Purchasing Policy for Vendors
PHP is a not for profit health network. Members include Miami Valley Hospital, Good Samaritan Hospital, , Atrium Medical Center and Upper Valley Medical Center. The Strategic Sourcing and Procurement & Logistics Departments are dedicated to the prudent buyer concept and encourages creative, innovative and cost effective suggestions on the part of suppliers. We are anxious to maintain an open, competitive and congenial atmosphere to create a mutually beneficial relationship with all suppliers.
PHP is a Shareholder/Partner of VHA, Inc. and part of the Member Partnership Program (MPP) network group (Novation)
We will follow OMB Circular A-110 Sections __.40-.48 for any federally funded purchase.
PHP Supply Chain Division Inrerviews and Hours
PHP Supply Chain Division is located at 110 N. Main Street, Suite 260, Dayton, OH 45402. PHP Capital Acquisition is located 110 N. Main St., Suite 270, Dayton, OH 45402. PHP requires a single representative for all entities. Interviews are by appointment only. Upon arrival at each hospital, a registration log is provided for signing in located within the Purchasing Department. At that time, the Associate Sourcing Buyer will contact the appropriate parties to confirm your appointment. If a hospital employee confirms an appointment, then a supplier pass will be issued to anyone visiting areas of the hospital. This pass must be worn at all times while you are in the hospital and returned after the visit is completed. Please sign out when your appointment is completed. Unsolicited sales calls to unauthorized parties are prohibited and will be monitored and enforced. See PHP “Sales Interaction” Policy for further details.
Some limited purchasing is performed directly by other hospital departments such as Pharmacy (pharmaceuticals only), Nutrition Services (food only), and the Gift Shop (merchandise only). When appropriate, we will refer suppliers directly to these departments.
If the supplier will be visiting in an area where there is direct contact with patients, the following documentation is necessary before the first visit:
- Proof of company training or certification on the equipment or supplies that will be offered by the supplier and used by the physician or staff.
- Proof of company training in asepsis/infection control practices
- Proof of $1 million dollars of product liability insurance. (Acceptable form of insurance verification is either a copy of a valid Certificate of Insurance or statement on supplier letterhead that company is self insured stating product liability limits and signed by authorized company officer or general counsel. Letter must meet parameters determined by PHP Risk Management before accepted.) If proof of product liability is not provided then a legal release/hold harmless from the representative company, must be on file with PHP Sourcing Department.
- Proof of current TB test (date and results of the test). TB test must be updated on an annual basis before current test expires. A questionnaire may be used at PHP
discretion, based on medical order
- Proof of annual influenza vaccination (TIV) by November 30 of calendar year
- The vendor will sign a confidentiality agreement for sales representatives in purchasing before presenting to the designated area for the first time.
The vendor will maintain confidentiality at all times.
Patient contact is restricted.
The vendor is not permitted to introduce and use a product or equipment within PHP unless there is approval from PHP Sourcing. Patient safety is critical and proper education for PHP staff is of the highest importance.
The vendor is not permitted to offer or attend any CME approved or 'other' teaching programs within the PHP operated facilities unless expressly approved by the Department Director.
Violations of the Policy
- First Offense – Verbal notification to individual of failure to follow hospital policy. Written letter will be sent to their supervisor.
- Second Offense - Letter of warning to the individual and their supervisor with cc: to the appropriate medical staff leadership.
- Third Offense - Individual can be placed on suspension for a specified time period up to termination, determined by executive administration.
Corrective Action for Sales Representatives will be progressive among all PHP hospitals.
Premier Health Partners reserves the right to terminate a Sales Representative from all PHP facilities at anytime if their behavior is unethical or if they should jeopardize the safety of our patients or staff.
Vendor/Supplier Conflict of Interest Policy
The goal of a conflict of interest policy is to distinguish types of conflicts, assess each potential conflict, and to avoid the appearance of impropriety. If a conflict does exist, it requires isolation of that individual from the conflict.
In our ongoing effort to identify and address actual or potential conflicts of interest or the appearance of a conflict of interest, it is the policy of PHP that immediate family members of any physician member (and/or any credentialed professional) of any PHP hospital medical staff will not be permitted to be a sales representative to the physician/family member or the physician/family member's medical staff department or section. The sales representative may call on the physician/family member's hospital but not in the capacity described above.
This action is to ensure that both our vendors and our PHP entities provide and purchase items without any appearance of impropriety.
Immediate family member includes the individual's spouse or siblings and their spouses, parents, grandparents, children (and their spouses), grandchildren (and their spouses), great grandchildren (and their spouses), in-laws and their immediate family and others living in the reporting individual's home.
