Category Archives: Intermediaries/GPOs +

Physician Led Change Management

The online healthcare marketplace continues to automate –very nicely–  especially at the transaction level. MedAssets’ partnership with Ariba should push the volumes through its trading exchange into orbit, GHX continues to grow and dominate its niche, and SCM solution providers (the tool vendors and consultancies) are actually making excellent headway convincing both their aligned and unaligned hospital customers that the “the virtual GPO” model might be a better mousetrap, at least for certain categories of spend; that throwing it all in with an established business exchange is not always justified and that taking back certain responsibilities that were previously outsourced [...]

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Sourcing Optimization Hits Its Tipping Point

A recent post highlighting successful applications of sourcing optimization in healthcare (“Sourcing Optimization in Healthcare –“It’s Alive”) garnered a significant amount of attention. The post provided an edited description of what the technology enables. It also mentioned my interview with Harry Kirschner, The Advisory Board Company’s managing director, and the noteworthy success his firm is having in providing optimization-enabled solutions to the healthcare markets. Although there are now several reputable strategic sourcing and/or purchasing software/service providers that are promoting their ability to provide “optimization-powered” solutions (e.g. take a look at SpendMatters’ sponsorship roster), I specifically cited BravoSolution as a “worthy [...]

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Parallon Acquires The Outsource Group to Enhance RSM Capabilities

Tennessee-based Parallon, a major provider of business and operational services to the healthcare industry, today announced that it has agreed to acquire The Outsource Group, a nice-sized national player in the healthcare revenue cycle management space. Following up on last year’s acquisition of Martin Fletcher, a leading staffing and recruiting firm that was bought to enhance the company’s workforce management solution range, buying The Outsource Group is all about building on the company’s revenue cycle management capabilities. I thought it might be helpful to remind everyone that beyond its revenue cycle and workforce management solutions, Parallon provides supply chain services, [...]

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Sourcing Optimization in Healthcare –It’s Alive!

What follows is an edited version of a two-part series originally posted in SpendMatters, written by CombineNet’s former CTO, Dr. Jason Brown. I’ve made some edits that I know my friend Jason wouldn’t mind, trying to provide a little more healthcare context. Far too many sourcing professionals still don’t “get” the business case supporting sourcing optimization –and not because they’ve had a bad experience  Chances are, they haven’t had one. Why? Well, for starters, optimization requires clean data –not a common commodity in healthcare. But vendors capable of delivering optimization-powered strategic sourcing solutions are prepared to fix this problem to [...]

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Medical Device Industry Continues to Lead with its Chin

I watched the movie “Rounders” over the weekend –one of my personal favorites. In case you haven’t seen it, it’s a movie about the seamy underbelly of the poker world, where the game’s best players, those who actually make a living at it, scoff at the notion that their passion is nothing more than “a game of chance.” Why the reference to “Rounders?” Because I want to know those of you who actually believed that the medical device companies wouldn’t be passing on the 2.3% excise tax to their customers. Please raise your hands –just for future reference. Not that [...]

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Big Data At Its Best: PremierConnect Driving Next Wave For Members

Adventist Health System (Altamonte Springs, Fla.), Adventist Health (Roseville, Ca.), Adventist Healthcare, Gaithersburg, Md.) and Kettering Health Network (Dayton, Oh.) have pooled their $1.5 billion in demand to save money and improve care delivery. These same members had already saved $5.4 million since forming the initiative two years ago –on top of the more than $200 million combined in quality and cost improvement savings they achieved as Premier members over the same period. Obviously, there is nothing new about Premier members forming regional and national SCM collaboratives, but the success of Premier’s PremierConnect information sharing platform is driving these same [...]

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WalMart Will Transform Healthcare –Not a Question of “If” or “When,” but “Where”

At a recent healthcare conference, Marcus Osborne, Walmart’s vp for health and wellness joked with his audience suggesting that he didn’t even know why he was invited: “After all, Wal-Mart’s in retail, we’re not in health care.” The crowd responded with polite, but uncomfortable chuckles. I recently read a post in The Healthcare Blog written by Dan Diamond entitled, “Wal-Mart Could Transform Care –But Does It Want To?” I have to admit that my reaction was decidedly more visceral. In fact, I found myself having fun with imagining different titles for Dan’s post: “Walmart will Transform Care –Because It Can,” [...]

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Why ACO’s Won’t Fail — A Contrarian View?

Will ACOs succeed? Well, if you put a lot of weight behind what the industry’s “commentariat” are saying, you would be hard pressed to place a positive bet. I recently ran across a post by Les Funtleyder, the managing director of Poliwogg, where he took a contrarian view and gave reasons why ACOs will not fail. Here are some excerpts: When ACOs are touted as a saving grace for the system, you can almost hear the collective groan of the industry veterans. Ever the contrarian, however, we took the side of the debate that said ACOs will NOT fail. The [...]

