Understanding Purchasing Coalitions And Current Trends
A strong partnership between a provider and a supplier is critical for a healthcare facility to deliver the best care for the best price to their patients. This can be done most effectively when the providers and suppliers work together and where the value is more important than just the bottom line price.
Check out this article below from jhconline.com that explains the benefits of Purchasing Coalitions and how they can be used by Supply Chain Managers to not only lower costs of healthcare products but to help decrease the length of stay and bring quality products at the most economic value. After reading the article, give us a call at SpendBridge so we can meet with you to set up the best supply chain process for your healthcare facility.
Source: jhconline.com | Re-Post SpendBridge 10/30/2017
Purchasing coalitions are more relevant today than ever as they evolve to meet and support the expanded role that supply chain leaders are playing. Although purchasing coalitions may have initially formed in order to aggregate spending to drive down pricing, these groups now focus on far more advanced initiatives, according to supply chain leaders who spoke on a panel at this year’s Association of National Account Executives meeting.
“It is not just about bottom-line savings today,” said Kim Moon, director of supply chain for Tucson Medical Center, part of Vizient’s West Coast Purchasing Coalition. “We have to look at healthcare across the continuum of the patients’ lives and we need suppliers to partner with us to drive down the length of stay and bring quality products at the most economic value.”
For Moon and TMC, being a part of an RPC is key, not just to better pricing, but to the health provider’s survival. “The bottom line is that we have to provide quality patient care at a reasonable price, or our stand-alone facility won’t be standing for much longer.” For this reason, she believes that the future will continue to see coalitions grow and merge and get bigger and better.
The starting point
One of the primary values RPCs provide to their members is by working to extract additional value out of GPO contracts.
“When [our GPO] goes out and negotiates national contracts, the idea at CCG is not to come off any of those awarded suppliers – it is to extract the best value out of one of those suppliers,” said Shaun Clinton, SVP, supply chain, Texas Health Resources. “I think 15 years ago I would have just said, ‘Give us your best price.’ I think value is really starting to change on that and hopefully will become less transactional.”