Ohio Health Systems Join Forces to Lower Purchasing Costs
April 17—A group of four Northeast Ohio-based health systems have formed a purchasing collaborative to lower purchasing costs and enhance care delivery. Benefitting from scale and innovation, the collaborative has reduced cost of supplies, including physician preference items (PPIs). Members of the collaborative—called the Purchasing Organization of the Western Reserve (POWR)—include University Hospitals, Cleveland; EMH Healthcare in Elyria and Amherst; Parma Community General Hospital, Parma; and Southwest General, Middleburg Heights.
Together, the four health systems have saved $700,000 in approximately four months, including $250,000 on PPIs. The group also realized savings in lab and medical/surgical products and pharmacy contracting and is now working on better managing the cost of orthopedic implants and cardiology devices.
Publication Date: Wednesday, April 17, 2013