Vizient announced last November that it has reached an agreement with Intermountain Healthcare to acquire its group purchasing subsidiary, Intalere. As we look ahead to the transaction’s expected close in the coming weeks pending standard regulatory review, we sat down with Bharat Sundaram, Vizient’s president and chief operating officer, to talk about how the planned acquisition supports Vizient’s mission and the value it will bring to members.
Supply Chain Management News: How do Intalere’s strengths and market focus augment Vizient’s capabilities and offerings?
Sundaram: One of Intalere’s biggest strengths is their footprint in the non-acute space. Their annual purchasing volume is about $6 billion and roughly 50% is in non-acute. This high level of market penetration will position Vizient and our members to successfully navigate the escalating shift from inpatient to outpatient that is occurring now. It will also create additional opportunities for our subsidiary, Provista, which focuses on non-acute providers not aligned with Vizient member hospitals as well as the hospitality and education markets. This acquisition reinforces Vizient’s commitment to supply chain as a strategic asset for health care providers.
Another strength of the Intalere organization is their culture. They have a rich history and culture that is similar to Vizient’s with strong integration with their members and a focus on service. This culture compatibility will be a big advantage as we blend the organizations.
An additional benefit is that Intermountain Healthcare will be joining Vizient. They are recognized as being a leading organization in supply chain in terms of operations, sourcing and best practices. Having them as a peer organization with the other industry leaders in the Vizient membership will enable new networking and learning opportunities for everyone.
Supply Chain Management News: Describe the catalyst for the Intalere acquisition.
Sundaram: We had been working to expand our relationship with Intermountain Healthcare from its current use of our Clinical Data Base and Operational Data Base analytics to supply chain solutions and services. When they made the decision to move to Vizient for GPO services, it was a natural conversation and Vizient is a natural home for the Intalere business. The acquisition will add approximately $6 billion to Vizient’s more than $100 billion in purchasing volume, which will enable us work to with suppliers to further drive best price for members.
Supply Chain Management News: What would you like members to understand about the planned acquisition and how the implementation will take place?
Sundaram: With the addition of the Intalere customer base, as well as the additional volume and reach in the non-acute space, we believe we can achieve greater value for members through the Vizient product portfolio. Also, as we broaden our relationship with Intermountain Healthcare, we expect them to become involved in many of our member networks. These peer-to-peer networks have always been a tremendous value to our members as they offer insights and best practices that inform performance improvement work, which ultimately strengthens every members’ ability to deliver high value care to the patients they serve.