Aligned incentives with Premier saves Catholic system $16.8M
Catholic Healthcare Partners is one of the largest not-for-profit health systems in the U.S. and Ohio’s largest. It consists of more than 100 organizations, including acute care hospitals, long-term care facilities, housing sites for the elderly, home health agencies, hospice programs, wellness centers and more. The facilities are divided into nine regions, each providing a comprehensive range of services to meet the healthcare needs of people in Indiana, Kentucky, Ohio, Pennsylvania, Tennessee and nearby states
Situation:
Catholic Healthcare Partners’ (CHP) supply chain executives realized there was a significant opportunity to work collaboratively with all its hospitals to target savings and stretch dollars in the vital capital equipment procurement area. CHP looked to is GPO partner, Premier, for assistance.
Solution:
Premier offered an ROI-guaranteed response that included an integrated delivery network capital specialist. Premier and CHP pursued savings, implementing things such as Premier group buys, tier maximization of Premier capital contracts, among other strategies.
Result:
A Premier integrated delivery network capital specialist working inside the organization for three years documented coproduced savings of more than $16.8 million. CHP received a 32:1 ROI with savings seven times the original goal.
"The fact that we generated the savings we did shows the opportunities
available to reduce capital and construction costs. These savings were a key
factor in our decision to devote a dedicated resource within our home office
supply chain function."
Darryl Long, VP of Supply Chain
Catholic Healthcare Partners
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