Supply Chain Optimization for New York Health System

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Situation

With the supply and services spend exceeding $200 million annually, a 500+ bed safety net hospital system in New York State recognized the need to tackle challenging savings opportunities, such as physician preference supplies and purchased services, and implement improvements that could be sustained through a centralized supply chain organization.

Solution

Prism helped the system identify more than 125 initiatives to reduce supply and non-labor expenses. They formed six value analysis teams to implement improvements and build a cohesive, centralized non-labor support structure. The teams quickly surpassed the goal to achieve $9 million to $11.5 million in annualized savings. Initiatives included:

  • Contract Pharmacy – Developed a contract pharmacy relationship with local retail pharmacies.
  • Outsourced Managed Services – Consolidated from three vendors to one for food, environmental and facilities services.
  • Orthopedic and Spinal Implants – Worked with physicians, clinicians and supply chain resources to reduce variation and drive savings.
  • Supply Chain Restructure – Redesigned and implemented a system-wide supply chain organization structure.

Partnering with Prism, the system identified over $20 million in supply chain savings.

“Prism’s experts helped our organization implement significant non-labor savings opportunities and restructure our resources to sustain the improvements.”

System Executive Vice President & Chief Operating Officer

Connect With an Expert

Ramona (Lacy) Fowler, FACHE

Managing Partner

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Jan van Londen

Managing Director

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