July 7, 2015
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1. Meet the Candidates – AHRMM 2015 Board Election
Meet the candidates for the 2015 election! For the term beginning on January 1, 2016, there are three healthcare provider seats open. Who gets elected is determined by those who participate! Your participation is vital to the continued success of the Association. Please review the candidate profiles and personal flyers to make an informed decision when it is time to vote.
AafedtDarcy_75x100.png Darcy Aafedt, CMRP, FAHRMM
Supply Chain Decision Support Sr. Manager
Banner Health
KuhnMichelle_75x100.png Michelle Kuhn
Senior Supply Chain Analyst
Lutheran Health Network
ChungJimmy_75x100.png Jimmy Chung, MD
Director, Medical Products Analysis
Providence Health & Services
MannHoward_75x100.png Howard G. Mann, CMRP
Vice President, Supply Chain Management
Cardiovascular Care Group
DailTeresa_75x100.png Teresa L. Dail
Chief Supply Chain Officer
Vanderbilt University Medical Center
MatthewsBob_75x100.png Bob Matthews, CMRP
Assistant Vice President Supply Chain
Albany Medical Center
HayasRandy_75x100.png Randy Hayas, CMRP
Chief Supply Chain Officer
Orlando Health
RakesGary_75x100.png Gary Rakes, CMRP
Associate Vice President, Supply Chain Operations 
Providence Health & Services
Voting for the 2016 Board of Directors kicks off on August 10, 2015 and ends on August 24, 2015. The voting process is quick and convenient. Voting takes place online via a secure website. The link to the voting site and election ballot will be sent in an email to all members on August 10.  AHRMM15 attendees can also cast their vote on-site at the conference. 
Visit www.ahrmm.org/Elections to learn about AHRMM Board qualifications and view the 2015 election schedule.
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2. Explore How Supplier Diversity Can Be a Valuable Investment Toward Sustainability
Supplier Diversity: A Strategic Value Proposition
Join AHRMM on August 4 for this live event covering the importance of supplier diversity.  The first step will focus on defining supplier diversity and the associated specific designations.  Participants will then travel through time for a view of the evolution of supplier diversity. The next stops on the journey will include a glimpse into how to build a business case for supplier diversity including the scope and benefits (CQO and Sustainability) for the supplier and purchaser, as well as the importance of executive support.  
Date: Tuesday, August 4, 2015
Time: 2:00 pm - 3:00 pm CT; 3:00 pm - 4:00 pm ET
Cost: $79 (AHRMM Members), $129 (Non Members)
CPE: 1
Speaker: Todd Gray, Director, Supplier Diversity, Grady Health System
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3. Improving Data Visibility and Clinical Performance – July 30
Reducing Healthcare Costs through Supply Chain Automation and Standardization
By leveraging automation to reduce variation in clinical and supply chain practices, healthcare executives can make measurable improvements in their bottom line, while improving visibility to data to improve clinical performance. In this webinar, members of the AHRMM Cost, Quality, and Outcomes (CQO) Movement share best practices from healthcare systems across the country that you can deploy to help improve your organization's clinical and financial performance.
Date: July 30, 2015
Time: 12:00 pm - 1:00 pm CT; 1:00 pm - 2:00 pm ET
Cost: FREE
Speakers: Karen Conway, CMRP, Executive Director, Industry Relations, GHX
Michael Schiller, CMRP, Senior Director, Supply Chain, AHRMM
This webinar is presented in cooperation with  
Executive Insight
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4. Term of the Week
ONC: The Office of the National Coordinator of Health Information Technology, a federal agency that regulates and standardizes health technology for use in the U.S. It was founded in 2004 when the medical industry began to incorporate digital record-keeping.
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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5. Medicare Announces Initial Claims Auditing/Quality Reporting Flexibility for ICD-10
For 12 months after ICD-10 implementation, physicians and other practitioners who bill Medicare under the Part B physician fee schedule will not have claims denied by Medicare review contractors based solely on the specificity of the ICD-10 code if they use a valid ICD-10 code from the correct family of codes, the Centers for Medicare & Medicaid Services announced yesterday. They also will not be subject to the Physician Quality Reporting System, Value Based Modifier, or Meaningful Use penalty for program year 2015 during primary source verification or auditing related to the additional specificity of the ICD-10 diagnosis code, the agency said. In addition, CMS said it will establish an ICD-10 monitoring center and ombudsman to will work with its regional offices to address physicians’ concerns, and allow Medicare physicians and suppliers to apply for an advance payment if Part B contractors are unable to process claims within established time limits. CMS and the American Medical Association announced the guidance as part of their efforts to help physicians prepare for ICD-10. Healthcare claims must include ICD-10 codes for medical diagnoses and inpatient hospital procedures beginning Oct. 1. For more on the transition to ICD-10, visit www.aha.org or www.cms.gov.
