'Premier' Group Purchasing Contracts Save Jefferson Hospital $1.2 Million in 9 Months
$3.4 Million Savings to Jefferson Health System
Since implementing the first contract with Premier last August, Jefferson Hospital has now saved $1.2 million in group purchases under a collaborative agreement with Main Line Health hospitals.
Each of the six hospital members of the Jefferson Health System (JHS) now purchases equipment and supplies through Premier, the largest group purchasing organization in the country, representing 1,800 hospitals nationwide, or one-third of all not-for-profit hospitals.
Says Robert C. Burkholder, Jefferson's Director of Purchasing, Materiel Management: "Working with Premier has the double advantage of getting the best prices and helping to standardize supplies system-wide."
"Jefferson and the other JHS member hospitals decided it would be in our best interest to work with one group purchasing organization. We chose Premier, and the savings since speak for themselves."
Since 1986, Jefferson Hospital handled its group purchases through the University HealthSystem Consortium (UHC). Jefferson continues its strong relationship with UHC in all areas other than group purchasing, says William J. Wardle, Jefferson's Assistant Vice President for Materiel Management.
Annualized savings for JHS tallied $3,432,145 as of April 25, with Jefferson's savings totaling $1,232,104 and Methodist Hospital's $336,403.
The four other JHS hospitals showing big savings are Lankenau, Bryn Mawr, Bryn Mawr Rehab and Paoli Memorial.
The four purchasing categories yielding the most savings to Jefferson under Premier contracts as of April 25: IVs and surgical supplies through a Baxter corporate agreement, $494,000; X-ray film, $166,802; contrast media, $132,541; forms, $123,604.
"These savings are possible because we have made a system-wide commitment to utilize Premier's contracts and associated competitive pricing, in exchange for some freedom of choice we've enjoyed in the past," says Mr. Burkholder.
Continuing review of Premier contracts are part of weekly meetings Mr. Burkholder holds with his JHS peers: Victor Howe, Director of Procurement, Main Line Health, and Anthony Renzi, Director of Purchasing, Methodist Hospital.