Health systems are facing increasing pressure to manage costs, ensure supply availability, optimize contracts and improve operational effectiveness. For many organizations, particularly those without the scale or internal expertise, capturing meaningful savings and supporting overall financial health while maintaining physician alignment can feel out of reach.
Through the Pointcore Supply Chain Collaborative, member organizations gain access to strategic contracting support, aggregated spend and clinically integrated sourcing – enabling them to achieve measurable results across multiple supply chain categories. The following three examples highlight how Pointcore delivers value across key supply chain categories.
1 – Driving Savings Through Aggregated Contracting
CHALLENGE
When the Collaborative first explored aggregated contracting, spinal hardware presented a complex test case: seven member facilities performed spine surgery with highly variable surgeon preferences, making it difficult to standardize while still leveraging scale for competitive pricing. Pointcore needed to create a spinal hardware portfolio that could address the needs of all members.
SOLUTION
Pointcore combined $13.5 million in spinal hardware volume to take to market and developed a pricing model that directly engaged surgeons. By capping prices across four key suppliers and aligning nearly 90% of market share commitments among them, the Collaborative ensured both surgical buy-in and purchasing strength. Deep data modeling compared current pricing to national benchmarks to target top-quartile costs, and executive leadership and surgeons were engaged multiple times to secure alignment.
RESULTS
- Approximately $2.74 million were achieved in net savings, which was a 20.2% reduction.
- The market share remained around 93% with the top four suppliers after two years.
- Pointcore was positioned as the centralized resource for new product requests with surgical leader guidance.
2 – Optimizing Physician Preference Items (PPI)
CHALLENGE
Hip and knee arthroplasty had historically achieved top-quartile pricing but needed a refreshed contracting strategy that could extend competitive terms across all members without sacrificing surgeon support.
SOLUTION
Pointcore merged more than $31 million in hip and knee volume and created a capitated component pricing model with surgeon engagement, capping the price for similar components across suppliers. The model structure secured a 90% commitment to the top five suppliers. This was achieved by collaborating with the administrative teams and orthopedic surgeons of Collaborative members to ensure alignment throughout the negotiation. Late-stage engagement with suppliers also helped prevent non-compliance.
RESULTS
- $3.9 million in net savings was achieved, which was a 12.5% cost reduction.
- All five contracted suppliers delivered similar top-quartile pricing
- Smaller Collaborative members saw greater relative benefit due to their starting price points, while larger members supported the agreement for overall membership value.
To continue reading about the third example of how Pointcore delivered value in supply chain, read the full case study on Pointcore’s website.
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