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Alven Weil
Premier Inc.
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Maryland healthcare system saves more than $5 million with Premier healthcare alliance labor management solution

Frederick Memorial Healthcare System utilizes Premier on-site performance improvement expert, Web-based labor benchmarking product to successfully implement new labor management program

CHARLOTTE, N.C. (March 11, 2010) – Frederick Memorial Healthcare System, of Frederick, Md., achieved more than $5 million in labor cost savings with the Premier healthcare alliance through the use of LaborConnect™, Premier's labor management program.

Under Frederick's previous internal productivity system, management was not convinced the organization was operating as efficiently as possible. Frederick chose LaborConnect to address its labor issues with a minimum goal of $500,000 in savings or cost avoidance.

Through Frederick's implementation of LaborConnect, combined efforts led to a validated savings of $5,181,560 in FY2009. As a part of the program, a Premier Performance Partner, an on-site performance improvement expert, provided six days per month of consulting services that helped develop, refine and better manage their labor management program. The Performance Partner return on investment alone was nearly 5-to-1.

"Investing in Premier's LaborConnect was definitely a timely decision – one that has resulted in significant savings and return on investment," said Michelle Mahan, chief financial officer of Frederick.

The Performance Partner helped install OperationsAdvisor^® (OA), Premier's Web-based labor benchmarking solution, as well as:

Trained and oriented managers and directors to new products and reports.
Monitored "watch lists" to help underperformers develop action plans.
Incorporated FY2009 labor benchmarks into the FY2010 labor budget process using OA.

Continued Mahan, "OA is an excellent benchmarking and productivity tool, but the real savings have been the result of the work of our Premier Performance Partner, who not only helped us develop and implement our labor management program, but helps us manage it effectively. She has filled the role of labor coach beautifully, helping both department and executive leaders get the most benefit in a very short time frame. I definitely recommend LaborConnect."

Ratings of staffing levels on Frederick's annual employee engagement survey improved; mean score was 3.39 on a five-point scale, nearly halfway between "somewhat" and "strongly" agree.

With more than 500 subscribing facilities, OA is the only labor management solution that fully integrates a productivity measurement system with quarterly and annual benchmarking, along with comparative data analysis. OA offers a unique combination of productivity monitoring, assessment and comparative data so that hospitals can confidently compare operational performance, identify attainable performance improvement opportunities and achieve a rapid return on investment.

Premier's LaborConnect program is a comprehensive, integrated product and service offering that combines productivity, benchmarking, management engineering and executive consulting. The program is aimed at addressing the pressing labor challenges facing hospitals and healthcare organizations today.

About Frederick Memorial Healthcare System
Frederick (MD) Memorial Hospital (FMH) is flagship of the Frederick Memorial Healthcare System; it includes 20 other facilities, physician practices, immediate care and a wellness center. Designated by Frederick Magazine as one of the top 10 family friendly employers in Frederick County, FMH offers the latest advances in diagnostic capabilities and state-of-the-art treatment as well as education in healthy lifestyle choices and disease prevention.

About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient
Premier is a performance improvement alliance of more than 2,500 U.S. hospitals and 80,000-plus other healthcare sites using the power of collaboration to lead the transformation to high quality, cost-effective care. Owned by hospitals, health systems and other providers, Premier maintains the nation's most comprehensive repository of clinical, financial and outcomes information and operates a leading healthcare purchasing network. A world leader in helping deliver measurable improvements in care, Premier has worked with the Centers for Medicare & Medicaid Services and the United Kingdom's National Health Service North West to improve hospital performance. Headquartered in Charlotte, N.C., Premier also has an office in Washington. https://premierinc.com. Stay connected with Premier on Facebook, Twitter and YouTube.