New initiative aims to drive down supply spending on highest-value, highest-quality products through aggregated purchasing
Premier Inc., a leading healthcare improvement company, announced the launch of a unique new national program designed to drive the highest-level commitment and savings for members through aggregated purchasing of high quality products and services. The collaborative will also leverage Premier’s robust tools and services to measure and improve the cost and quality of care. Standardizing the care delivery process is a central pillar within the total cost management approach in achieving highly reliable care.
“This program is a way for Premier to provide a contracting platform for our most committed members based on their ability to drive standardization and transform the supply chain,” said David A. Hargraves, Senior Vice President of Supply Chain at Premier. “Top performing organizations understand the value of reducing variation and assessing utilization to improve quality of care, drive greater efficiencies and reduce operating costs. Scaling these supply chain best practices across our alliance will provide a new benefit to both our members and our contracted suppliers.”
The new program will bring together Premier’s most committed members who are able to coordinate purchasing decisions and maintain standardization across their facilities. Through this unique collaboration, Premier members participating in this program are expected to achieve the scale needed for maximum price concessions. By providing additional value to Premier contracted suppliers through volume and commitment, the program is expected to achieve best-in-market pricing in every category chosen for members.
“Faced with drastic reimbursement and 340B cuts, providers are in desperate need for savings. Top-performing companies in healthcare and other industries have streamlined their supply chains around preferred vendors to reduce variation, enable utilization analysis and reduce costs,” said Rich Statuto, president and CEO of Bon Secours Health System and the Chairman of Premier’s Board of Directors. “I believe Premier’s Highly Committed Program will scale this practice to a new level, and we’re excited to take part in this.”
Building on the work performed today by Premier’s member-driven sourcing committee, the program will incorporate a specialized clinical review by leveraging PremierConnect® clinical, operational and financial data and incorporate feedback from physicians to assess and select supplier products based on quality, safety and compliance to regulatory and FDA standards.
The program will be led by a select group of core members with significant aggregated spend that can achieve and maintain compliance across their facilities. This group will develop and drive the strategy for the program, as well as make all contracting decisions. Additional members will be invited to join the program following the initial launch.
The new program, complements Premier’s existing ASCEND performance group, by offering even greater savings at a correspondingly higher level of commitment. ASCEND, one of the nation’s largest committed programs with over 120,000 acute care beds and combined purchasing volume of more than $18 billion, continues to drive significant savings for participants. To drive competition, lower costs and help prevent shortages, Premier combines compliance-based contracting, advocacy and direct sourcing programs to attract more drug manufacturers – fostering healthier markets with lower barriers to entry.
SOURCE: Premier Inc.