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The pharmacy purchasing contract
began in October 2013 and by December
of that year, Sisters of Charity was 95 per-
In addition to clearly communicating
the directive that the first choice should
be buying through a HealthTrust con-
tract, Motz says it helped that HealthTrust
had a close working relationship with
Sisters of Charity's pharmacy distributor
"There was no learning curve there,
because AmerisourceBergen already knew
what the correct pricing should be," he says.
On an ongoing basis, Motz uses Health-
Trust's inSight spend analytics tool for both
med/surg and pharmacy to look for new
savings opportunities and to help ensure
his hospitals are paying the right price for
products they buy. "And inSight helps us
monitor our purchasing habits," Motz says.
"If we're buying anything o contract, our
goal is to get it on a contract."
At St. Vincent Charity Medical Center
alone, Motz has used inSight to identify
$80,000 in pharmacy cost savings.
Actual savings exceeded projected sav-
ings due largely to the success of medical
device sourcing agreements set up through
SourceTrust. Still, contracting for medical
devices had its fair share of obstacles.
At St. Vincent, annual spend on orthopedic
implants totals $3 million across 10 suppli-
ers, and annual spend on spine implants
totals $4 million across 14 suppliers.
"When you are spread across that many
suppliers, you don't have much purchasing
power," Motz admits.
SourceTrust was able to help Motz
improve St. Vincent's medical device
purchasing e ciency through price con-
cessions. Motz says, "Because HealthTrust
is able to connect us directly to the device
manufacturer in some cases, we're elimi-
nating extra distributions markups that can
be a big part of implant costs."
Sisters of Charity leadership and Motz
are now engaged in a new project with St.
Vincent leadership and medical sta to
consolidate the hospital's suppliers and
products. Armed with potential savings
data from SourceTrust, they are hopeful
it will result in an additional $2 million
in savings. Even at the other hospitals
where orthopedic and spine devices were
being sourced across just three suppliers,
SourceTrust was able to help Sisters of
Charity save more than $4 million.
With these and similar projects, Motz
credits the success of achieving the supply
chain savings while continuing to advance
the quality of care provided to patients
across Sisters of Charity Health System,
in large part, to the involvement of the
clinical care teams in the decision-mak-
ing process for cost-saving measures. The
pharmacy team and medical sta s at each
of the hospitals are involved every step of
the way in the decision-making process
for supplier reduction and pharmaceutical
Quality of care is preserved and advanced
by the ability to reallocate savings to
other areas of facility need. In fact, Mercy
Medical Center achieved accreditation as a
Joint Commission Certified Total Hip and
Total Knee Center of Excellence during the
supply chain transition process.
Throughout this and other work, Motz
engages the support of the SourceTrust
team, including Chris Stewart, assistant
vice president of clinical program develop-
ment and delivery, and Keith McReynolds,
clinical director, to help facilitate changes.
For example, as part of the SourceTrust
agreement, Sisters of Charity switched to a
new model of PEEK interbody spacers for
use in spine surgeries.
"Chris had personal conversations with
our physicians, which was instrumental
in gaining physicians' input and support,"
Meanwhile, McReynolds helped
Providence Orthopedic Hospital achieve
national benchmark pricing with its three
orthopedic suppliers by participating in
meetings with the hospital's physicians and
leadership, as well as with its suppliers. The
suppliers sat across a table from the hospi-
tal's physicians, who laid out their pricing
expectations. As a result, all three suppliers
adjusted their pricing.
"A big part of our success was having
physicians, the ones actually using the
products, deliver the message to suppliers,"
Motz continues. "And, we couldn't have
gotten them on board without the support
HealthTrust, in turn, applauds Motz and
his fellow Sisters of Charity leaders for not
being afraid to tackle the transition.
"Leadership at the system level has been
the driving force behind Sisters of Charity
achieving and exceeding its goal," says Jim
Dinnegan, HealthTrust account director.
"Andy empowers the supply chain and
value analysis teams to accomplish com-
mon savings goals together, making the
Jay M. Kirkpatrick, HealthTrust's
MidAmerica Region CEO, agrees that
a team approach made the di erence.
"Change is typically hard, but IDNs that
embrace it, engage with their physicians
and clinicians, and take a leadership role in
driving down supply costs are the ones that
truly benefit from HealthTrust's portfolio
of services," he says. "Andy and the entire
team at Sisters of Charity have done all of
these incredibly well."•
Med/Surg $4.2 million
SourceTrust $4 million
Total = $10.7 million
Sisters of Charity
Health System Savings
After Converting to
Second Quarter 2015 | The Source 45
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