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Henry Bostic
Premier Inc.
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Illinois hospital realizes $7.8 million supply chain savings in 2.5 years as member of Premier healthcare alliance
Ingalls Health System moves from affiliate to Premier shareholder
CHARLOTTE, N.C. (April 30, 2008) – Delighted with more than $7.8 million in supply chain savings in the two and a half years since joining the Premier healthcare alliance, Ingalls Health System in Harvey, Ill., has enhanced its relationship by becoming a Premier shareholder.
Formerly a member of VHA, Ingalls joins 200 of the nation's leading hospital and healthcare systems who own Premier Inc. The agreement took effect in March 2008.
When the Chicago Southland region hospital first became a Premier alliance member in October 2005, the goal was to help the 563-bed medical center reduce its supply costs by $4.33 million in three years. That objective was nearly doubled six months ahead of the three-year deadline.
Chief Financial Officer Vince Pryor said the health system’s original plan was “to assess the relationship with Premier after three years, but we decided to become an owner almost a year earlier than scheduled because of the excellent value we have received. The determining factor in our decision to expand our relationship with Premier is that we have been able to demonstrate, without a doubt, significant and quantifiable savings. We could not be more pleased with Premier and look forward to continuing our strong collaborative relationship.”
Mike Alkire, president of Premier Purchasing Partners LP, said, “Our overriding goal is to help each of our alliance members perform at an optimal level. Ingalls is a very engaged member and its results speak for themselves. Their key staff members work hand in glove with our field team to drive savings. That collaboration makes it possible for this progressive healthcare system to provide the quality yet cost effective healthcare its community deserves.”
Alkire noted that Ingalls also benefits from membership in the Illinois Purchasing Collaborative (IPC), a program developed by the Illinois Hospital Association (IHA) which, after extensive evaluation, selected Premier as their national GPO partner. Ingalls reported savings in excess of $400,000 last year as a result of their IPC membership.
“The Illinois Purchasing Collaborative has been a great partner for us over the past two years,” Ingalls Director of Materials Management Harold Richards agreed. “The Collaborative has allowed us to aggregate our volume with other Premier owners and affiliates in Illinois. It’s a virtual IDN through which we can participate at the top tiers of contracts that we wouldn’t be able to achieve on our own.”
In 2006 IHA launched the IPC as the second state hospital association in the country to provide hospital members access to pricing tiers through regional aggregation previously unattainable. Currently, 25 hospitals participate in the IPC and benefit from Premier owner or affiliate status.
About Ingalls Memorial Hospital
Ingalls Memorial Hospital is the only community hospital in the South
Chicago suburbs with clinical services and outcomes comparable to major
medical centers. For the sixth year in a row it was named one of "America's
Best Hospitals," in the 2007 edition of U.S. News & World Report. Ingalls
ranked 36th in the nation for excellence in neurology and neurosurgery,
moving up from No. 41 in the publication’s 2006 ranking. Ingalls' specialty
product lines include comprehensive cardiac and cancer programs as well as a
full range of diagnostic treatment, education and rehab services. Research
programs rival large academic medical centers with some 100 ongoing clinical
trials. Ingalls is a hub for the South Cook County Emergency Medical
Services system and it also operates several strategically located primary
care practices.
About Premier Inc., 2006 Malcolm Baldrige National Quality Award
recipient
Serving more than 2,000 U.S. hospitals and nearly 50,000 other healthcare
sites, the Premier healthcare alliance and its members are transforming
healthcare together. Owned by not-for-profit hospitals, Premier operates one
of the leading healthcare purchasing networks and the nation's most
comprehensive repository of hospital clinical and financial information. A
subsidiary operates one of the nation's largest policy-holder owned,
hospital professional liability risk-retention groups. A world leader in
helping healthcare providers deliver dramatic improvements in care, Premier
is working with the United Kingdom's National Health Service North West and
the Centers for Medicare and Medicaid Services to improve hospital
performance. Headquartered in San Diego, Premier has offices in Charlotte,
N.C., Philadelphia and Washington. For more information, visit
www.premierinc.com.