Exact match savings more than $500,000 for Illinois hospital
Ingalls Health System serves a diverse community of 32 towns across Chicago’s southern suburbs, with a combined population of nearly 1.25 million. Multiple facilities include a 563-bed hospital, four comprehensive outpatient campuses, an outpatient rehab facility and a community wellness center. Named one of "America's Best Hospitals" by U.S. News & World Report for six consecutive years in the area of Neurosciences, Ingalls is also recognized for clinical excellence and achievements in cancer, heart, retina surgery, orthopedics, rehabilitation, stroke care and gastroenterology.
Situation:
Ingalls Health System joined Premier with the goal of reducing its supply costs by at least $4.33 million in three years.
Solution:
Premier’s Internet-based procurement system, Supply Chain AdvisorTM, was key to recognizing savings opportunities. Also integral to the process was Premier’s region director who trained Ingalls’ staff on the system, worked one-on-one with departments, and regularly presented new Premier contracts and possible new savings. Ingalls also joined the Midwest Regional Purchasing Alliance to capitalize on aggregated purchasing opportunities.
Result:
Ingalls achieved 78 percent of its three-year savings goal in only 12 months. The medical center also realized more than a half-million dollars in “exact match savings.”
"We saved more than $500,000 right out of the gate simply by changing
from Novation to Premier contracts. That’s unique. To save that much on a
current book of spend without having to make any change whatsoever in products
we were using."
Harold Richards
Director of Materials Management
Ingalls Health System