AHRMM eNews
January 26, 2016
  
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AHRMM NEWS
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AHRMM NEWS
1. Using Data to Increase Clinicians’ Product Cost Awareness
The Massachusetts General Hospital leadership team will share how they used data capture to assess supply use and how they changed the culture in their hospital to be more cost aware. They will also examine the hurdles they encountered and how they addressed each along the way so you, too, can instill a financial mindfulness in your facility.
 
Date: Wednesday, March 2, 2016
Time: 12:00 - 1:00 pm CT; 1:00 - 2:00 pm ET
Cost: $99 (AHRMM Members), $149 (Non Members)
CPE: 1
Speakers: Bethany Daily, Senior Administrative Director, Perioperative Services, Massachusetts General Hospital and Stephanie Weilert, Manager, Perioperative Business Services, Massachusetts General Hospital
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2. Social Media Survey Closes Tomorrow - Last Chance to Win a Free AHRMM16 Registration
AHRMM is conducting an important Digital and Social Media Usage Survey which will help us further strengthen the value of your membership by better understanding how members use social and digital media.  
 
As an incentive for your participation, members who complete the survey will be entered into a drawing for a chance to win a FREE registration for the 2016 AHRMM Conference.*  
 
The survey should only take 5-10 minutes to complete and consists of 28 multiple choice questions and 1 open-ended question.
 
Survey closes on January 28, 2016.
 
We are grateful for your participation!
 
* NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINING. ODDS OF WINNING WILL DEPEND ON THE TOTAL NUMBER OF ENTRIES RECEIVED. VOID WHERE PROHIBITED BY LAW. ONLINE ENTRY ONLY AND INTERNET CONNECTION REQUIRED. Sweepstakes only open to AHRMM Members who are residents of the 50 U.S. or D.C., 18 years and older. Sweepstakes begins on or about 01/07/2016 at 9:00 am Central Standard Time (CT) and ends at 5:00 pm CT on 01/28/2016. ARV of all prizes: $700.00. Subject to full Official Rules at www.ahrmm.org/survey-sweepstakes-rules. Sponsor: Association for Healthcare Resource & Materials Management.
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3. Alarm Fatigue and Continuing Education Podcasts
AHRMM Podcasts are a free and quick resource for individuals interested in hearing more on relevant healthcare supply chain topics. 
  
Two podcasts are now available and AHRMM will launch additional podcasts throughout 2016:
  • Alarm Fatigue and Supply Chain's Role in Preventing It  
     
  • Continuing Education and Earning Your CMRP 
Visit http://learning.ahrmm.org/podcasts to access the podcasts.
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4. Term of the Week
Relative value units (RVUs) are a measure of value used in the United States Medicare reimbursement formula for physician services. RVUs are a part of the resource-based relative value scale (RBRVS). Before RVUs were used, Medicare paid for physician services using "usual, customary and reasonable rate-setting which led to payment variability. The Omnibus Budget Reconciliation Act of 1989 enacted a Medicare fee schedule, and as of 2010 about 7,000 distinct physician services were listed. The services are classified under a nomenclature based on the Current Procedural Terminology to which the American Medical Association holds intellectual property rights. Each service in the fee schedule is scored under the resource-based relative value scale (RBRVS) to determine a payment. 
 
Take a moment to peruse AHRMM’s Healthcare Supply Chain Lexicon. Do you have a term to suggest to make this a more robust and valuable resource? If so, click here. We’ll provide the definition if you provide the term!
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INDUSTRY NEWS
5. CMS Releases Changes to Medicare EHR Incentive Program Hardship Exception Process
On January 22, the Centers for Medicare & Medicaid Services posted updated hardship exception applications for eligible hospitals, critical access hospitals and providers participating in the Medicare Electronic Health Records Incentive Program. According to the agency, the new applications are more streamlined and reduce the amount of information required. The Patient Access and Medicare Protection Act gave the Secretary of Health and Human Services the authority to create hardship exception applications for categories of providers; previously, exceptions were considered on a case-by-case basis. Eligible hospitals and CAHs can submit applications through April 1; eligible professionals must apply by March 15.
 
For more, see the CMS website.
 
