Category Archives: sourcing services

Consolidation Trend Continues: Tufts Medical Center and Lowell General Hospital Forming System

Tufts Medical Center and Lowell General Hospital are joining forces to form a new health care system they say will offer lower-cost medical services from Southern New Hampshire to south of Boston at a time of changes sweeping through the industry. The alliance would link a 415-bed Boston teaching hospital that has been scrambling for a niche in the fast-consolidating market with one of the state’s largest community hospitals. Lowell General, which two years ago took over a crosstown rival, Saints Memorial Medical Center, has 434 beds on two campuses. Under terms of a tentative agreement approved by both boards, each nonprofit [...]

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University of Kentucky Hospital Joins Virginia Purchasing Collaborative

The University of Kentucky Hospital in Lexington, Ky., announced  today that it has joined the supply chain collaborative established  by the University of Virginia Health System in Charlottesville, Va., and VCU Medical Center in Richmond, Va. In 2007, the two Virginia hospitals combined their purchasing efforts and began working with UHC and its supply contracting company, Novation. The University of Kentucky Hospital will now also benefit from the power of combined purchasing volume, which will help all three hospitals reduce their costs. University of Kentucky Hospital, University of Virginia Health System, and VCU Medical Center are all participants in UHC Supply Chain Intelligence, through which they have access to an extensive portfolio of product [...]

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Friday Rant: Something Old, Something New, Something Borrowed…

What happened to the good ol’ days –you know, when SCM vendor marketing budgets were properly anemic? SAP announced the concept of a “Supply Chain Control Tower” a little over a week ago at its supply chain conference in Las Vegas. If you’re curious about what it is, here’s my stab at it: Great marketing. Dammit, it’s a control tower not a dashboard! And because most of us in the SCM space have little experience dealing with a well-financed, first degree marketing assault, it will probably work —and that’s a good thing. If nothing else, it is validating the work of [...]

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Direct Contracting Trend: aptitude Signs the West Coast Purchasing Coalition (WCPC)

Late yesterday, aptitude announced that the West Coast Purchasing Coalition (WCPC), a 22-member hospital network spanning Arizona, California, Hawaii, Oregon and Washington, will be using the company’s direct contracting solutions. Since launching nearly a year ago, aptitude’s contracting speed –time to value– has proved to be the big attraction.  Shortening the contracting cycle from several months to an average of 38 days  has been cited repeatedly by aptitude customers as the marketplace’s most distinguished and compelling benefit, and the coalition expressed the same sentiment:  ”The ability to contract efficiently is a necessity in our business, and the aptitude platform can provide that functionality,” said Bob Hemker, Palomar Health’s [...]

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Premier Acquires MEMData –New Capabilities To Help Providers Reduce CAPEX and Construction Costs

Premier, Inc. PINC +0.22% today announced it has acquired MEMdata, LLC, an equipment planning, sourcing and analytics business focused on capital equipment needs for existing medical facilities, as well as those under construction. The addition of MEMdata’s capabilities is expected to enhance Premier’s ability to drive meaningful supply chain savings for its hospital and health system members in the high-cost areas of construction and capital equipment acquisitions. “Capital equipment is a large-spend category that presents challenges for our members since products are purchased infrequently and technology changes rapidly,” said Premier President and CEO Susan DeVore . “Capital equipment planning is an [...]

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Applied Analytics: Deloitte Survey Reveals Forensic Mindset Needed to Assess Supply Chain Risks

As complexity in global supply chain networks continues to increase, less than one-third (26 percent) of business executives are using data analytics tools and processes to help manage third party relationship risks, according to a new Deloitte survey. Thirteen percent of those surveyed are still learning how to use analytics software and 22 percent use no data analytics at all. “Many market leading companies leverage advanced data analytics tools and forensic accounting to identify anomalies in their transactional data,” said Mark Pearson, principal, Deloitte Financial Advisory Services LLP. “Using a forensic mindset when analyzing big data can provide value to [...]

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ACell Enters National Purchasing Agreement with Novation, Awarded Innovative Technology Designation for MatriStem® Devices

ACell, Inc., a leading regenerative medicine company focused on the development, manufacturing and commercialization of tissue repair products, today announced that it has entered into a national purchasing agreement with Novation for the Company’s MatriStem® devices. The MatriStem devices also were awarded the elite Innovative Technology designation from Novation. The designation underscores the clinical benefits of ACell’s standalone MatriStem technology for surgical soft tissue repair and complex wound management. The new contract with Novation marks the second major group purchasing organization agreement for the Company, effectively broadening physician access of MatriStem to an additional 100,000 healthcare providers. Novation awarded ACell’s MatriStem [...]

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Single Use Devices (SUDs) –Sustainability and Cost Savings Creating Perfect Storm For Demand Growth

The size of the medical disposables market is massive and still growing. According to a recent report by Freedonia Market Research Group, “US demand for disposable medical supplies is forecast to increase 4.3 percent annually to $46.7 billion in 2016.” From general surgical tools to the most commonly used in specialized orthopedic and arthroscopic applications, single use devices (SUDs) have found their rhythm under the cover of “sustainability,” of all things. And because it’s now fashionable to make a case for change on the basis of cost savings –if nothing else– the SUD manufacturers are experiencing a perfect storm in customer [...]

