Aurora Health Care Diversity

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Aurora Health CareDiversity

• Kathy Capp
• Manager Corporate Value Analysis

June 2006
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Committed to Finding a Better Way
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Aurora Health Care at a Glance
Largest community owned, not for profit,
integrated network in Wisconsin
Largest private employer in State of Wisconsin
Employees 27,162
Hospitals 12 Acute Care and 1 Psych Hospital
Adult Inpatient Days 430,973
Total Certified Beds 2,598
Retail Pharmacies 124
Clinics 100
Revenue 2.6 billion
Supply Expense 610M Includes Retail Pharmacy
Expense
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Aurora Health Care
We are committed to achieving a diverse workforce
that stimulates innovation and flexibility which
will differentiate us in the marketplace.
G. Edwin Howe President and Chief Executive
Officer Aurora Health Care
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AHC Achievements and Awards
Aurora Health Care Receives Governors 2002
Diamond Award The Diamond Award recognized
businesses and organizations implementing
innovative initiatives to provide women and
people of color with enhanced employment
opportunities in upper management and
decision-making positions.
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Milwaukee Magazines Top Ten Best Places to
Work Good pay. Top benefits. Great perks.
Twenty companies where work is more than just a
paycheck Aurora receives award in 2001
Aurora Makes Best Places to Work list for
second time in 2003
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What is Sourcing?
Sourcing- The process of identifying, conducting
negotiations, and forming supply agreements with
vendors of goods and services.

• Example of Auroras commitment to supplier
  diversity Our dedication to supplier diversity
  is ensuring that impartial and fair opportunities
  are provided to women, minority-owned and Veteran
  Business Enterprises (W/MBE/VETs) in the
  day-to-day procurement of services and supplies
  within Aurora Health Care.

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How was this Accomplished?
Through our System-wide Value Analysis Teams
(consisting of departmental staff from various
regions/facilities) who are responsible to
review, qualify, trial, and select diverse
supplier products and services for use within the
Aurora Health Care System. All products and/or
services must meet Aurora's standards for
service, competitive pricing and clinical
acceptability as verified by our System-wide
Value Analysis Teams.
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Auroras Certification Process

• Diverse Business interests complete a Supplier
  Diversification Questionnaire Form and submit to
  the Contract Manager within Corporate Purchasing.
  The System Logistics Department will use this
  form to determine whether a business qualifies
  under this program. The Diverse Business must
  include a copy of a certification certificate
  with the completed form.
• The Contract Manager will keep this documentation
  on file within Corporate Purchasing. Any Diverse
  Suppliers certified by Premier and/or certified
  by Auroras primary distributor would be exempt
  from completing this form.

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Auroras Certification Process Cont.

• Auroras Corporate Purchasing department will
  verify that each applicant is certified as a
  Diverse Business through an acceptable national
  certification agency or through a
• Local, State, or Federal Government Certification
  Agency.
• Local Minority Purchasing Council (affiliate of
  NMSDC).
• Woman Business Development Center.

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Tracking and Measures
Our Premier field representative along with
Premiers Supplier Diversity National Director
work with AHC procurement staff to set annual
spend goals that support supplier diversity.
There are a number of mechanisms for tracking
supplier diversity spends. AHC currently relies
on Premiers Supplier Diversity Reporting as well
as Cardinal Healths entelligenceSM custom
reporting features within their web page to track
non Premier Contracted supplier diversity spend.
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Definitions of Supplier Qualifications

• Definition of a Diverse Supplier A U.S. citizen
  that owns a business certified as small,
  woman-owned, veteran-owned or minority-owned.
• Small Business Business that meets definition
  criteria according to standards set by the Small
  Business Administration at http//www.sba.gov.

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Definitions of Supplier Qualifications

• Woman Business Enterprise (WBE) Business that
  is at least 51 percent owned/operated/controlled
  by a non-minority woman. Preferred certifying
  organization http//www.wbenc.com
• Veteran business Enterprise (VET) Certified by
  DD214, is a U.S. based small business at least
  51 owned, operated and controlled by a
  non-active veteran or disabled service veteran.

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Definitions of Supplier Qualifications

• Minority Business Enterprise (MBE) Business
  that is at least 51 percent owned/operated/control
  led by
• African American (ethnic origins in any of the
  racial groups of Africa)
• Hispanic American (ethnic origins in any of the
  Spanish-speaking areas of Latin America or the
  following regions Mexico, Central America, South
  America, and the Caribbean basin only)
• Asian-Pacific American (ethnic origins in
  Japan, China, Taiwan, Korea, Vietnam, Laos,
  Cambodia, the Philippines, Samoa, Guam, the U.S.
  Trust Territories of the Pacific, or the Northern
  Mariana Islands)
• Asian-Indian American (ethnic origins in India,
  Pakistan, or Bangladesh)
• Native American (a person who is American
  Indian, Eskimo, Aleutian, or native Hawaiian, and
  regarded as such by the community of which she or
  he claims to be a part). Preferred certifying
  organization
  http//www.nmsdcus.org

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Definitions of Supplier Qualifications

• Wisconsin Based Business Enterprise
• A business entity that includes all Wisconsin
  based businesses. A corporation, partnership,
  sole proprietorship, or other legal entity that
  is real and continuing business functions
  according to the customs and practices of the
  industry. At least 51 owned and operated by
  resident(s) of the State of Wisconsin.
•  

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AHC Diversity Goals

• The AHC Corporate Purchasing goal is to increase
  supplier diversity spending by at least 10
  percent annually from the prior year.
• Purchasing and capital equipment diverse spend
• Fiscal year 2004 3,041,075
• Fiscal year 2005 shows more than 10 percent
  increase in diversity spend amounting to over
  500,000 in new purchases.

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Success Stories Cost Savings for Aurora Health
Care
Examples that detail the savings realized by
using diverse suppliers for specific product
categories for year 2004.
Medical Chart Paper Supplier Print Media of
Miami, Florida
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Success Stories Cost Savings for Aurora Health
Care

Trays/Kits Supplier LSL Industries Inc.,
Chicago, Illinois
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Thank You
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