Powerful Sourcing Program Helps Healthcare Providers Unlock Savings for Commodity Items
MedAssets today announced that its latest National Collaborative event, a sourcing program designed to generate cost reductions for products and services through precommitted purchasing volume, will drive an estimated $2 million in savings annually in the linen and apparel category. Medline, a distributor of more than 350,000 medical products that serve the continuum of care, was awarded a three-year contract for purchased linens and reusable apparel. More than 80 providers nationwide - comprising of nearly 700 facilities and representing 37 percent of the annual MedAssets group purchasing organization (GPO) spend - participated.
"Healthcare tirelessly demands lower costs, better quality and improved outcomes. We are pleased to participate in this innovative sourcing collaborative to help healthcare providers reduce costs and perform at their very best," said Tim Abate, president, Textile Division, Medline. "This provider-led sourcing strategy enables us to help our customers make smart decisions to support their clinical and financial success. We look forward to continuing our partnership with MedAssets to improve the healthcare supply chain value stream."
Addressing Areas of Untapped Cost Savings through Innovative Sourcing Program
Expense reduction continues to be a top priority for all healthcare providers, and hospital executives are looking for new and innovative ideas and methods for reducing supply chain costs. MedAssets National Collaborative strategy, built for front-line clinicians and end users who determine the overall value of supplies in a category, delivers an innovative way to save on products used in care delivery through volume aggregation and product standardization.
The latest sourcing event builds upon a program that has delivered significant savings opportunities to more than 1,000 participating provider facilities. Over the last three years, this unique approach has led to double-digit savings on approximately $1 billion in spend across multiple product categories. For reusable apparel alone, MedAssets National Collaborative strategy has helped reduce costs in this category by nearly 34 percent.
"With supply costs ranking as the second-largest area of operating expense, we are constantly looking beyond traditional supply chain management practices for new approaches to lower costs," said Clif Colley, corporate director, Purchasing, Baptist Healthcare Care - Pensacola, Fla. "MedAssets National Collaborative program allows us to secure industry-leading pricing on products and services by leveraging national purchasing volume through a strategic, analytical and clinician-led approach. Since joining MedAssets in January 2014, we have participated in four of these events, and have seen the extraordinary value in this program that promotes clinical alignment, standardization and collaboration."
"Providers across the country are facing a universal need to achieve integration of clinical value with financial goals," said Les Popiolek, senior vice president, Strategic Sourcing, MedAssets. "Our National Collaborative program is just one of the methods MedAssets is employing to help healthcare organizations across the country identify more value from GPO contracting. It's a unique sourcing strategy that optimizes purchasing efficiency of commodity items and drives opportunity for our pre-committed clients to save millions through standardization and clinical consensus."
MedAssets will host its next National Collaborative event March 17, 2015 for general wound care. Deadline for providers to commit is March 1, 2015.