Home' The Source : Third Quarter 2010 Contents The team's strategy of negotiating with physicians is
collaborative, not confrontational. "We employ a build-
ing block approach that uses clinical data and respects
the physician's expertise as a scientist," Keller says.
The Medical Device Sourcing team has worked with
varying levels of reimbursement environments, patient
demographics and geographical settings, from high-
volume for-profit hospitals in urban settings to not-
for-profit, limited-contract hospitals in smaller areas.
"Across very diverse market dynamics and surgeon
practice patterns, we have employed the same process-
driven strategy and seen the same results," Jones says.
"It validates that what we're doing is e ective for mem-
bers and can be customized to their needs."
HealthTrust's team stays engaged with the member
throughout the process. "Even when the engagement
is over, we're there to validate pricing and to ensure
the member gets the contract they think they signed
up for," Jones says. "Some consultants will take you
to the edge---get the contract done, then they're gone.
But that's where the work really starts---you need us
most after a contract is signed."
After incorporating member input from pilot phases
of the program, the Sourcing team is ready and avail-
able to o er these services to the larger membership.
"The only critical feedback we've heard is, 'Can you
do this faster?' " Keller says. "Once a member sees the
potential savings that can result from this service, you
can't move fast enough for them."
Mo at admits that the transformation has been
challenging, but it has already brought improvements
for his hospital system, not only process-wise, but also
when it comes to information quality. "We have de-
fined ourselves as a presence, and vendors know they
need to come through this o ce now. We also have a
lot better pricing information and can easily tell when
there's a price discrepancy." And, most important for
his bottom line, he is forecasting a double-digit cost
reduction from baseline.
"I know we wouldn't be where we are without Doug
Jones, Ty Dixon [group director, Medical Device
Sourcing Solutions] and the team," Mo at says. "We're
setting a precedent as health-care providers: We need
to take better control of this large area of our busi-
ness---supplies being second only to labor expenses.
Controlling costs has been a real lever we can use to
increase our competitiveness in the market."
With labor as a hospital's largest
expense---representing 40 percent
to 52 percent of operating revenue---
HealthTrust realized that members
could benefit greatly from a rela-
tionship with a centralized, national sta ng solu-
tion. Their search for a vendor-partner led them to
All About Sta ng (AAS), which started in 2003 as a
wholly-owned contract labor management and nurse
recruiting subsidiary of HCA. All About Sta ng was
looking to expand its successful model to facilities
outside of HCA, so a relationship with HealthTrust
was a perfect next step in their growth.
HealthTrust's Sta ng Management service through
All About Sta ng helps members overcome their
labor-related challenges. Because AAS has relation-
ships with more than 650 vendor partners across
the country, tapping into their negotiating power is
a game-changer for many organizations.
"When we've asked facilities to share their contract
labor spend with us, many don't have a firm grasp on
their expenses," says Anthony Pentangelo, chief
operating o cer, AAS. "As a national organization
with our size and volume, we use our contracting clout
and market leverage to manage costs well---helping
facilities get a true grasp of their labor spend."
HealthTrust member Catholic Health Initiatives
(CHI) is one of the largest not-for-profit IDNs in
⟀ Cover Story
Catholic Health Initiatives
Initiatives' (CHI) 73
hospitals were working
with multiple vendors
and conducting their
own labor negotiations
for outside sta ng. CHI
wanted to make their
process more e cient
and more cost-e ective
by getting the best
pricing in the various
markets where these
hospitals were located.
evaluated whether it
would be more cost-
e ective to develop an
internal sta ng solution
or if they should continue
to outsource their sta ng
needs. If they continued
to outsource, they needed
to find one national
provider that covered all
of their markets.
The decision was
made to continue to
outsource their sta ng
needs, and CHI formed
task force to evaluate
the industry's market
leaders and develop a
national agreement to
best suit the needs of
all CHI hospitals. At the
same time, All About
Sta ng, a service owned
by HCA since 2003, was
expanding its business
model to o er services
Continued on page 26
The Source | Third Quarter 2010 25
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