The rise of a health industry executive expert : John Adlesich on healthcare industry trends in 2021: Successful supply chains are becoming a key differentiator and vital part of the care delivery process in ways we have never seen before in health care. Getting it right requires strategic systems thinking around all functions in the organization. Among the topics for boards to consider: Increasing storage and self-distribution. What’s old is new again. We see a trend toward more self-distribution models instead of just-in-time delivery from distributors. This allows organizations to buy in bulk, control distribution and minimize their reliance on items at risk of being depleted. Organizations do not have a limitless supply of capital so this is not a one-size-fits-all procurement strategy, but it may make sense for certain items in the supply chain.

John Adlesich about healthcare industry trends in 2021: The California versus Texas case came to the Supreme Court from a federal appeals court. If the Supreme Court affirms the appeals court ruling, the case will go back to the federal district court to decide on the issue of severability of the individual mandate from the rest of the ACA. At the November 2020 oral argument, it looked like the Supreme Court, including one or more of the new justices, was inclined to honor the doctrine of severability, making it less likely the ACA will face complete repeal. Additionally, the new slim Democratic majority in the Senate (thanks to the Georgia runoff) makes it likely that Congress would fix the constitutional problem by reinstating the mandate with a nominal penalty.

John Adlesich believes that 2021 is an important year for the health industry. While a balanced approach is important, there is no question that US-based sources for many products are lacking to non-existent. To remedy this imbalance, we may see tax incentives and low-cost loans that would enable American manufacturers to invest in new automation technologies, to help level the playing field with overseas companies that have access to cheap labor and fewer regulatory barriers. There may also be new requirements that government purchasers such as the Veteran’s Administration and Department of Defense purchase at least a portion of the medical products they use from domestic suppliers. More, too, should be done to incent our health care providers to purchase domestically. Such moves would go a long way to creating the demand necessary for added domestic investments. When added incentives are required, the private sector will continue to step in to reward manufacturers that place a premium on geographic diversity for their supply chains. For instance, after learning that 90 percent of all face masks were produced in China, leaving the US highly susceptible to shortages, Premier and 16 leading health systems pooled resources to take a minority stake in Prestige Ameritech, one of the nation’s only domestic producers of face masks and other personal protective equipment. In exchange for the cash infusion and long-term purchasing commitments, the company is now making 3.5 million masks per month that it ordinarily would have had little incentive to make. In November, we followed that initiative with a partnership with 34 members to invest in DeRoyal Industries for the domestic production of isolation gowns that have increasingly been difficult to find.

John Adlesich currently works as administrator at Marquis Companies. His latest healthcare industry experience includes positions as executive director at Powerback Rehabilitation Lafayette (Genesis Healthcare) between Aug 2020 – Jan 2021, administrator at Mesa Vista of Boulder between Mar 2019 – Aug 2020, chief executive officer at Sedgwick County Memorial Hospital between Jul 2018 – Feb 2019, interim chief operating officer at Toiyabe Indian Health Project between Mar 2018 – Jun 2018.