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Princeton HealthCare System

Made up of more than 25 outpatient facilities, New Jersey-based Princeton HealthCare System (PHCS) offers a full continuum of care, including acute care hospital services, behavioral healthcare, rehabilitation, hospice care and ambulatory surgery. PHCS had experienced poor morale, lackluster performance and excessive turnover among its supply chain leadership for a number of reasons. Their legacy GPO partner was underperforming; they offered no analytics or cost benchmarking platforms, there was a lack of visibility around pricing and limited savings were realized.

PHCS ultimately decided to change course and tap Premier as its strategic partner in overhauling their approach to supply chain.

To jumpstart this performance improvement work, Premier worked with PHCS to put technology in place that would analyze current spend, benchmark operational data, evaluate contracts and measure performance. In addition to improving cost transparency, the data and analytics served as a means to connect clinical, financial and operational staff. It also encouraged collaboration between departments to adopt a system-wide integrated approach by standardizing utilization based on vendors that deliver the highest-quality, highest-value supplies, devices, services and technologies.

Since partnering with Premier, the PHCS team has implemented 238 unique initiatives across a range of areas to optimize their supply chain operations, achieving $15.7 million in annualized savings to date and overall inpatient satisfaction, including savings in:

- Medical supplies: $4.2 million
- Surgical supplies: $4.1 million
- One-time: $2.8 million

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