Planning and sourcing solution helps save $1 million Last Updated: May 1, 2015
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CHALLENGE

Handling planning and sourcing for a major construction project can be a tough task for materials management departments. It takes a special effort for an independent hospital. That was the challenge Kenyetta C. Keys, director of materials management, at Doctors Community Hospital in Lanham, MD, faced in early 2014. The hospital was beginning a $14 million operating room expansion and renovation.

Jim Venker, senior director, Construction and Facilities Programs at Premier, Inc. (NASDAQ:PINC) attended the first meeting to discuss the project. According to Keys, she nudged Jim and said, “I’ve been a part of a major construction project before I came to Doctors Community Hospital. We’re going to need assistance. I think we’re going to need an equipment planning company or a consultant. Jim responded that he already had one.”

SOLUTION

That became her introduction to Premier’s MEMdata planning and sourcing solution. “I contacted them that evening and signed a contract a few days later,” she said. “It was just that simple. After I talked with them about their solution and how we would work through their website, it was a no-brainer.” The chief operating officer agreed. “MEMdata jumped in and started right to work,” Keys said.

The MEMdata and the hospital teams worked hand-in-hand planning and sourcing the equipment. “They helped our OR team review and approve recommendations,” Keys said. “When we needed to look at equipment, they called up pictures and specs from their website. They were very engaged and available to us at any time. MEMdata did the heavy lifting! The process was seamless.” MEMdata also understood the hospital wanted to purchase as much equipment from Premier contracts as possible.

Paula Kiernan, purchasing manager, worked most directly with MEMdata. She is particularly impressed with the ease of using MEMdata’s project website. “I can find quotes any time I need them. I can pull up the site when needed. The process is real-time. I place an order today. As soon as I place it, I send MEMdata a purchase order, and it’s there on the website. I can see where everything stands at any time.”

RESULT

  • The original cost estimate was $14 million. That was first lowered to $13 million then to $11 million.
  • Savings have reached nearly $1 million.
  • In addition, 94 percent of capital equipment was purchased from Premier contracted suppliers so there are related administrative fees.
  • The hospital is now using a MEMdata planning and sourcing solution for all its capital purchases.