Violation of the 'Vendor / Supplier Conflict Of Interest policy' will result in immediate termination of the Sales Representative in that location where the physician family member is on the medical staff.
We believe that an open, competitive atmosphere is most beneficial to both buyer and seller, and it is our policy to foster this environment. We buy on the basis of definitive specifications, quality of product and service, advantageous price, and delivery.
Terms and Conditions
It is the supplier's responsibility to ensure that the supply, quality, and fitness for purpose of the goods or services will not be impaired. The information preprinted, written and/or typed on the front and back of our purchase order is especially important to us. We will assume that you have agreed to the specified terms and that you will fulfill your obligations according to our purchase order. Therefore, we will debit your account and pay your invoice according to our purchase order whenever any discrepancy occurs. All payment terms will be Net 30 days unless specified differently on the purchase order. Supplier must comply with state & federal laws.
Gifts and Entertainment
It is contrary to hospital policy for suppliers to offer meals, gratuities, premiums or other incentives to any hospital employee under any circumstances. We prefer that incentives be expressed in terms of quality, service and price to the hospital in your quotations.
No merchandise may be shipped nor any service performed without an authorized purchase order. Purchase order numbers must appear on all shipments, packing slips, and invoices. Orders are understood to be shipped FOB destination unless otherwise specified on the purchase order. Any difference of price from the original purchase order amount must be authorized by the purchasing buyer in advance of shipments. A debit memo will automatically be issued if incidents occur. All maintenance and service contracts are non-renewable year to year. We will use VHA & Novation contracts when advantageous to PHP. Any suggestions for items to be included in these buying groups would be appreciated.
Status of Open Orders
While waiting to see Purchasing or Supply Chain Division, please review the status of all our open orders with your company, especially those past due or due in the forthcoming month. We prefer to see supplier representatives who know the current delivery promise dates and product lead times.
Catalogs and Price Lists
Your interest and assistance is solicited to keep Sourcing Managers and Buyers' files of catalogs and other product literature up-to-date and accurate at all times. Price catalogs are required in Excel format containing product description, catalog number, unit of purchase, contract number, contract expiration, PHP price and any contract information.
Value Analysis/Trial Orders
Any suggestions to reduce our procurement costs will be expected and appreciated. Demonstrations of new equipment or displays of new products are arranged through Supply Chain Division. Please contact a Sourcing Manger before proceeding. All equipment for trial and test must be covered by a purchase order specifying terms and conditions of the trial or test including length of trial.
There will be no cost or charge to PHP, including freight, for a product or equipment being trialed. The supplier will hold PHP harmless from all claims for compensation or damages of any kind involving the product or equipment. The supplier must also arrange for return of product or equipment within one week after completion of evaluation. All products or equipment for trial must be F.D.A. approved, inspected by BMEL, and if electrical in nature, UL/CSA approved. All PHP terms and conditions as stated on the back of the purchase order must also be met.
Premier Health Partners is committed to the principles and values of diversity and equal opportunity in all of our endeavors. Our vision and values celebrate the diversity of our people and community, and we view the differences among us as strengths and assets. Our belief in diversity is so strong that we have chosen to apply it in our purchasing activity by encouraging participation and development of diverse and local (9 county zip code region) suppliers who are capable of meeting and/ or exceeding performance standards as well as, price competitiveness. This further supports the hospital's mission and our commitment to build a healthier community.
The purpose of this policy is to engage and promote opportunities with Minority, Women, and Historically Underutilized Business Enterprises, other certified Disadvantaged, EDGE businesses and local businesses. This policy is also designed to assist the growth of diverse and local prospects through Premier Health Partners' coaching, mentoring and building of diverse partnerships.
PHP requires non-diverse vendors to report Tier 2 diversity spend to PHP and diverse vendors to give PHP a copy of their diversity certification.
Deliveries of all supplies and equipment should be through each hospital's Receiving Department unless otherwise specified on the purchase order. No orders or deliveries will be accepted if not referencing a valid PHP purchase order number. The purchase order number should appear on the packing slip, carton, and address label. Any shipment not containing the purchase order number will be returned to the supplier at the supplier's expense. It is important that items be promptly delivered according to the agreed upon delivery date at the time the order was placed. Deliveries can be made to our receiving dock Monday through Friday from 8:00 a.m. until 3:30 p.m. except holidays. Deliveries at other times must be refused unless emergency delivery has been requested. When the receiving dock is closed, emergency deliveries can be made by contacting Security. Non-compliance will result in delay of payment.
