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Resiliency Badging Program

Themes
What
Why
FAQ

Primary Themes

1. Process & Performance

Badge will evaluate supplier process (operational and risk maturity) and performance (outcomes) across the Risk Domains as evidenced by:

  • Policies/procedures
  • KPI
  • Surveys
  • Interviews

2. Efficiency & Value

Efficiency: suppliers share evidence once for multiple strategic products / categories.  Providers gain confidence in those products.  Renewal every 3 years.

Value: each badge represents 4 weeks of diagnostics performed by a big 4 audit firm.  Badges are accompanied by an executive summary and select key data sets.

3. Security & Selection

Security: all assessment artifacts are managed securely (SOC 2 Type II) via an industry leading virtual data room (Box).

Selection: suppliers have autonomy in what artifacts to upload and with whom to share.  Suppliers set specific provisioning and file auto destruct dates.

4. Standards & Innovation

Standards: the badge will include a breadth of standard definitions and measures for healthcare supply chain management.

Innovation: suppliers earn [bronze / silver / gold / diamond] across various Risk Domains including callouts of best practice and innovation.

Nothing changes until we do

1. Problem

  1. Healthcare supply chains lack resiliency.
  2. Providers lack visibility to supplier resiliency capabilities.
  3. Providers cannot identify and select for resilient suppliers.
  4. Suppliers lack incentive to invest in costly resiliency assets.
  5. Investments in resiliency stay flat since selection focuses on price.

2. Solution

  1. HIRC is ready to address this problem.
  2. We are building an evidenced based assessment with PwC.
  3. The assessment will dive deep into 15 areas of resiliency.
  4. Findings will be demonstrated by hard data and probing interviews
  5. Suppliers who prove their capabilities earn a resiliency badge.

3. Roles

  1. Unless providers adopt the badge, suppliers won’t pursue it.
  2. Without proof of resiliency, selection stays focused on price.
  3. If resiliency isn’t rewarded, investments in capacity/redundancy won’t happen.
  4. Patients will continue to be impacted by lower resiliency.
What is the resiliency badge?

A new initiative to develop a standard and assessment to assist providers in answering “is my supplier resilient?”  Overview

What will the assessment cover?

Risk Domains

 

When will the assessment be available?

Existing supplier members are eligible for a pilot assessment Q1 2024.  Public release projected Q2 2024.

How will the assessment work?

Start

  • Supplier submits application to HIRC to begin the resiliency assessment process
  • NDA signed

Assessment

  • Required data loaded to secure platform 
  • PwC conducts interviews over 4 week period
  • PwC completes scoring rubric based upon HIRC standard
  • Executive summary provided

Outcome

  • HIRC makes determination if supplier has met the HIRC standard
    • If yes, badge awarded
    • If no, feedback given for supplier to make corrections

 

How much does the assessment cost?

Estimated fees:

  • Non-members: $100,000
  • Members: $75,000
  • Pilot: $25,000

*Suppliers can bundle multiple products / categories under one badge for efficiency

 

What is the rational for the fee structure?
  • PwC assessment cost (4 week engagement)
  • HIRC administrative cost
How often will the assessment be repeated to renew the badge?

Every 3 years

What is the different between the Transparency and Resiliency badges?

Transparency Badge

  • Live
  • Opt-In
  • No cost
  • To qualify: meet BCM and Mapping Standard (details)

Resiliency Badge

  • In-development
  • Opt-In
  • Cost
  • To qualify: meet the new Resiliency Badge standard (in-development) and provide evidence
Why PwC?

PwC has aligned culture and capabilities.  HIRC and PwC have a signed engagement.  PwC will advise on badge program design and subcontract to HIRC for supplier assessments.

Why is the assessment at the product category level?

A majority of members agree that risk mitigation is often deployed in a stratified fashion.  For example, critical products and services are typically more protected (i.e. resilient) than non-critical.  Market dynamics, patient impact, economics, and risk all play a role.  Likewise, a supplier may be less likely to purse the badge for all categories, but rather for critical categories where differentiation is of additional value.

What if I don't pass the assessment?

Suppliers will have every opportunity to make corrections and resubmit.

Who can see the assessment results?

Assessment results will be owned by the supplier.

Executive summary may be shared with other parties only if permitted by the supplier.