Community Hospital had been part of a nationwide network for supply contracting and group purchasing for orthopedic implants, which subjected it to volume-based tier pricing. According to the case study, Community Hospital was paying 50 percent more than larger hospitals.
CHC was able to analyze the 25-bed hospital’s needs in supply spend, revenue cycle and productivity. This helped the hospital shift the responsibility for preoperative supply chain management from clinicians to the hospital’s materials management department, resulting in less waste. Other services performed include:
• Converting Community Hospital to CHC’s group purchasing organization
• Negotiating a custom orthopedic implant contract
• Developing an operating room relocation plan following an expansion project
• Driving perioperative process improvement
• Rolling out CHC’s Productivity Tool to every cost center in the hospital
According to the study, similar savings are expected for fiscal year 2013.
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