Premier group buys help smaller hospitals experience large savings
As a community-based health care system, Fairview Health Services provides a complete range of services, from prevention of illness and injury to care for the most complex medical conditions. With seven hospitals, 50 primary care clinics, 37 specialty clinics, five urgent care clinics and a wide range of specialty service centers across Minnesota, it is one of the largest not-for-profit health care systems in Minnesota, Fairview also offers specialty services including laboratory, rehabilitation, senior programs, behavioral, home care and hospice. Fairview is redefining the delivery of health care through an integrated health network, providing care from prevention and disease management to treatment of the most complex of life-threatening injuries and illnesses. (www.fairview.org).
Situation:
All hospitals, regardless of size, are challenged by the necessity of replacing expensive capital equipment or purchasing the latest technology. At no time in recent memory has that challenge been greater than during the current economic downturn when hospitals’ investments have suffered and their ability to borrow has been compromised.
Solution:
Members can find a tried and true answer in Premier’s innovative group buy program. It delivers exceptional value through coordinated, limited-time, volume driven purchasing opportunities. Savings vary – usually between 5 and 15 percent and there are often special financing rates, trade-ins allowances, training, service and extended warranties.
Result:
In 2008, Fairview and 22 affiliates saved a $1.1 million on group buys totaling $8.3 million – a 13 percent savings beyond Premier’s already-low contract prices. Significantly, most of the savings accrued to smaller hospitals and critical access facilities serving rural Minnesota and Wisconsin.
" [We have] enjoyed our long-standing relationship with Premier. They prove their value to our organization with ongoing savings. In 2008 we experienced savings of more than $70,000 on five capital budget items. In addition, we are able to save staff resources because of the tools, reports and customer service Premier offers. Our relationship with Premier is very beneficial and worthwhile."
Debora A. Kunferman
CEO/Administrator
Cumberland Memorial Hospital-Extended Care Unit Inc