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Resiliency Badging Program

Overview

1. What is the HIRC Resiliency Badge?

A new healthcare industry standard and evidence-based assessment that evaluates supplier resiliency at a product category level.  

The badge enables 1) providers to more readily select suppliers with demonstrated resiliency, 2) suppliers to better compete on the merits of resiliency, 3) reduces redundancy in evidence gathering, and 4) increases partnership.

Adoption of the badge reduces the risk of supply disruption in the US healthcare supply chain.

Over 50 provider and supplier organizations and 350 healthcare leaders contributed more than 3,000 hours of combined effort to produce the standard.

2. What does the assessment cover?

The badge is a robust inside-out assessment.  Artifacts include key performance indicators (KPIs), policies & procedures, survey responses, and interviews.  These key data requests provide the foundation to conduct an in-depth diagnostic of an organization’s resiliency.

Domains including: demand planning, inventory management, logistics, supply chain visibility, supplier management, risk management and contingency, operational healthcare, and market.  

Each domain includes subdomains, for example: demand variability management, stockout and backorder management, end-to-end network design, extended supply chain mapping, supplier performance management, business continuity and mitigation planning, performance metrics and management, and market stability.

 

Overview

1. How does the assessment work?

  1. Supplier submits application to HIRC to begin the resiliency assessment process  
  2. NDA and SOW signed
  3. Required data loaded to secure platform 
  4. PwC conducts interviews over 4 week period
  5. PwC completes scoring rubric based upon HIRC standard
  6. Executive summary generated
  7. HIRC makes determination if supplier has met the HIRC standard

2. How is resiliency defined?

Based on a review of academic literature:

Definition

The adaptive capability of the supply chain to detect, anticipate, respond to, and recover from disruptive events by maintaining transparency and continuity of operations at the agreed upon service level, with high levels of communication and influence over structure and function.

Attributes

  • Agility/Responsiveness
  • Visibility
  • Flexibility/Redundancy
  • Structure and Knowledge
  • Reduction of Uncertainty, Complexity & Reengineering
  • Collaboration
  • Integration of Operational Capabilities & Transparency

3. How are the results presented?

A 3-level maturity model has been developed as part of the Badge Program.  The model has been developed at the domain and sub-domain level of granularity.  Specific maturity criteria are provided for each combination of domain, sub-domain and level of maturity.

4. How is scoring performed?

Each question is weighted by importance (high/med/low), attribution density, community subject matter sentiment, criticality, and normalized for appropriate relative impact.

Suppliers receive a maturity model grading of 0-3 on each of 31 subdomains and an overall assessment:

  • (3) Outperforming
  • (2) Acceptable/Sufficient
  • (1) Less than Acceptable
  • (0) Unassessed

Overview

1. Provider benefits

  • standardized evidence of operational resiliency of strategic trading relationships
  • confidence that your supplier has the capability to deliver critical products reliably
  • efficiency by not having to investigate and gather data independently

2. Supplier benefits

  • differentiate yourself in the marketplace with proof of resiliency
  • demonstrate strengths and innovations
  • enable efficiency by reducing one-off data requests
  • identify opportunities for future growth

Overview

1. Provider Ask

9 out 10 provider leaders in HIRC say “yes” to the following:

The resiliency badge will have a meaningful impact on:

  • bids and awards
  • elimination of duplicate information requests
  • annual review

Large IDN leaders:

“We will leverage the badge as part of our RFP process and sourcing criteria. The presence and performance of the badge will assign points to our selection, the same way we judge on cost, quality, diversity and service.”

“The resiliency badge will play a meaningful role in our strategic sourcing criteria for critical products. We will incorporate in business reviews and performance expectations.”

2. Supplier Ask

  • Invest in operational resiliency and risk management to protect continuity of patient care
  • Differentiate yourself in the market by earning the resiliency badge
What is the cost?

Standard pricing is $85k.  Member pricing is $75k.  Reduced pricing is available for early adopters.  Cost covers the four week third party assessment and attestation.  Badges expire after three years.

How much effort is required?

We estimate 1 FTE to coordinate internally, and fractional FTEs across each of the 8 domains to address the assessment.  Timeline is approximately 4 weeks.

How is my data protected?

Privacy, security and confidentiality are stringently protected.  All data is managed via a secure third-party SaaS.  Suppliers have full control over data sharing.

  • Strong authentication (SSO and MFA)
  • Encryption (TLS 1.2 and 256-bit AES)
  • FIPS 140-2 certified
  • Watermarking
  • And more