Premier helps Cape Fear Valley drive $5.34 million in supply chain savings
Cape Fear Valley Health System (CFVHS), a regional health system in Fayetteville, NC, has 765 beds, four hospitals in Fayetteville and one in Elizabethtown, and primary care physician offices throughout Cumberland County and surrounding areas. The ninth largest health system in the state with more than 935,000 patient visits annually, CFVHS is Cumberland County's largest non-government employer. Facilities include Cape Fear Valley Medical Center, Highsmith-Rainey Specialty Hospital, Cape Fear Valley Rehabilitation Center, Behavioral Health Care, Bladen County Hospital, and HealthPlex fitness and wellness center.
Situation:
CFVHS had a huge capital initiative to meet with growing demands for its services. CFVHS was using value analysis teams to look for optimization and provide momentum for change.
Solution:
Premier Consulting Solutions, armed with an integrated value delivery team of clinically trained consultants from pharmacy, orthopedics and medical services, provided insight into a variety of supply chain opportunity areas.
Result:
- CFVHS realized savings on 60 percent of project-identified savings before the 14-month engagement was completed.
- Through additional contract opportunities and discrepancies between existing supply contract prices and higher invoice prices, additional savings were uncovered.
- Shifting percentage distribution of clinically alternative medications gave greater weight to lower cost options.
- Orthopedic construct pricing was introduced. With supply expense benchmarks, CFVHS negotiated better contracts with significant savings.
"We were quite impressed. We set out to identify $5 million in savings
and were able to implement $5.34 million."
Kevin Jackson
Vice President of Support Services Cape Fear Valley Health System