Home' The Source : First Quarter 2011 Contents hospitals. In an e ort to simplify getting started,
Health Management chose to pilot the program for
some of its Florida hospitals, beginning in August of
2010. It's now 80 percent complete.
"There are no shortcuts to doing this right," Horne
says. "Anyone considering a device savings program
needs to plan for the amount and type of data needed
for an accurate analysis as well as the communica-
tion requirements." What set HealthTrust apart for
Horne was the level of expertise the SourceTrust
team brought to the engagement.
"When it comes to physician discussions, we want
to communicate with them in a way that respects
their clinical decision-making and demonstrates
that we understand their world," says Doug Jones,
assistant vice president of Clinical Operations with
HealthTrust and a former executive with a major
orthopedic device company. "We help illustrate the
balance between financial value and clinical cred-
ibility," he adds.
Horne agrees. "SourceTrust partnered with us for
those critical one-on-one meetings with each of our
surgeons, and they expertly explained the balance be-
tween physician choice and negotiating better pricing
with the suppliers we already had in place," he says.
"We engaged in a capitation model with these
hospitals, not only to reduce costs, but also to create
parity across vendors by establishing relevant market
prices," Horne says. They determined relevant prices
through research of reimbursements under govern-
ment health-care programs, comparisons between
increases in reimbursement levels versus vendor
price increases, purchase data, product usage for
procedures and other similar information.
"After consideration of all this data, we established
fair capitated prices for the market," Horne adds.
While negotiation continues with two vendors,
Health Management projected significant savings
for 2010 with additional savings for 2011.
The Local Advantage
Physicians have said for years that health care is a
local business, and Jones says that definitely di er-
entiates HealthTrust from other GPOs---HealthTrust
takes the time to understand local market dynamics
and create a contract strategy that will resonate with
everyone, including suppliers.
What Makes SourceTrust Unique
Many hospitals have attempted medical device
savings initiatives on their own or with other
GPOs without success, causing a bit of a
"hangover e ect." It seems either physicians
were upset because choice was too narrow or the programs
didn't achieve savings projections. HealthTrust encourages
them to give it another try with the SourceTrust team
because of these unparalleled advantages:
• A collective resume no other GPO can even come close
to, with a dedicated team of 14 experts whose experience
spans medical device contracting, clinical operations, sales,
audit and financial analysis in orthopedics, cardiovascular,
spine and medical technology.
• Expert project leadership that leverages clinical
expertise and market knowledge to deliver a defined return
on investment in:
-- Cardiology (interventional, electrophysiology, CRM and
-- Spine and biologics
-- Orthopedics (hip, knee, small joints)
-- Trauma and sports medicine
• Experience with multiple successful programs, using
a three-phase approach from analysis and strategy
development through alignment and actual implementation.
• Ongoing support to help you meet savings goals,
navigate new technology that vendors introduce post-
negotiations, and evaluate if that new technology is right
for your facility.
• A track record of significant savings across diverse
markets and facilities.
• An expert team skilled in talking with hospital
leadership, physicians and suppliers to create the full
stakeholder buy-in needed for a program like this to help
realize your savings goals.
• Clinical and contracting experience to pinpoint the
tactics vendors are using to over-sell and/or over-price
many of the devices currently in use at your facility.
Learn more about SourceTrust through your account
manager or by contacting HealthTrust at (615) 344-3000.
"SourceTrust partnered with us for those critical one-on-one
meetings with each of our surgeons, and they expertly explained
the balance between physician choice and negotiating better
pricing with the suppliers we already had in place."
---John Horne, corporate director of Materials Management, Health Management Associates
The team's extensive knowledge of the
various service lines supports physician
collaboration, which is key to delivering
custom medical device contracts that
are specific to local market dynamics. In
working with Health Management, many of the vendors that participated in the
negotiations have agreed to extend the pricing across all Health Management
facilities, adds Greg Mays, group director of SourceTrust and former sales and
territory manager with two orthopedic device companies.
Based on the success that Health Management (www.hma.com) has had with
spine device sourcing for its Florida facilities, they plan to engage SourceTrust
in additional programs. S
28 First Quarter 2011 | The Source
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