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Premier Inc. Announces Inaugural Members In SURPASS

The highly committed purchasing program leverages comparative effectiveness, reduces variation and drives savings for healthcare providers through aggregated purchasing of top quality products and services.

CHARLOTTE, N.C. (June 25, 2018) — Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, has announced 11 health systems to serve as core members of its SURPASSTM highly committed purchasing program (Synergizing for Unparalleled Results in Procurement and Strategic Sourcing).

SURPASS is a unique collaboration for Premier® member health systems, designed to drive compliance and scale for the purchasing of clinically efficacious products across their systems in order to achieve best-in-market pricing. The 11 core health system members represent $8.4 billion in annual supply chain purchasing, with more than 30,000 acute care beds across 24 states and two U.S. territories.

“To achieve the next level of cost transformation within the supply chain, hospitals and health systems are leaving no stone unturned,” said David A. Hargraves, Senior Vice President of Supply Chain at Premier. “Coupled with a focus on standardization and costs, what differentiates this program from others is that we are approaching discussions with suppliers with a very specific and detailed focus on clinical effectiveness – ensuring the foundation of all purchasing will be centered on supplies and products that demonstrate a difference in boosting outcomes and delivering value.”

The SURPASS model seeks suppliers that compete to offer the absolute best price possible, linking them with participating members that commit to scaling purchasing to these high-value, high-commitment contracts. This member-led group will help to drive evidence-based supply chain decision-making, including being active participants in negotiations, clinically vetting the products and supplies, and determining which suppliers are awarded contracts.

“We’re excited to be included in this core group of health systems that are actively pursuing smarter healthcare supply chain strategies, helping us secure optimal pricing on products that  deliver the most value in terms of improved patient outcomes,” said Shaun Clinton, CMRP, Senior Vice President of Supply Chain Management at Texas Health Resources. “Extending our intelligent product decisions into a new, highly committed program – based not just on acquisition cost, but also on total cost of care – help us redeploy funds to invest in the care and the talent we need to meet consumer demands.”

The program complements Premier’s existing ASCEND performance group by offering even greater savings at a correspondingly higher level of commitment. ASCEND, one of the nation’s largest committed programs with more than 120,000 acute care beds and combined purchasing volume of nearly $18 billion, continues to deliver significant savings for participants. To drive competition, lower costs and help prevent shortages, Premier combines compliance-based contracting, advocacy and direct sourcing programs to attract more manufacturers – fostering healthier markets with lower barriers to entry.

Forward-looking statements

Matters discussed in this release that are not statements of historical or current facts, such as expected as purchasing volumes, as well savings and other expected benefits to members and suppliers, as discussed herein, are “forward-looking statements” within the meaning +of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the “Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC and available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

About Premier, Inc.

Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of approximately 3,900 U.S. hospitals and health systems and approximately 150,000 other providers and organizations. With integrated data and analytics, collaboratives, supply chain solutions, and advisory and other services, Premier enables better care and outcomes at a lower cost. Premier, a Malcolm Baldrige National Quality Award recipient, plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.

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