Networks

D) None of the Above

E) All of the Above

Multiple technologies = Multiple Vendors

Building an Ecosystem

• Requirement for eHealth solutions

• The more complex the solution, the more complex the

procurement process

• Current procurement processes built around

“point” purchases

• Who owns coordinating the vendors?

• Who owns integrating the technologies?

• Standards (e.g., Continua) start to help

2 Major Challenges

• Current procurement processes typically focus on

one element w/in the solution

• Greater issue for Public entities than private

• Government Agencies must engage at start of the

process to understand Procurement Procedures

• Critical to understand the Budgeting Cycle

• Current Procurement Processes typically are for

“standard” items

• Systems aren’t designed for Procurement of Innovation

• ICT Work programme for 2011-12 proposes areas of

focus including addressing Procurement processes

A Shameless Plug

Help is on the Way

• European Connected Health Campus (www.ECHCampus.com)

• Creating exchange forums for procurers, vendors,

and users

• Working to develop “best in class” standard

procedures for procurement

• Evaluating current RFP’s for “use case” standards

• Providing educational opportunities for ecosystem

participants

• Developing educational forums for all participants

THANK YOU