Source: AHA News Now – January 22, 2016
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6. CMS Issues Final Rule for Medicaid Drug Rebates, Reimbursement
On January 21, The Centers for Medicare & Medicaid Services published its long-awaited final rule implementing Affordable Care Act changes to the Medicaid Drug Rebate Program and Medicaid reimbursement for covered outpatient drugs. According to CMS, the rule creates a regulatory definition for Average Manufacturer Price, the key metric for determining manufacturer rebates and pharmacy reimbursement for certain generic drugs in Medicaid. It also clarifies what constitutes a manufacturer’s “best price” and the definitions of “retail community pharmacy” and “wholesaler.” These definitions are important to calculating and reporting drug product and pricing information, and setting ceiling prices for the 340B Drug Pricing Program. The rule also codifies an ACA provision extending the Medicaid rebate to covered outpatient drugs provided to Medicaid managed care enrollees. CMS estimates the final rule, which takes effect April 1, will save the federal government and states an estimated $2.7 billion over five years. The rule will be published in the Feb. 1 Federal Register, with comments on certain provisions accepted for 60 days.
 
Source: AHA News Now – January 22, 2016
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7. FDA Releases Final Guidance Document on Devices Labeled as Sterile
The U.S. Food and Drug Administration issued final guidance document, "Submission and Review of Sterility Information in Premarket Notification (510(k)) Submissions for Devices Labeled as Sterile". Its recommendations seek to ensure that manufacturers incorporate adequate sterilization methods for 510(k) devices labeled as sterile and provide appropriate documentation and information to the FDA for premarket review for established and novel sterilization processes.
 
Source: HPN Daily Update – January 21, 2016
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8. FDA Issues Draft Cybersecurity Recommendations for Medical Device Makers
The Food and Drug Administration issued a  draft guidance for medical device manufacturers on monitoring, identifying and addressing cybersecurity vulnerabilities in medical devices after they enter the market. The draft guidance is part of the FDA’s ongoing efforts to ensure the safety and effectiveness of medical devices, at all stages in their lifecycle, in the face of potential cyber threats.
The FDA encourages public comments on the draft guidance, which will be open for 90 days. 
 
Source: AHA News Now – January 19, 2016
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9. AHA Issue Brief Looks at Bundled Payment Initiatives
The Centers for Medicare & Medicaid Services’ Bundled Payment for Care Improvement and Comprehensive Care for Joint Replacement initiatives will be important tests of how well Medicare bundled payment efforts can encourage hospitals, physicians, and post-acute care providers coordinate care to lower spending and improve quality and the patient experience, according to an issue brief released on January 19 by the AHA.
 
This issue brief describes the evolution of bundling within the Medicare program; the opportunities bundling creates for hospitals and post-acute care providers; the challenges providers have encountered in recent initiatives; the issues providers should consider when entering a bundled payment program; and policy considerations associated with a broader expansion of bundling initiatives in Medicare.
 
Source: AHA News Now – January 19, 2016
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10. Free Webinar Provided by USDM: What UDI Means for Healthcare
The intent of the UDI Rule is multi-purpose with the end result focusing on the patient. The traceability of products from manufacturer thru to distributor into receiving dock and to the patient is essential to achieve the benefits of UDI at the provider level. To enable this process, multiple solutions must be considered. Information systems within each of the segments must have the capabilities to capture and transact with UDI data. Senior leadership, clinicians, information technology, all staff within each organization must understand the importance of this paradigm shift. This webinar will describe the importance of the changes and the steps to be taken in order to achieve success.
 
Date: Thursday, January 28, 2016  
Time: 1:00 - 2:00 pm CT; 11:00 am – 12:00 pm PST
Cost: Complimentary 
CPE:
Speakers: Jean Sargent, Vice President, Business Development, USDM
 
 
 
Learning Objectives: 
  • Define traceability from manufacturer to billing
  • Define system requirements for success
  • Understand Internal vs. External processes
  • Understand who the program owners are
  • Define the role of master data management
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FEATURED PRODUCT
11. AHRMM Request for Proposal (RFP) Library
The AHRMM RFP Library offers exclusive access to various RFPs that have been shared on the AHRMM Member ListServ or submitted via email to the ARHMM inbox.  
 
This resource is for AHRMM members only and has been archived online for your continuous use and convenience.
 
If you have an RFP you wish to add to the RFP Library please send to ahrmm@aha.org. Please remove any contact information or details you would not like shared prior to submitting.
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The Association for Healthcare Resource & Materials Management (AHRMM) of the American Hospital Association is the leading national association for executives in the healthcare materials management profession. Founded in 1962, AHRMM prepares its more than 4,200 members to contribute to the field and advance in the profession through networking, education, recognition, and advocacy. AHRMM continues its commitment to keep members ahead of the learning curve by providing information and resources to not only assist them in their current positions, but also to prepare them for upcoming challenges and opportunities. Please email us at ahrmm@aha.org or call (312) 422-3840 if you need additional information on these stories or any of AHRMM's products and services.

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