Beaumont Health Partners With UHC on Cost Savings and Supply Chain Performance Improvement



"The dynamics of our market are constantly changing, and supply chain decisions have a greater impact on enterprise-wide performance than ever before"

UHC announced today that Beaumont Health has partnered with UHC and its supply contracting company, Novation, on a new two-year initiative designed to increase cost savings and supply chain performance improvement.

A leading nonprofit health care organization, Beaumont Health comprises Beaumont Health System, Botsford Health Care, and Oakwood Healthcare, encompassing eight hospitals and 163 outpatient sites. The new initiative, which continues a two-year partnership established between Beaumont Health System and UHC, will provide Beaumont Health with access to Novation’s price-competitive supply contracts and UHC’s supply chain analytics, industry-leading consulting, and tools for improving supply utilization and standardization.

“The dynamics of our market are constantly changing, and supply chain decisions have a greater impact on enterprise-wide performance than ever before,” said Mike Langlois, senior vice president, Supply Chain, Beaumont Health. “We look forward to building on our past partnership with UHC and scaling new heights in our supply chain that will support our mission to provide high quality and efficient care to the communities we serve.”

Beaumont Health will leverage Novation’s procurement solutions to aggregate purchasing across its facilities and collaborate with UHC consultants to develop strategies for achieving sustainable cost reduction. The organization will also use UHC’s supply chain business intelligence tool, SpendLINK®, to support strategic sourcing decisions. This industry-leading tool rapidly aggregates contracting and procurement data to help organizations pinpoint savings opportunities and benchmark the price competitiveness of their supplier contracts relative to those of other hospitals and health systems. UHC’s educational resources and programs, including its Value Analysis Program and Technology Assessment Program, will also be provided to Beaumont Health.

“Over the past two years, UHC and Beaumont Health System have had a successful partnership focused on helping the system achieve greater savings across its supply chain,” said Jake Groenewold, UHC’s senior vice president, Supply Chain. “We are excited to continue our collaboration and to extend it to the entire network of hospitals that make up the newly formed Beaumont Health. We will help the organization take advantage of the opportunities presented by aggregating procurement across operations and utilizing the suite of UHC data tools to deploy best practices and improve overall performance, both clinical and operational.”

About UHC

UHC is an alliance of the nation’s leading nonprofit academic medical centers, which are focused on delivering world-class patient care. Formed in 1984 and based in Chicago, UHC fosters collaboration with and among its 117 academic medical center and 328 affiliated hospital members through its renowned solutions in the areas of performance improvement, comparative data and analytics, supply chain management, strategic research, and public policy. UHC helps its members achieve excellence in quality, safety, and cost-effectiveness. For more information, visit

About Beaumont Health

Beaumont Health is a not-for-profit organization formed by Beaumont Health System, Botsford Health Care and Oakwood Healthcare to provide patients with the benefit of greater access to the highest quality, compassionate care, no matter where they live in southeast Michigan. It consists of eight hospitals with 3,337 beds, 163 outpatient sites of care and more than 5,000 physicians. Beaumont Health is southeast Michigan’s largest health care employer with nearly 35,000 employees. In 2014, the combined organizations had 174,675 inpatient admissions, 16,213 births and 492,073 emergency visits. For more information, visit


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