Source: AHA News Now – July 6, 2015
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6. CMS Issues Infographic to Help with Transition to ICD-10
A new infographic from the Centers for Medicare & Medicaid Services outlines five key steps for healthcare providers transitioning to ICD-10: make a plan, train staff, update processes, talk with vendors and health plans, and test systems and processes. The infographic includes links to associated resources, and can be posted online and shared on social media. Healthcare providers and others must include ICD-10 diagnosis and procedure codes on Medicare and other health care claims beginning Oct. 1. For more on the transition to ICD-10, visit www.aha.org or www.cms.gov.
Source: AHA News Now – July 6, 2015
More on ICD-10: Check out the AHRMM eLearning course, ICD-10 Reform - Strategic Enabler.  Identify what ICD-10 means to your organization including the impact on reimbursement and value based purchasing, ACO development, gaps in documentation, and the impact to quality reporting.
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7. CMS Releases OPPS, ASC Proposed Rule with Changes to Two-Midnight Policy
On July 1, the Centers for Medicare & Medicaid Services issued a proposed rule for calendar year 2016 for the hospital outpatient prospective payment and ambulatory surgical center payment systems. Under the rule, there would be a net decrease in OPPS payments of 0.2%. This net decrease largely results from a proposed 2.0 percentage point cut intended to account for CMS’s overestimation of the amount of packaged laboratory payments under the OPPS for laboratory tests that were previously paid under the Clinical Laboratory Fee Schedule. AHA Executive Vice President Rick Pollack expressed disappointment with the negative update, saying AHA was “dismayed that miscalculations by the actuaries are resulting in penalties to hospitals and the patients they care for” and urged CMS to reevaluate the actuaries’ estimates. In addition, CMS proposes to alter its two-midnight policy so that certain hospital inpatient services that do not cross two midnights may be appropriate for payment under Medicare Part A if a physician determines and documents in the patient’s medical record that the patient requires reasonable and necessary admission to the hospital as an inpatient. CMS does not propose any changes for stays that are expected to last more than two midnights. The agency also proposes changes to the related enforcement requirements, proposing to use Quality Improvement Organizations to conduct first-line medical reviews of the majority of patient status claims rather than Medicare Administrative Contractors or Recovery Audit Contractors, which would focus only on those hospitals with consistently high denial rates. However, CMS does not propose to reverse the 0.2% payment cut associated with the two-midnight policy. Pollack called the proposals a “good first step,” saying hospitals “appreciate today’s proposal to maintain the certainty that patient stays of two midnights or longer are appropriate as inpatient cases.” However, he expressed dismay that CMS did not propose to withdraw the 0.2% cut and urged the agency to extend the partial enforcement delay beyond Sept. 30. 
Source: AHA News Now – July 1, 2015
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8. Improving Hospital Discharge Transitions – Your Input is Needed by July 31
AHA/HRET is collaborating with the Project ACHIEVE team, which is evaluating the effectiveness of transitional care. 
An important part of the project is surveying hospitals across the U.S. to catalog efforts at improving hospital discharge transitions. We strongly support the efforts of Project ACHIEVE and believe the findings from it have the potential to help us, patients, caregivers, and providers. 
Below is a link to the survey, which is housed on a secure server.  
This survey should take about 15 to 20 minutes, and someone at your hospital in case management, quality improvement, or administration would likely be the best person to do this, with help from clinicians (i.e., nurses, pharmacists, physicians). We ask that you complete this survey by July 31, 2015. If you have any questions, please contact Marie Cleary-Fishman at mfishman@aha.org.  
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9. July/August Supply Chain Strategies & Solutions Digital Edition is Now Available
The AHRMM magazine, Supply Chain Strategies & Solutions, is one of the premier benefits and resources of being an AHRMM member. Published six times a year, this publication provides up-to-date information on the latest healthcare supply chain trends, best practices, case studies, and Association activities.  
Check out the latest July/August issue online.  Not receiving your bi-monthly Supply Chain Strategies & Solutions magazine in the mail? Contact AHRMM at ahrmm@aha.org or (312) 422-3840 and confirm your primary mailing address.
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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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