University Hospitals (UH) is a $4 billion network of 11 community hospitals, three joint-venture hospitals and more than 40 health centers in Northeast Ohio - including its flagship academic center, the 1,000-bed Cleveland Medical Center. In an effort to improve its operational performance and reduce costs, UH leveraged Premier's database of labor productivity benchmarks, clinical performance comparative data, and insights to forecast an aggressive $300 million cost reduction plan. And that's only the beginning.
Some key areas of savings have included labor benchmarking, supply chain and pharmacy cost reduction, as well as reductions in the variation of care across the system.
"We could not do any of this without Premier. I don't see another vendor in the market that can provide their integrated capabilities," says Mike Szubski, the Chief Financial Officer of University Hospitals.
$300 million in cost reduction over the past five years
Targeting $80 million in savings per year for the next five years to hit a $400 million target in cost savings