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10/27/2016

10/27/2016


VA Streamlining Process for Medical/Surgical Purchases

Changes will improve efficiency, supply management, and bottom line.

WASHINGTON – The Department of Veterans Affairs (VA) is taking a major step toward system improvement in the processes used to purchase medical and surgical supplies. VA is significantly enhancing the Medical/Surgical Prime Vendor (MSPV) program by replacing it with the Medical/Surgical Prime Vendor - Next Generation (MSPV-NG) program.

MSPV-NG purchasing capability greatly improves VA’s supply chain and aligns directly with VA Secretary Robert McDonald’s 12 Breakthrough Priorities designed to transform VA into a Veteran-centric organization of excellence.

“Similar to VA’s successful pharmaceutical purchasing and distribution program, MSPV-NG aims to improve acquisition planning, sourcing, and delivery, which will allow the organization to benefit from the best pricing, timely access to supplies, and waste reduction,” said McDonald.

By standardizing processes, VA’s MSPV-NG program reduces excess inventories and leverages VA’s purchasing power. The program increases the involvement of clinicians in sourcing products, giving them direct input in selecting supplies that can be used across VA medical centers and clinics. Medical, surgical, dental, and select prosthetic and laboratory supplies will now be available at nationally negotiated rates. This benefit, along with flexible delivery options, positions VA to address critical medical and surgical supply needs, ultimately improving the quality of care for the Veterans we serve. The MSPV-NG program launches across all VA facilities December 1, 2016.

MSPV-NG will streamline VA’s purchases by working through four Prime Vendors. Contracts have been awarded to: American Medical Depot, Cardinal Health, Kreisers, and Medline. These vendors will align across VA’s five regions for more flexible delivery options and will have the ability to make multiple deliveries per delivery location.

The new program streamlines ordering, tracking, and procurement methods of medical and surgical supplies by providing an efficient, cost-effective, just-in-time distribution process. In 2016 to date, VA’s supply chain transformation initiatives have saved $91.8 million. This figure is projected to increase significantly by the end of the calendar year.

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