Premier helps U of L hospital
improve quality, save $1+ million
University Hospital is an academic medical center at the heart of the Louisville-metro area. Specialty areas include second-to-none radiology and radiation oncology, world-renowned developments in trauma response, and a uniquely streamlined accredited stroke center. University Hospital, the James Graham Brown Cancer Center and University Physicians' Associates are part of U of L Health Care, the region's leading academic, research, and teaching medical center. All services are associated with the University of Louisville Health Sciences Center.
Situation:
Unhappy with its outsourcing agreement for foodservice and environmental services, University Hospital requested Premier Foodservice Operational Strategies (FOS) conduct an operations assessment. It revealed:
- Convoluted guaranteed per patient day contract with no transparency
- Revenues not reported
- Poor quality outcomes
- Little or no value or leverage on the hospital’s side
Solution:
University Hospital contracted Premier FOS to manage a new RFI/RFP process:
- Coordinated and managed entire process including vendor site visits and presentations
- Analyzed all proposals
- Prepared a side-by-side comparison, including financial, patient and retail services
- Explored self-operation model
- Presented recommendations to selection committee and executive committee
Result:
- Cost savings of more than $1 million and better quality
- Selected Morrison’s for foodservice and Crothall for environmental services, both Premier contracted suppliers
- Transparent, easy-to-manage, outcomes-based contract with straight management fee agreement for both food and environmental services
- Contract leverage now with University Hospital
- Hospital will receive administrative fee on its $1.5 million of food and supply spend.
"Premier has been an excellent partner helping us examine our
environmental and food and nutrition services. Their consulting services brought
to us the resources and expertise we needed to focus on tangible ways we can
improve from quality and financial perspectives. Our Premier consulting team
provided excellent advice and counsel as we navigated the examination of a
complex vendor relationship."
Ken Marshall
Vice President
University Hospital