The Senior Vice President, Chief Resource Officer (CRO) will be responsible for setting the organization’s strategic priorities for resource stewardship, with a primary focus on non-labor spend. The CRO will be responsible for establishing, implementing, and maintaining a structure for resource stewardship across the health system, ensuring appropriate value and equity – in terms of clinical, financial, or operating outcomes – for every dollar spent by the organization.
Reporting to the Chief Financial Officer, the CRO will have a broad set of responsibilities which will include implementing the mission and vision for resource stewardship across the system. Serving as a key member of the leadership team, he/she will partner with the Chief Financial Officer and Chief Operating Officer to architect and drive a comprehensive change management initiative aimed at establishing a continuous focus on resource stewardship across the Health System.
He/she will also have direct responsibility for the supply chain function at the Mount Sinai Health System, inclusive of the Health System’s eight hospitals, the Icahn School of Medicine at Mount Sinai, owned physician practices, and other ancillary clinical care assets. There are over 250 employees in the division, with over $4BN in annual non-labor spend to manage, inclusive of a medical supply budget well in excess of $1BN annually.
The CRO will serve as the “non-labor expense management” conscience for the system across all categories of non-labor spend (including categories of spend such as construction, IT, clinical and non-clinical capital, temporary labor, outside consulting, hardware and software, etc.), even when the resource management organization is not “directly” responsible (i.e., with full decision rights) for that category. He/she will have the responsibility to ensure that all forms of non-labor cost are being managed in a way that delivers cost effective yet high quality and equitable clinical care. Inherent in this responsibility is the need to balance the dual responsibility of achieving financial savings and/or avoiding cost inflation while maintaining the system’s high standards for care. The financial benefits may be the result of direct actions taken in the sourcing process (e.g. negotiating lower prices by pooling system-wide purchasing volume) or the result of more indirect improvements to the overall effectiveness of the supply management process (e.g., materials management, order-to-payment process, clinical and shared services resource utilization management across the hospital system). He/she will work to ensure that all resource procurement related practices, polices and structures are free from bias in all its forms and will endeavor to provide opportunities and develop relationships with community partners and stakeholders representative of the diversity of the patients and communities we serve.
The CRO will also be responsible for overseeing the supply chain and materials management function across the Health System’s hospitals and other sites. In partnership with hospital operations, nursing leadership, and support services, the CRO will be responsible for integrating materials management seamlessly into operations, ensuring efficient distribution of supplies, maintenance of appropriate par levels, and supporting high quality and efficient clinical care delivery.
The CRO will ensure the resource management division has the appropriate structure, diverse talent, and resources to deliver best practice delivery performance. In carrying out these responsibilities, the CRO is expected to develop an inclusive, cooperative, consensus-building, decision-making process.
Reports to the Chief Financial Officer of the Mount Sinai Health System
ESSENTIAL JOB FUNCTIONS:
1. Provides leadership and strategic direction for the overall resource stewardship program of the Health System a. Partners with the Chief Financial Officer, Chief Operating Officer, and Chief Human Resources Officer to oversee a process by which the organization drives meaningful and equitable improvements in clinical, financial, and operating outputs while reducing costs of input. b. Sets and measures appropriate performance expectations and a balanced scorecard for non-labor spend management across all Health System functions, inclusive of developing targets for cost savings/avoidance, customer service/service levels measurements, operational measures, supplier diversity, etc. c. Identifies and oversees continuous improvement initiatives aimed at achieving year-on-year reductions in the system’s non-labor spend. d. Oversees the successful deployment, development, and implementation of supply chain systems, services, and management as well as the technical infrastructure required to support the system-wide mission. e. In collaboration with the Chief Financial Officer and Chief Commercial Innovation Officer, develops alternative revenue sources related to resource management and supply chain for the Health System. 2. Builds an infrastructure to transition decentralized capital and expense categories into a COE (Center of Excellence) model including appropriate Vendor/ Partner Management capabilities for outsourced functions and services a. Partners with the CFO, COO, and others as needed to create appropriate spend governance and vendor management infrastructure across all expense and capital categories and provides budget support for “natural” or budget owners of spend categories. b. Builds links between the purchasing management function and the rest of the Health System to ensure non-labor spend can be managed effectively on an ongoing basis through collaboration with budget owners of all non-labor spend categories (e.g., Head of construction, CIO for IT spend, P&T committee for pharmaceuticals). 