News

FOR IMMEDIATE RELEASE

CONTACT:
Alven Weil
Premier Inc.
704.733.5797

S.C. hospital expects year one savings of $1 million by joining Premier healthcare alliance and the WNC Health Network

Power of volume aggregation key to Oconee Medical Center's savings

CHARLOTTE, N.C. and ASHEVILLE, N.C. (April 30, 2009) – Oconee Medical Center, a 160-bed hospital in the foothills of South Carolina, is expected to realize nearly $1 million in annualized supply chain savings as a result of joining the Premier healthcare alliance and the WNC Health Network (WNCHN).

The savings are the result of simply converting to Premier contracts for supplies the Seneca, S.C. hospital was already using. The contract conversions began February 1.

"These savings could not come at a better time," said Oconee Chief Financial Officer Greg Scarbrough. "We are facing the most challenging economic times in decades and in that environment we will be opening a new 155-bed tower later this year. With that opening will come new expenses. We need every single savings we can find."

WNCHN Vice President of Member Services Tim Bugg said, "Oconee’s savings definitely show the power of aggregation. Savings are about 50/50 between Premier contracts and WNCHN's ability to get the hospital to top tiers for almost all contracts."

As Oconee began to review its supply chain options in 2008, it was drawn to the potential for savings presented by the Premier/WNCHN model. Several nearby hospitals were already enjoying access to Premier's highest contract tiers through membership in both organizations.

Oconee Director of Materials Management Jerry Nalley said, "Once we saw all the possibilities for savings, it made our decision easier, and we haven’t been disappointed. With the savings we're experiencing by simply signing new agreements on existing contracts, we are pleased with our decision and happy with the conversion process. We are definitely pleased."

Nalley cited another reason behind Oconee's choice. "Membership in WNCHN also offers us regional collaborative opportunities from a networking standpoint. Most of the hospitals around us are WNCHN members so we're able to learn from their experience. That's a great combination – saving money and learning from our peers."

The savings Oconee is experiencing are across the board. One of the largest was a six-figure savings in pharmacy. Other big hits were in radiology and the reference lab contract. Oconee was with Amerinet before joining Premier and WNCHN.

"Oconee’s savings definitely show the power of aggregation," said Bugg. "The savings are about 50/50 between Premier contracts and the WNCHN tiers on top of that."

By working together with Premier through WNCHN, member hospitals ranging in size from 20-bed critical access facilities to sophisticated urban medical centers have collectively saved nearly $46 million since 2001.

First-year savings were only $300,000, but by 2006 they had increased to $18 million. The original 16 members initially focused on shared services initiatives rather than group purchasing. Today, with the addition of hospital affiliates from throughout the Carolinas and southern Virginia, there are 48 hospitals and health systems representing 55 facilities and savings have increased by $28 million in 2008 and 2009 alone.

Oconee is also deploying Premier's SafetySurveillor™, a Web-based solution for automated infection control, surveillance and medication management. The medical center is one of 65 acute care hospitals in the Palmetto state that are part of a collaborative aimed at eliminating preventable healthcare-associated infections statewide while safely reducing associated costs. Health Sciences South Carolina, the South Carolina Hospital Association and Premier have launched South Carolina Healthcare Quality Trust, a voluntary, first-of-its-kind partnership.

Oconee's quest for savings continues. "We know there are more savings opportunities as we look to contract conversion, something we are just beginning to tackle," Scarbrough said. "We look forward to a long and fruitful relationship with Premier and WNCHN. The challenge in healthcare today is quality care delivered as efficiently and cost-effectively as possible. We are convinced our new partners will help us do that."

About Oconee Medical Center
For more than 65 years, Oconee Medical Center has served the South Carolina foothills. Services include a birthing center, wellness center, home health and Oconee Hospice of the Foothills. There are some 125 physicians representing 25 specialties and more than 1,400 employees. One of three S.C. hospitals that operate an emergency medical service, Oconee along with Anderson Area Medical Center and the Medical University of South Carolina, operate the Seneca Lakes Family Medicine Residency Program, the first S.C. program of its kind that focuses on practicing medicine in a rural area. (www.oconeemed.org)

About the WNC Health Network (WNCHN)
The WNC Health Network is a collaboration of hospitals, health departments and other providers to support cost-effective, quality health services. Its visionary community focus is supported by collaboration, integrity and respect among members. Based in Asheville, N.C., WNCHN began in 1995 to identify, explore and implement cost-effective, joint opportunities among hospitals and healthcare systems in Western N.C. It has evolved to include 48 hospitals and health systems representing 55 sites, 13 health departments and Mountain AHEC. A not-for-profit, WNCHN is an Independent Regional Network that helps members meet the challenges of a changing healthcare environment through shared healthcare services, patient quality of care and group purchasing. (www.wnchn.org)

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.