In 2018, the five-hospital system constructed a systemwide, physician-led decision-making structure to evaluate products and services under a cost, quality and outcomes lens. While pursuing the reduction of healthcare-associated infections, Kaleida Health attained greater standardization, savings and price parity, Premier said in a June 17 post.
With this value analysis strategy, the system saved more than $17.7 million in 2022. Optimized contracts for purchased services saved another $1.1 million in 2023.
Purchased services are difficult to control, but by centralizing spend, avoiding waste and sourcing competitive contracts, the hospital system is looking “beyond low-hanging fruit,” Premier said.
Throughout 2024, Premier and Kaleida are working on 15 initiatives, including health equity and continuum of care alignment, that represent $64 million of spend.
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