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Medical nutrition portfolio savings top $1.1M in first 8 months of uptake

Premier
Foodservice Program
The Premier Foodservice Program is the largest of its kind in healthcare and the most expansive of any offered by a healthcare group purchasing organization. It combines sole-source distribution through U.S. Foodservice covering 100 percent of the United States. Premier leverages its $2.5 billion in member foodservice purchases to negotiate committed contracts with manufacturers and suppliers. It has more than 150 such agreements covering more than 60 product categories – in excess of 20,000 products. There is online order entry, a reporting system exclusively for Premier members and benchmarking for operations and clinical dietetics.

Premier’s Foodservice Operational Strategy experts will help members by providing a comprehensive evaluation of current outsourcing agreements, assistance with self operation and guidance with retail foodservice opportunities.

Situation:

The average Premier hospital operates on a 1.7 percent margin so purchasing directors look for any way to cut costs without negatively affecting patient care. Identifying savings in larger categories has a big impact, but smaller categories such as medical nutrition products also can provide significant savings.

Solution:

The Premier healthcare alliance allows smaller members to aggregate volume across various settings, allowing them to achieve lower prices for all facilities. Premier’s Clinical Nutrition Subcommittee conducted a traditional RFP process for medical nutrition products, awarding contracts after carefully considering current Premier purchasing patterns, current market conditions, and clinical performance, as well as overall value provided.

Result:

The process saved alliance members from possible increases of more than $10 million.
With the new clinical nutrition portfolio, total savings exceeded $1.1 million across the Premier alliance in the first eight months of the new portfolio launch.

"It [the new clinical nutrition portfolio] further supports system-wide efforts to promote standardization and allows us to reinvest in the health system by increasing our use of the Premier portfolio."

Sheila Dorsey, Corporate Purchasing Manager
Adventist HealthCare

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