Intalere Member Best Practice Spotlight – Virginia Mason Medical Center – Virginia Mason Memorial Supply Chain Integration

ISSUE

With Supply Chain expenses for medical supplies, devices and implants hovering around 10% of an organization’s total net revenue, this is an area where economies of scale, negotiating power and collaboration come together to make healthcare more sustainable and cost effective. The Virginia Mason Health System is committed to taking advantage of these opportunities through a team-centered approach which results in better financial results and improved, focused patient care.

SOLUTION

A team consisting of Virginia Mason Supply Chain leadership, Intalere and Health Resource Services (HRS) representatives instituted weekly meetings that focused on sharing best practices, analyzing standardization opportunities, identifying technology solutions and developing joint project plans. Intalere Savings Roadmaps identified savings opportunities available by simply taking advantage of existing Intalere and HRS regional agreements without any conversion, known as Quick Wins, or by aggregating volume and tier optimization. These Quick Wins accounted for approximately $532,723 in aggregated savings in 2016 and was accomplished without having to convert any suppliers.

OUTCOME

Virginia Mason Health System was able to prioritize and implement more than 60 contracts and tier adjustments. Total savings for phase one of the project topped $1.2 million for the health system. In later phases, the health system will work with Intalere and HRS in the areas of physician preference items, purchased services and other non-labor spend.

ABOUT VIRGINIA MASON MEMORIAL

Established in 1920, Virginia Mason Health System is a non-profit organization offering a system of integrated health services. A multispecialty group practice of more than 460 employed physicians, it offers both primary and specialty care as well as an acute care hospital, licensed for 336 beds.

Check out the project video and view the Virginia Mason page in the 2017 Intalere Best Practices Compendium. Read the full success story.

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