The new partners look to improve financial and operating outcomes with an alternative supply chain source for independent providers in North America, Asia, Oceania, and Europe.
Ascension and Australia's Ramsay Health Care Ltd. are forming a global supply chain joint venture.
The deal will combine the purchasing power of St. Louis-based Ascension, the world's largest Catholic health system, and Sydney-based Ramsay, which operates more than 230 healthcare facilities in six countries on four continents, the two organizations said in a joint statement.
"Ascension is continually exploring potential opportunities to extend our reach internationally and make healthcare more affordable for those we serve," said Ascension President and CEO Anthony R. Tersigni.
"As we looked for partners to help us improve the quality and reduce the costs of the millions of items our caregivers use to provide compassionate, personalized care, we were tremendously impressed by Ramsay Health Care, whose values and mission align closely with our own," he said.
The venture will be owned equally by Ascension and Ramsay. Ascension subsidiaries Ascension Holdings International and The Resource Group, Ascension’s group purchasing organization, will work with Ramsay's International Procurement Office to develop and operationalize the new global healthcare buying group.
Ramsay Group Managing Director and CEO Craig McNally said the JV "will seek products internationally that are able to deliver the high level of service and clinical outcomes that our patients have come to expect."
"Globally, funders are looking for better outcomes at a reduced cost and it is important that all players in the healthcare system work to meet these expectations," McNally said. "At the same time, technology is advancing rapidly and we owe it to our patients to stay abreast of new developments."
John D. Doyle, president and CEO of Ascension Holdings International, said the JV "will create opportunities to both improve financial and operating performance within our respective organizations, as well as providing an alternative supply chain source for independent providers in North America, Asia, Oceania, and Europe."
"The new venture is designed by providers, for providers, with the belief that we can bring greater efficiency, discipline, and innovation to the system, and form more productive relationships with the vendor community," Doyle said.
John Commins is the news editor for HealthLeaders.