SC hospital expects to save $1M by joining Premier and WNCHN
For more than 65 years, Oconee Medical Center has served the South Carolina foothills. Services include a birthing center, wellness center, home health and Oconee Hospice of the Foothills. There are some 125 physicians representing 25 specialties and more than 1,400 employees. One of three S.C. hospitals that operate an emergency medical service, Oconee along with Anderson Area Medical Center and the Medical University of South Carolina, operate the Seneca Lakes Family Medicine Residency Program, the first S.C. program of its kind that focuses on practicing medicine in a rural area. For more information, go to www.oconeemed.org.
Situation:
Oconee Medical Center was reviewing its supply chain options in 2008 including its relationship with its group purchasing organization. The hospital was facing some the most challenging economic times in decades and in that environment was going to open a new 155-bed tower in 2009. The organization’s imperative was to find all the savings it could.”
Solution:
As part of the review process, Oconee was drawn to the potential for savings presented by the Premier-WNC Health Network membership model. Several nearby hospitals were already enjoying access to Premier’s highest contract tiers through membership in both organizations.
Result:
Oconee will realize nearly $1 million in annualized supply chain savings as a result of simply converting to Premier contracts for items it was already using. The power of aggregation with other hospital allowed the smaller, independent hospital to enjoy prices similar to those of larger integrated delivery networks.
"Once we saw all the possibilities for savings, it made our decision easier, and we haven’t been disappointed. With the savings we’re experiencing by simply signing new agreements on existing contracts, we are pleased with our decision and happy with the conversion process. We are definitely pleased."
Jerry Nalley
Director of Materials Management
Oconee Medical Center