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Experts help TN IDN realize $2.7M in supply chain savings

In 2008 St. Mary’s Health System and Baptist Health System of East Tennessee merged. Mercy Health Partners has eight hospitals with other facilities and more than 1,000 physicians and some 5,700 associates. It is part of not-for-profit Catholic Healthcare Partners that operates hospitals, long-term care facilities, housing for the elderly, home health agencies, hospice programs, wellness centers and other healthcare services in Indiana, Kentucky, Ohio, Pennsylvania, Tennessee and nearby states. www.mercy.com

Situation:

Supply chain management key performance statistics were outside Catholic Healthcare Partners’ (CHP) allowable variances
Supply chain assessments targeted areas for improvement

Solution:

Supply chain leadership evaluated
Provided interim materials management leadership
Helped hire new leadership, mentor them to be successful
Reorganized staff, systems and facilities
Reorganized receiving and delivery processes
Led detailed review of regional contracting opportunities
Reestablished value analysis process and structure

Result:

New leadership in place and successful
Plan for new leadership in place and functioning
Materials management staff consolidated in one location
Unused supplies at closed hospital reallocated
New store room functioning
Regional purchasing vision for Tennessee region in place
Improved scores on seven of eight supply chain process effectiveness measures in 11 months
Supply chain management key performance statistics now within CHP allowable variances
Total validated saving approved for implementation total more than $2.7 million

"We went from under-performing versus system benchmarks to greatly exceeding them. Premier not only surpassed our financial goals but also improved department morale while increasing customer responsiveness. I definitely endorse the supply chain expertise that Premier experts bring to the table. Premier’s seasoned executives hit the ground running! Rather than slowing down while they were learning, we had to pick up our pace to keep up with them."

Dave Nowiski, CFO
Mercy health Partners Tennessee

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