Healthcare Matters

Although the Chargers lost to the Browns this weekend –-no offense to my friends in Cleveland— MedAssets’ Southern California-based sales team still had plenty of reason to celebrate. San Diego-based Sharp Healthcare, one of the 32 “Pioneer” Accountable Care Organizations (ACOs) selected by CMS, awarded a significant and strategic part of its supply chain management business to MedAssets. Specifically, Sharp selected MedAssets Spend and Clinical Resource Management solution-suite –a comprehensive offering of software and services designed to lower supply expense and improve spend utilization, using episode-of-care analytics.

Under terms of the agreement, Sharp expects to realize value from access to the buying power of MedAssets strategic sourcing solutions, including the company’s national group purchasing (GPO) contract portfolio for medical/surgical supplies, pharmaceuticals, laboratory supplies, capital equipment and construction services, food and nutrition, and purchased services. The health system will also utilize MedAssets data-driven clinical cost management capabilities to quantify and implement achievable cost-saving opportunities for physician preference items (PPI). Finally, Sharp will implement a number of MedAssets supply chain analytical tools.

“At Sharp, we always strive to provide our community with the best healthcare service possible,” said Ann Pumpian, senior vice president and chief financial officer, Sharp HealthCare. “This business relationship will support our ongoing efforts to find cost efficiencies as we manage amidst the financial pressures now pervasive throughout our nation’s healthcare delivery system. Lowering supply cost is yet another way we can support our vision of being the best place to work, the best place to practice medicine and the best place to receive care.”

“We are gratified that Sharp HealthCare has chosen MedAssets to deploy new sourcing strategies,” said John Bardis, chairman, president and chief executive officer, MedAssets. “MedAssets possesses a track record of helping healthcare organizations across the country achieve proven, sustainable savings and cost management success. We look forward to working with this valued new client in support of their mission to serve patients and their community.”

Sharp HealthCare is recognized for clinical excellence for services in cardiac, cancer and multi-organ transplantation, as well as orthopedics, rehabilitation, behavioral health and women’s health. The Sharp system includes four acute-care hospitals, three specialty hospitals, two affiliated medical groups and a health plan.

This is a nice piece of new business for MedAssets. The strategic sourcing of PPI and the resulting change management challenges can be daunting, but the savings opportunities can also be most rewarding. One of MedAssets’ first strategic acquisitions was Aspen Healthcare Metrics. Bridging the gap between clinical performance and supply chain management is its specialty. This kind of deal is right up its alley.

Source: 4-traders

—Tom Finn