News

FOR IMMEDIATE RELEASE

CONTACT:
Henry Bostic
Premier Inc.
704.733.5695

Arkansas non-profit hospitals announce $2.6 million savings in 2007, $11.4 million since 2000 through Premier healthcare alliance

Senator Lincoln commends hospitals for improving the health of Arkansas communities while safely lowering costs

(Batesville, Ark.) February 20, 2008 – U.S. Senator Blanche Lincoln (D-Ark.) yesterday joined senior executives from non-profit hospitals across Arkansas to recognize their work improving the health of their communities. The hospitals and health systems work with the Premier healthcare alliance to improve the quality of care for Arkansas residents while safely lowering healthcare costs.

Through this alliance, 19 non-profit Arkansas hospitals have been able to generate nearly $2.6 million in savings in 2007, and more than $11.4 million since 2000; savings that are reinvested to improve the health of Arkansas communities.

“Providing the citizens of Arkansas with access to quality and affordable care is essential to the health of our families and the health and productivity of our communities,” said Senator Lincoln. “I commend these Arkansas hospitals for their efforts to achieve the highest quality of care while also saving costs.”

Validated savings are what hospitals save in real dollars as a result of their collaboration through the Premier alliance. Nationwide, the Premier alliance has generated more than $2.2 billion in validated savings to member hospitals, which are certified by the CEOs of those hospitals, over the last three years.

“Our work with the Premier healthcare alliance has made a positive impact on the efficiency and effectiveness of healthcare delivery to all of our patients,” said Gary Bebow, FACHE, White River Health System administrator/CEO.

In addition, three Arkansas hospitals have significantly improved the quality of care they offer their patients through the Premier, Centers for Medicare and Medicaid Services (CMS) Hospital Quality Incentive Demonstration (HQID) pay-for-performance project. The first national project of its kind with 250 participating hospitals, the HQID project is designed to determine if economic incentives to hospitals are effective at improving the quality of inpatient care.

“Many Arkansas non-profit hospitals have gained nationwide knowledge with assistance from the Premier healthcare alliance, and tools to achieve savings and improve patient care in their local communities,” said Premier President and CEO Richard A. Norling.

Arkansas participants achieved some of the greatest quality improvements from Year 1 to Year 4 (preliminary results) of the project. Highlights include:

A 46 percent increase in heart failure quality of care and a 22 percent increase in pneumonia quality of care at the Jefferson Regional Medical Center;
A 38 percent increase in heart failure quality of care and a 24 percent increase in pneumonia quality of care at White River Medical Center;
A 37 percent increase in heart failure quality of care and a 23 percent increase in pneumonia quality of care at Stone County Medical Center.

Premier helps unite 19 non-profit hospitals in Arkansas to share best practices, benchmark against leading hospitals nationwide and benefit from economies of scale in purchasing supplies and services. Premier’s committee of hospital experts also helps Arkansas non-profit hospitals acquire the latest technology faster, bringing life-saving healthcare innovations to patients across the state long before they otherwise would have arrived.

“These top performing hospitals have collaborated to share information about patient care and best practices, allowing them to further improve quality while safely reducing costs,” said Premier Chief Operating Officer Susan DeVore. “Through his collaboration, these facilities are able to deliver efficient, effective and caring hospital experiences for Arkansas residents.”

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.