Supply Analytics Uncovers $2.6M in Savings at Cape Fear Valley Medical Center Last Updated: January 19, 2018
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  • Cape Fear Valley Medical Center – Fayetteville, NC
  • Looked to reduce costs in purchased services
  • Tapped Premier’s Supply Analytics
  • $2.6M in savings across several target areas


Cape Fear Valley Medical Center, a community hospital with more than 800 beds based in Fayetteville, NC, sought to uncover next generation cost management opportunities beyond the low-hanging fruit. One area ripe for opportunity was purchased services– yet, a big challenge was knowing where to begin. With no line-item detail on essential services, such as security and lab courier services, the hospital had no visibility into how much they were actually spending. Due to a lack of access to local benchmarks, restricting contractual language making it difficult to opt out of long-term contracts and competing supply chain priorities within care delivery, leaders at Cape Fear found themselves in a bind when trying to zero in on savings within this significant spend area.


Unsure of what to do next, Cape Fear partnered with Premier and adopted a system-wide approach by creating a centralized contracting process. With assistance from Premier, the team developed a strong internal data tool that allowed them to see spending across all vendors and locations – creating a new transparency into purchased services spend. By tapping into Premier’s national and local benchmarks, Cape Fear implemented supplier scorecards to determine which vendors offered high value, high-quality resources, services and products. Assigning dedicated personnel to purchased services allowed the hospital to optimize contracts and service level agreements in more favorable terms for the hospital. Cape Fear was able to integrate key performance indicators into the contracts, which defined an enforceable deliverable.


These changes resulted in a new streamlined approach and collaboration across all acute and non-acute facilities and created a standardized approach to contracts for crucial operational services. Cape Fear also drove significant savings across several categories