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Hospitals Save Big When PPI Purchases are Standardized

Rene Letourneau, for HealthLeaders Media, June 9, 2014

"By making them run the race, we got better pricing, even though we ended up staying with the same vendor."

One of the main reasons BIDMC has been successful in reducing supply chain spending through the CQVA program is because it is an organization-wide initiative that receives senior executive support, including from the CEO and CFO, Cashton says.

"We've embedded the CQVA process throughout the organization so when people are thinking about a new product or project, they want to get us involved," he says. "I've been at organizations where supply chain folks had to interject themselves, and here people come to us right from the start so it's not a battle to get involved."

Jeff Baiocco, chief financial officer at Eastern Idaho Regional Medical Center, a 312-staffed-bed institution in Idaho Falls, says that as part of healthcare giant Hospital Corporation of America, his organization has achieved substantial supply chain savings.

"Supply chain is an area where we benefit from being part of HCA because we can leverage economies of scale on pricing. There is nothing new about that," he says.

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