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WNCHN members realize $46M+ in savings through collaboration

The WNC Health Network is a collaboration of hospitals, health departments and other providers to support cost-effective, quality health services. Its visionary community focus is supported by collaboration, integrity and respect among members. Based in Asheville, N.C., WNCHN began in 1995 to identify, explore and implement cost-effective, joint opportunities among hospitals and healthcare systems in Western N.C. It has evolved to include 48 hospitals and health systems representing 55 sites, 13 health departments and Mountain AHEC. A not-for-profit, WNCHN is an Independent Regional Network that helps members meet the challenges of a changing healthcare environment through shared healthcare services, patient quality of care and group purchasing. www.wnchn.org.

Situation:

Smaller independent hospitals – even larger medical centers – throughout the Carolinas and Virginia generally lack the size to leverage best pricing from larger manufacturers, suppliers and distributors. But there is power in joining together to aggregate volume and negotiate contracts.

Solution:

Working together, a still growing number of hospitals and health systems (now representing some 55 facilities in three states) have joined together in what they call an “IRN” – Independent Regional Network, a twist on IDN terminology. The hospitals have more than three-quarters of a billion dollars in aggregated annual supply spend. Members are committed to the Network and making its programs work. They make final decisions on vendors. They decide the best fit. All contracts are voluntary. Members participate because together they drive opportunities they cannot get on their own.

Result:

Savings are $46 million with $28 million in savings having been added in 2008 and 2009 alone.
Members have access to top tiers of almost every Premier contract.
Cost savings-to-dues ratio average is greater than 30 to 1.

"With an ROI of 20 to 1, it’s a no-brainer. We’ve reaped many benefits. We’re at the highest tiers with much of what we purchase. We would never ever get there on our own."

Dale Ducker
Director of Materials Management
Haywood Regional Medical Center

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