Bill Invoices as listed below:
Miami Valley Hospital
110 N. Main St., Suite 430
Dayton, OH 45402
Good Samaritan Hospital
110 N. Main St., Suite 435
Dayton, OH 45402
Miami Valley Hospital South
110 N. Main St., Suite 430
Dayton, OH 45402
Atrium Medical Center
110 N. Main St., Suite 440
Dayton, OH 45402
Upper Valley Medical Center
ATTN: Accounts Payable Department
3130 North Dixie Drive
Troy, OH 45373
No statement can be made without a supporting invoice which must show purchase order number. Discounts are taken from date of receipt of invoice or date of actual receipt of material, whichever is later. All purchase orders must match 100% (line for line) to supplier invoice. All invoices or payments will be reduced to the purchase order price if not resolved prior to shipping. Line item sequence must match the purchase order line item sequence.
Invoices sent to Premier Affiliates in excess of thirty (30) days, but less than sixty (60) days after date of delivery or service shall be discounted by thirty (30%) percent from the invoiced amount. Invoices sent to Premier Affiliates in excess of sixty (60) days, but less than ninety (90) days after date of delivery or service shall be discounted by sixty (60%) from the invoiced amount. Invoices sent to Premier Affiliates in excess of ninety (90) days from the date of delivery or service shall be written off and Premier shall owe no fee for said invoiced product or service
Return of Merchandise
PHP reserves the right to return merchandise which does not meet specifications. It is understood that such goods are to be returned at supplier expense.
Please ensure that all appropriate MSDS sheets are included with all chemicals (solid or liquid) and all hazardous materials shipped/delivered to PHP.
PHP complies with all aspects of the Safe Medical Devices Act and therefore completes Medical Device Tracking forms for all trackable devices under SMDA. Such information will be provided to the manufacturer in a timely manner. In order to ensure compliance, the lot/serial number and item/catalog number should be printed on the packing slip of all trackable devices. PHP shall control disposition of faulty devices and consult with PHP's Risk Management Department before release of device.
Expiration Dates Inventory
Inventory with an expiration date will not be accepted with less than a 2-year expiration date unless approved by purchasing. Suppliers are required to rotate stock and ensure PHP does not receive expired inventory.
The Director of Procurement & Logistics serves as the liaison for all departments in regards to all product recalls. Any information regarding recalls of products should be sent to the Purchasing Department, attention Director, Procurement & Logistics.
Supplier Performance and Savings
As a matter of good purchasing practice, we periodically evaluate all suppliers on a basis of actual delivery performance compared to promised delivery date, ability to meet our rush requirements, unauthorized split shipment, number of rejects due to poor quality, and adherence to purchase order price. Subsequent buying decisions are strongly influenced by this evaluation. When appropriate, we will advise you of your ratings. Unsatisfactory ratings will result in removal from our Authorized Supplier List.
We also have an active cost reduction and savings program. Thus, your ability to give and maintain low prices consistent with quality and service is of great importance to our supplier selection. Most items are reviewed for price and delivery at a minimum of once a year.
All packing slips must contain the following information: Purchase order number, Supplier product catalog number, packing slip number, quantity, unit of measure, and freight carrier (if applicable). Line item sequence must match the purchase order line item sequence.
All repair costs must be approved by the respective buyer before the completion of the repair. Failure to comply with this policy assumes the supplier will be responsible for all costs (materials and labor) and agrees to hold PHP harmless from all costs and damages, including property and personal injury.
Sales representatives are requested to use the visitor's parking facilities and not to park in restricted areas. When visiting Good Samaritan, suppliers must park on the 3rd floor parking garage & above. Cafeterias and a vending area are available at the hospital for representative's use.
All orders placed by PHP will be shipped best way and be FOB Destination unless specified differently on the purchase order. All next day air shipments requested by PHP are to be shipped via Fed Ex collect using PHP account numbers. The reference billing line must include the PO # or cost center supplied by the buyer. Contact the appropriate buyer for account information.
PHP is a not-for-profit organization and is tax exempt. To receive a copy of our tax exemption certificate, please mail or fax your request to the Secretary, Supply Chain Division (fax 937-499-8440) or Capital Acquisition (fax 937-499-8442).
All maintenance and service contracts are negotiated by the appropriate buyer for fiscal year January 1 through December 31.
EDI & Bar Code Requirements
At this time, PHP has the ability to send orders via EDI only through Global Healthcare Exchange (GHX). Requests for this service should be directed to the Director Procurement & Logistics. All inventory items must have a unique readable bar code on the unit of issue. Suppliers should support PHP's efforts to conduct transaction electronically.
Non-Compliance with any of the policies may result in, but limited to the following:
- Meeting with the representative
- Meeting with the representative and/or his/her supervisor
- Immediate removal of suppliers or equipment from PHP
- Suspension of hospital calls for the representative and/or company for a specified period of time
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