3. Develops and oversees strategies and processes for managing the total cost of non-labor spend through a system-wide standard approach, process, and responsibilities matrix. This includes, but is not limited to: a. Sourcing/procurement of all non-labor items (including professional services, capital, benefits, etc.) – all aspects of process including sourcing cycle (i.e. when to source different categories), total cost of ownership quantification, RFI/RFP process, contract negotiation and implementation. b. Supply chain/materials management – all aspects of end-to-end delivery chain from third-party distribution through to receiving and in-house materials and inventory management. This role also includes negotiation and management of the relationship with the system’s prime distributor. c. Procurement-to-fulfillment transaction management – all aspects of order processing and transaction management, including links to accounts receivable and accounts payable processes. d. GPO/Vendor management –negotiation of GPO relationship and ongoing management of relationship with all primary vendors. This role also includes vendor qualification process, day-to-day compliance management, etc. e. Contract management – maintenance of a contract database that maintains all commitments online with ready access to all affected and interested system parties. f. Non-labor resource utilization management – standard process for facilitating the work of Value Analysis Teams and other governing bodies, as well as the ongoing process to make informed, market-based decisions on resource utilization and budget reconciliation. g. “Build vs. buy” decisions – overarching approach, framework and analytical expertise for making complex “build vs. buy” decisions on major service factories (e.g. nutrition, linen and laundry, environmental services) and other critical areas across the Health System. 4. In partnership with other key stakeholders, develops leading standards and policies related to non-labor spend and resource management across the Health System, including: a. Resource (supply chain and shared services) management decision making and spend tracking. Will create and monitor KPIs while standardizing SLAs across these services to ensure budget and performance visibility. b. Vendor management practices including vendor certification and education programs, partnership relationships, etc., including development of a specific vendor management scorecard and process that gauges supplier’s cost, quality, and service performance. c. Utilization management efforts including substitution opportunities and demand management across the Health System d. Purchasing practices (to include standardization) of items used and/or procured system-wide (e.g., construction, purchased services, copiers, temporary labor, contract maintenance, implantable devices). e. Institution-wide sourcing systems and data management (e.g., database system; use of EDI). f. Policies and procedures in stock purchasing, inventory control, receiving and storage, distribution, material processing, and returns. g. Standards for and approaches to system’s accounts payable and warehousing activities. h. Priorities for supplier diversity, with the intent of developing a robust supplier diversity initiative reflecting a commitment to the Health System’s communities, inclusive of contract language, MWBE education and relationship development, target spend metrics, and RFP criteria. i. Service level agreements and other performance measurement mechanisms to gauge the overall efficiency and effectiveness of meeting user’s needs. j. All purchasing-related communications throughout system and with suppliers. k. Supply chain response for emergency preparedness including safety stock levels for all critical patient care supplies, emergency stockpiles necessary to guard against unanticipated disasters and pandemics, and relationships with all city, county, state and federal emergency management entities. l. Compliance with state and federal regulations. 5. Develops and manages a world-class team through activities including: a. Overseeing hiring, training, supervision, and development of vice presidents and directors who lead various supply chain programs and services. b. Monitoring the performance of all supply chain departments through subordinate directors, in accordance with established service levels and approved benchmarks. Making necessary adjustments and corrective actions to respond to changes in strategic direction or new programs. c. Championing and advocating for the value of diversity, equity and inclusion; taking action to increase diversity in the workplace by promoting and developing staff from under-represented minorities group. d. Utilizing leadership skills, problem solving and decision-making skills to facilitate and encourage participation of team members to meet objectives in congruence with approved standards and guidelines. Mentoring and developing diverse team members, and ensuring high levels of employee engagement, operations performance excellence, and appropriate succession planning. 6. Participate actively as a leader within the Mount Sinai Health System by: a. Serving as the primary resource management representative of the Mount Sinai leadership teams, committees, etc., and acting as the primary executive leader interface between Mount Sinai and key executives from the health systems’ vendors and partners. b. Engaging with relevant thought leaders and policy-makers at the federal and state levels, and representing the Health System as assigned. c. Using a lens of equity in establishing and promoting policies and procedures. d. Confronting racist, sexist or other inappropriate behavior and challenges exclusionary organizational practices and serving as a role model to promote anti-racist behaviors. e. Inspiring and fostering an environment of cooperation among different departments and co-workers. f. Executing select strategic innovation initiatives as directed by the Chief Financial Officer.
EXPERIENCE: Given the strategic, financial and operational nature of this role, the executive will need to have the following qualifications: 1. A master’s degree in business, healthcare administration, or related field is preferred. 2. Experience driving large-scale organizational and cultural change in complex organizations, within or outside of a healthcare environment. 3. Multiple years of progressively greater responsibility in resource management, logistics, supply chain management, and/or performance improvement, ideally including experience at a multi-hospital system operation, but non-healthcare experience is also valued.
Internal Number: 012243
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