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GHX Begins Restructuring One Week After Its Acquisition

GHX  is “restructuring” its workforce, company officials confirmed Tuesday. When asked about layoffs, GHX officials would not comment on how many of the company’s employees were affected. But as of yesterday, GHX had not yet notified the Colorado Department of Labor and Employment of any such reductions, so who knows? Of course, what’s interesting is that the action comes just a week after  PE firm Thoma Bravo completed its acquisition of the company. “Today, GHX realigned its organization to strategically invest and position the company for growth across its global operations,” GHX officials said in a statement e-mailed to the Daily Camera [...]

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Medical Startup News: ActualMeds Wins Venture+ Forum at HIMSS 2014

Late last week, ActualMeds, a provider of web-based platforms to facilitate patient data collection and automate coordination of care for medication management in patients with chronic diseases, announced it was selected as the winner of the 2014 Venture+ Forum pitch contest for startups at this year’s HIMSS Conference. At this year’s Venture+ Forum, ActualMeds was one of 20 pre-selected companies that were given the opportunity to pitch their products, services and solutions to a panel of leading experts in healthcare investment, business and technology. “Many times, the only opportunity a healthcare provider has to engage complex patients is at the [...]

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Taxing Hospitals Not Working Out for Connecticut –Bad For Business

The Connecticut Hospital Association said last week that collectively state hospitals saw their operating income decline by $175 million in 2013, based on financial reports filed with the state Office of Health Care Access. For example, Stamford Hospital saw its net revenues decline by about $15 million in 2013. The three hospitals that now comprise the Western Connecticut Health Network — Danbury, New Milford and Norwalk — also saw their net revenues decline by $14.5 million, a trend being repeated throughout the state, except in just a few hospitals located in the state’s most affluent communities. What happened? While there were [...]

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aptitude’s Early Adopters Like the Simplicity —and Speed to Savings

Smooth and quick are not adjectives typically associated with healthcare, especially in the supply chain arena. But when Massachusetts based supplier AliMed began adopting aptitude as one of its contracting platforms, they quickly saw the benefits of working within an environment that drives parties to quicker and better informed decisions. “It’s a clear path that drives to resolution within a 30-day window,” said Peg Fradette, AliMed Sr. Vice President of Sales. “In the analog world you’re sending RFIs, RFPs and there’s a seven to twelve month wait period. So the simplicity of aptitude was very appealing to our sales team [...]

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Truven Health Analytics Announces 100 Top Hospitals Award Winners

The Truven Health 100 Top Hospitals study identifies hospitals and leadership teams that provide the highest level of value to their communities, based on a national balanced scorecard. The 100 Top Hospitals balanced scorecard measures hospital performance across 10 areas: mortality; inpatient complications; patient safety; average patient stay; expenses; profitability; patient satisfaction; adherence to clinical standards of care; and post-discharge mortality and readmission rates for acute myocardial infarction (heart attack), heart failure, and pneumonia. The study has been conducted annually since 1993. “Employers and payers are increasingly seeking network hospitals that consistently provide demonstrated value — hospitals that deliver higher [...]

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Contract Manufacturers Riding a Wave of Demand for More Personalized Medical Devices

Long recipients of the iconic stiff arm –or did I mean to say “ironic”– contract manufacturers have clearly found their rhythm in the medical device marketplace. Why ironic? Because branded manufacturers in highly regulated markets, like medical devices, have been slow to embrace contract manufacturing options, fearing quality-related liabilities and diminished production/capacity flexibilities –the very benefits that turn out to be the basic tenets of the contract manufacturer’s value prop. To be considered competitive these days, contract manufacturers must be turnkey solution providers –from design services thru manufacturing to reverse logistics.  And for contract manufacturers wanting to play in the [...]

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Thoma Bravo Completes GHX Acquisition

San Francisco and Louisville, Colo. – March 11, 2014 – Thoma Bravo, LLC, a leading private equity investment firm, has completed its acquisition of Global Healthcare Exchange, LLC (GHX), a provider of connected, intelligent healthcare supply chains. “GHX is one of the most significant companies in healthcare today because of its focus on enabling better patient care and billions in savings for providers and suppliers in the healthcare community,” said Seth Boro, managing partner at Thoma Bravo. “We wanted to partner with GHX and its management because the company is leading the charge in transforming the healthcare industry supply chain model to deliver cost [...]

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Deloitte and NNEACC Announce Collaboration to Offer Value-based Care Solution

Deloitte announces today a groundbreaking collaboration with the Northern New England Accountable Care Collaborative (NNEACC) to deliver services, technology, analytics and insights to enable value-based care. Deloitte and NNEACC will offer a solution called “Insight” that will help U.S. health care providers make the shift to a health system defined by population health and risk-based contracts. Founded by Dartmouth-Hitchcock Health System, Eastern Maine Healthcare Systems, Fletcher Allen Health Care, MaineHealth and Dartmouth College, the NNEACC is a value-based care collaborative providing leading solutions that enable health providers to manage population health. Since its inception, NNEACC has been leveraging ConvergeHEALTH by Deloitte’s [...]

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