Insights

Workday Considerations Regarding the Functional Supply Chain Impacts of COVID-19 on Healthcare Organizations

COVID-19 is creating a dramatic impact on the United States healthcare system and likely will continue to do so for a significant part of the year. Its spread has created unique challenges for Workday Supply Chain Management customers. CrossCountry has been closely monitoring the developments, as we know these are uncertain times for our customers and healthcare organizations and their employees.

Our team is committed to helping healthcare organizations navigate through this crisis, and we want to ensure we best support you through this period. We stand by to assist you with necessary updates to your Workday system and to help you navigate the CARES Act, as well as other federal/ state legislation that is sure to follow. Our
team members are a geographically diverse and nearly 100% remote practice that minimizes the impact on our operations.

Some functional areas that may be impacted are highlighted below:

1. Supply Chain Management

While relief efforts surge in the United States, hospitals/ care centers will be working with their suppliers more closely. As such, there are a few different facets that will be impacted:

  • Inventory Restructuring: Items that are now in demand are likely items that were not previously, resulting in the need to be recategorized in inventory or treated in an entirely different manner to accommodate current need. Inventory may need to be restructured to allow nurses and physicians to more efficiently access supplies for patient care while maintaining accurate financial reporting.
    • Creation of New Periodic Automatic Replenishment (PAR) Locations: PAR provides more efficient fulfillment of high-demand items that allows nurses and physicians to focus on providing care. 

    • Personal Protective Equipment (PPE) and COVID-19 Test Kits: New inventory sites and categories may need to be created to enable more granular tracking and reporting. 

    • Donated Items: Items that have been donated for use may need to be tracked and stocked differently than items acquired through standard fulfillment. 

  • Supplier Contracts: Contracted GPOs and other suppliers for high-demand items might need to be restructured and setup for more simplified fulfillment and settlement. 

  • Procurement Restructuring: Past purchasing processes may no longer fit the “new normal,” resulting in changes to how certain purchases may need to flow going forward. 


 

2. CARES Act

The CARES Act that is currently being fast-tracked will allow healthcare centers to apply for grant aid from the federal government. This may have the following impacts on healthcare organizations: 


  • Financial Reporting: Many of our current clients and others in this space will need to develop a collection of reports showing relevant organizational spend to qualify for federal aid.
  • Foundation Data Model (FDM) Restructuring: In order to accurately report spend for aid, healthcare centers may need to restructure their foundational data (e.g. spend categories, GL accounts) to more accurately report this information. 

  • Grant Accounting: Receiving a large and specific federal grant will likely result in the need to configure their Workday tenant to process spend against future federal grant aid. 


 

3. CrossCountry’s Operational Support and Advisory Model


  • Operational Support – We are prepared to: 
Provide operational support to relieve strain on personnel during this high-tempo period (i.e. human resource allocation, volunteer onboarding, staffing changes, leave tracking, inventory updates, configuration updates, and other critical tasks).
  • Inventory and Procurement – We are prepared to:
    • Review and update the configuration of your inventory and procurement to support donations of PPE and other critical medical supplies.
    • Assist and respond to supply chain risk and impact assessment.
    • Identify and develop new reports and dashboards to provide visibility on the end-to-end supply chain data. 

  • Health Check – We are prepared to: 
Assess your current configuration and operating model to ensure that you can respond to COVID-19 related requirements.
  • Reporting – We are prepared to: Interpret and respond to federal, state and other reporting requirements.
  • CARES Act Support – We are prepared to: Guide and assist with updates and changes to your FDM and financial reporting to help obtain emergency appropriations from the CARES Act.
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