- Edward-Elmhurst Health
- Cardiac rhythm management utilization (CRM) flat, but spend up
- Outsourced analytics to Premier’s High-Value Implant Advisory Services
- $506K savings over six months post contract implementation
Cost reduction efforts at Illinois-based Edward-Elmhurst Health became critical when leaders found they needed to address the spiraling costs of Physician Preference Items (PPI) spending. Cardiac rhythm management (CRM) devices were a prime target for these efforts – utilization remained steady but spend continued to rise, accounting for nearly $12 million in expenses. Looking to efficiently and effectively standardize CRM device use, leaders sought to quickly examine three primary vendors in terms of the value and quality of their products.
In order to implement and realize savings, they needed help. Based on previous work targeting spine hardware, leadership tapped Premier’s High-Value Implant Advisory Services to implement cost reduction initiatives and gain access to their specialized database, expertise and ongoing advisory services, which produce savings on PPI. By collaborating with the Edward-Elmhurst Health team, Premier experts applied their advisory services for high-value implants and created a customized, actionable pricing strategy that identified an incredible $752K in savings. In addition, Premier worked with key stakeholders, including cardiology and finance leadership, to provide education around the importance of improved pricing vs. vendor changes. After getting everyone on the same page, Premier presented a matrix of price targets for the suppliers to meet and further negotiated additional discounts and terms—all within two weeks.
After just six months of using Premier’s High-Value Implant Advisory Services, Edward-Elmhurst Health leadership had exceeded their annual savings target of more than $500K, and are on track to save $1M annually. In addition, the health system streamlined the decision process through the use of robust data analytics, expedited negotiation and quick implementation of these high-value implants, all without making any supplier changes.