Home' The Source : Second Quarter 2012 Contents calls, pharmacy initiatives, contracting alternatives and clinically
preferred products were discussed along with product substitutions
that could be undertaken to maximize HealthTrust contracts. The
pharmacy department was able to align many purchasing decisions
with HealthTrust contracts on their e ective date.
After the e ective date, monthly phone calls between HealthTrust
and HUMC pharmacy departments reviewed o -contract pur-
chasing to identify and rectify such purchasing with contracted
alternatives. "The process allowed the HUMC pharmacy to exceed
99 percent compliance with pharmacy purchasing within months
of becoming HealthTrust members," Willingham says.
With help from Scott Richardson, MBA, HealthTrust's direc-
tor of custom contracting for medical devices with SourceTrust,
Blomback and his team brought in current vendors for face-to-
face meetings to renegotiate contracts. One of the areas in which
HackensackUMC had the most success with contract renego-
tiations was physician preference items. "The SourceTrust team
helped us reach out to vendors on a national level rather than
the local rep level," Blomback says. "I had no ego in this at all; if
HealthTrust representatives could get better prices than I could,
that was fine with me."
While physicians weren't necessarily involved with contract
negotiations, Blomback did ask for their support in using the vendors
that were most cooperative. "If three vendors for an orthopedic
product were renegotiating contracts with us, and the fourth was
not cooperating, we asked the physicians to talk to the fourth ven-
dor about renegotiating, or simply use the other three and not the
fourth," Blomback says. "Physician buy-in was outstanding; they
understand the importance of a strong bottom line for dealing with
an 80 percent contract level
commitment, so vendors can count
on more than 80 percent of a member's
supply spend to use HealthTrust contracts.
In return, "we provide an aggregate
savings on spending that nobody else
can match," Richardson says.
2. Robust contracted $avings.
HealthTrust brings economies of scale in contracting, clinical,
educational, operational and supply chain that are unrivaled by
any other group purchasing organization.
3. A dedicated
HealthTrust's knowledge experts and vetted
contracts are available to achieve the savings goals
of each member, allowing members to focus on
their core mission of delivering patient care. "Our
members don't have to have a 100-member purchasing sta to hit their targets,"
Richardson says. "We score the savings for them at HealthTrust."
Individual facilities have limited bandwidth for tackling clinical or contracting
initiatives within their facility and lower purchasing volumes. By tapping into resources
across the membership, HealthTrust synergistically combines the best clinical minds
and committed volumes that are just not available in a single facility.
Why the HealthTrust Model Works
HealthTrust is able to help facilities like HackensackUMC save so much money because it o ers a targeted,
patients-first approach to contracting, as well as a combination of group purchasing volume and a committed
membership. "Because members continue to be committed to HealthTrust contracted vendors, the value o erings
from vendors are enhanced," says Harold Willingham, PharmD, MBA, HealthTrust's director of pharmacy clinical
contract negotiation, who worked with HackensackUMC on pharmacy conversion. "It is the true combination of
clinical evidence, purchasing power and committed members that allows HealthTrust to work with the members
and vendors to present a true win-win opportunity for everyone."
According to Scott Richardson, director of custom contracting at HealthTrust, the organization o ers three
distinct strengths to its members:
For members like HackensackUMC, which took advantage of
each of these HealthTrust strengths and maximized every con-
tracting and savings opportunity that HealthTrust had to o er,
the organization o ers tremendous savings. "HackensackUMC's
leadership understood and was committed to savings," Richardson
says. "They understood and promoted to their sta throughout the
hospital that realized savings goes straight to their bottom line and
adds to the health of their operations and patient care."
continued on page 32
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