Mark McKenna, retired president and CEO of Novation, led the nation?s largest group purchasing organization from 1999 through the summer of 2006. McKenna was a member of the joint venture team that formed Novation through discussions between VHA Inc. and the University HealthSystem Consortium (UHC) in 1997.
His distinguished career in supply chain management and supply cost control spanned 30 years with medical device manufacturers as well as provider-owned group purchasing organizations. McKenna's leadership was critical to the merger of the supply chain business of VHA and UHC and in sorting out the processes, leadership team and success measures to assure that the joint venture delivered the value expected by its owners and members. This was accomplished by merging the two purchasing portfolios into a cohesive and valuable asset serving both the members of VHA and UHC and documenting over $350,000,000 incremental savings in the first three years of the joint venture. In addition, he led the development of the Novation culture, building on a keen balance of both business needs and values, resulting in a high performance organization focused on results and on measures that reflected customer and employee needs and satisfaction.
During McKenna's tenure, several significant milestones were achieved and are worthy of mention:
- Eight consecutive years of growth in operating income and compounded annual growth rate of 12%
- Customer and employee satisfaction approaching 80%
- Creation of an accountable and industry savvy management team
- Innovative approaches to creating cash incentives through customer participation and commitment, resulting in not only best pricing on the industry's most valuable portfolio, but cash back to customers in excess of $250,000,000 annually
- Increase in employee efficiency resulting in a work force reduction of 15% in 2003 - 2004 and corresponding increases in all financial metrics
- Introduction of successful physician preference contracting and custom contracting models
- Contract savings and cost avoidance of over $1 billion in 2005
- Oversaw the diversification of the business into European markets, resulting in a unique joint venture with Exel/DHL with Novation as the procurement arm for the National Health Services in the United Kingdom
He has served on the boards of directors of Novation and HealthCare Purchasing Partners International since 1999. In addition, McKenna served as:
- Board member for Neoforma from 2000 to 2003
- Chairman of the Health Industry Group Purchasing Association from 2003 - 2004
- Board member for the Health Industry Group Purchasing Association from 2000 -2006
- Board of Advisors of NCI, Inc. from 1993 - 1997
- Board member for Arizona State University Supply Chain and Research Consortium from 2004 to 2006
- Board of Advisors for The Beryl Companies
McKenna announced his retirement in November 2005 and he worked on a transition with his senior management team to new leadership in 2006. During this time frame, McKenna was instrumental in initiating the process redesign for Novation?s contract process, as well as working with teammates on unique ways to utilize supply chain data to turn it in to useful information at the member/customer level, resulting in even greater efficiencies and savings. As McKenna left Novation in sound financial and organizational shape, he is looking forward to serving on several boards, advising a select few companies in the areas of supply chain management and general business, working on several community projects and traveling extensively with his family.
Update: Since retiring inJuly of 2006 McKenna has joined the Board of Directors of Suture Express, Sterilmed Inc., Patton Surgcal, Life Nexus and is a Trustee at the University of Dallas. |