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Novation Dishing Out The Awards at its Annual Supplier Summit

Novation recognized 22 suppliers yesterday at its annual Supplier Summit. These awards were given in recognition of the winners’ superior service provided to the health care organization members of VHA, UHC and Children’s Hospital Association. In addition, Novation also honored an overall supplier of the year with its second annual Mark McKenna award. Mark McKenna served as the president and CEO of Novation from 1999 through 2006. He passed away in October of 2011 after a lengthy battle with cancer. By honoring the overall supplier of 2012 who demonstrated outstanding service, this award continues McKenna’s legacy of putting hospitals and [...]

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California’s Community Medical Centers Joins Premier –PremierConnect Draws Them In

California’s Community Medical Centers joins the Premier Alliance. As central California’s largest healthcare provider and private employer and as a new member (“owner”) of Premier, Community now has the opportunity to collaborate with other Premier members –nearly half of the nation’s hospitals. “Community is excited to partner with Premier to overcome the challenges of this reform environment and lead others in adapting to the changing nature of care delivery with innovative solutions,” said Mr. Jack Chubb, CEO of Community Regional Medical Center. The locally owned nonprofit system will integrate data across its nine network facilities including three acute-care hospitals, as [...]

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A New IDN is Born: Allegheny Health Network Gains Regulatory Approval in Pennsylvania

What’s in a name? Highmark today announced the creation of Allegheny Health Network (AHN) as the region’s newest integrated delivery system. Having finally secured approval from the Pennsylvania Insurance Department on Highmark’s Form A filing, the hospitals and providers of West Penn Allegheny Health System (WPAHS) will now serve as the anchor of the newly formed and already growing Allegheny Health Network. “Today marks a historic and exciting day for health care in our region. I’m pleased to announce Allegheny Health Network as our integrated health care delivery network,” said William Winkenwerder, Jr., M.D., Highmark’s president and CEO. “Allegheny Health [...]

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Novation’s Aptitude Launches Today –One Approach to Solving the Local Contracting Problem

Roughly ten days ago, we reported on Novation’s formation of a new company, called Aptitude, that will offer hospitals and other providers an online platform to negotiate custom contracts for medical supplies and services. Aptitude will operate as a wholly owned subsidiary of Novation and its services will be available to all comers, not just existing members of its GPO network –surely an enlightened decision that directly addresses a well-known gap in terms of the current contracting solutions coverage provided by most GPOs.Indeed, I’ll soon be posting information about a alternative approach and solution that will be offered by MedAssets. [...]

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Premier & Phytel Partner to Provide More Comprehensive Ambulatory Care Solutions

Premier has partnered with Phytel to more fully automate population health services. The partnership enables a more comprehensive population health suite allowing providers to manage patient care more efficiently, with better understanding of outcomes and total cost. The solution uses predictive analytics to profile an entire population, not just those who have been treated. The intelligence garnered can more effectively support emerging care delivery and risk management models as providers participating in accountable care organizations (ACOs) are reimbursed based on quality and cost overall. Medicare Shared Savings Program ACO participant Thomas Auer, MD, CEO of Bon Secours Virginia Medical Group, [...]

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Can Unique Device Identification Improve the Patient Experience?

Healthcare Matters would like to welcome the following guest post from Rob Leibrandt. Rob is the Senior Market Manager at Camcode, makers of UDI Labels for Medical Equipment. Unique Device Identification (UDI) is critically important in the healthcare system. In July 2012, the U.S. Food and Drug Administration (FDA) proposed a rule (http://www.regulations.gov/#!documentDetail;D=FDA-2011-N-0090-0001) that would phase in, by device classes, requirements for medical devices to carry a unique device identifier. The benefits to implementing such a requirement include more accurate reporting and tracking of adverse events, more rapid identification of problems with specific products, better control over product recalls and improved patient [...]

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Novation Announces its “Period 2 National Group Buy” –Up to 71% Savings Opportunities on Capital Equipment

Late yesterday, Novation announced the launch of its group buys for the second period of 2013. These particular group buy opportunities are available April through June of 2013.  What’s on the table? Novation is saying that its members can achieve up to 71 percent savings in the following categories of capital equipment: Beds and cribs C-ARM systems Chemistry/immunochemistry Cleaning and decontamination Coagulation Cold storage (ends May 31, 2013) CT scanners CV suites Exam room equipment General radiography Hematology Holter monitors Mammography Micro ID sensitivity MRI (and MRI compatible infusion pumps (ends June 15, 2013) Non-invasive cardiology equipment Nuclear medicine Patient [...]

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The GPO Business Model Continues to Evolve –SCM Applications Taking the Lead

Novation has formed a new company that will offer hospitals and other providers an online platform to negotiate custom contracts for medical supplies. The new company, called Aptitude, will operate as a wholly owned subsidiary –and its services will be available to all comers, not just members of its GPO network. Such enlightened reasoning is becoming increasingly pervasive among the largest GPOs who are all starting to recognize that growth (in terms of market share) is difficult to achieve with an “all or nothing” mindset. According to an article that just appeared in Modern Healthcare yesterday, “Aptitude executives say the [...]

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