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Alven Weil
Premier Inc.
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Oregon non-profit hospitals announce $32 million savings in 2007, $123 million since 2000 through Premier healthcare alliance

Senator Wyden commends hospitals for improving the health of Oregon communities while safely lowering costs

Eugene, Ore. (March 18, 2008) – U.S. Senator Ron Wyden (D-Ore.) today joined senior executives from non-profit hospitals across Oregon to recognize their efforts to improve the health of their communities. The hospitals and health systems work with the Premier healthcare alliance to improve the quality of care for Oregon residents while safely lowering healthcare costs.

Through this alliance, 11 non-profit Oregon hospitals* have been able to generate nearly $32 million in savings in 2007, and more than $123 million since 2000, savings that are reinvested to improve the health of Oregon’s communities.

“Oregon hospitals are proving every day that they deserve to be ranked among the top healthcare providers in the nation,” said Senator Wyden (D-OR). “In this environment of rising healthcare costs, they are demonstrating that it is possible to control costs without sacrificing quality of care.”

The value realized is in real dollars, delivered to these hospitals’ bottom lines, 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.

"Membership in the Premier healthcare alliance has helped us control our costs so we can devote our resources to providing the best patient care possible,” said Mel Pyne, chief executive officer at Sacred Heart Medical Center. “In doing so, we’ve enhanced our ability to best serve the community.”

Premier helps unite 11 non-profit hospitals in Oregon to share best practices, benchmark against leading hospitals nationwide and benefit from economies of scale in purchasing supplies and services. Oregon’s Premier alliance hospital members acquire the latest technology faster, bringing life-saving healthcare innovations to patients across the state.

In addition to significant cost savings, the Premier alliance has partnered with hospitals to make dramatic improvements in quality of care for Oregon patients. During the last four years, Adventist Medical Center has improved the quality of care through the Centers for Medicare & Medicaid Services, Premier Hospital Quality Incentive Demonstration project. Adventist quality improvements from Year 1 to Year 4 (preliminary results) include:

17.34 percent improvement in consistent pneumonia care;
11.35 percent improvement in consistent heart failure care;
10.14 percent improvement in consistent hip and knee replacement care; and
1.83 percent improvement in consistent heart attack care.

The Composite Quality Scores above were calculated using a combination of clinical quality measures and outcome measures.

“Hospitals within the Premier healthcare alliance share best practices to unite a fragmented healthcare system, while improving quality, reducing costs and saving lives,” said Premier Chief Operating Officer Susan DeVore. “We are pleased that hospitals in Oregon can reinvest this money to improve the health of their community.”

*Note: Nine Premier alliance members in Oregon are affiliated with California-based Adventist Health and Washington-based PeaceHealth. This aggregation of volume allows Oregon hospitals unparalleled purchasing power and pricing.

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.