Physicians choose the path to supply savings

Hurley Medical Center physicians save $1.16M on clinical supplies

Hurley Medical Center, a 400-bed community hospital in Flint, MI, helped physicians lead spend decisions for $6.3M in preference item spend. Physicians chose to save $1.16M on cardiovascular and orthopedic supplies, devices, and implants.

Here’s how the physicians found the path to savings.

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Sharing price and preference data

Hurley’s first step was to share data with physicians about current cost performance. Leaders in the cardiovascular services and orthopedics/spine service lines engaged Spend Performance Solutions (SPS) to manage the physician-led savings projects.

Physicians saw price and utilization information for their current selections and SPS category experts interviewed physicians to determine their precise clinical requirements.

  • In orthopedics, physicians were surprised by premium prices assigned to some components.
  • In cardiovascular services, the SPS category experts identified and protected important physician requirements for ongoing supplier service to clinic patients with implanted devices.
“ It’s very easy to tell the hospital ‘I like this device’ but that is really very limited information. The Advisory Board asked us [dozens of questions about our patients’ clinical requirements] and all these points were taken into consideration. ”

Unlocking suppliers’ best offers

Final Results

20%

Saved on cardiovascular supplies

$775K

Savings on $3.8M cardiovascular market basket

13.5%

Saved on orthopedic, trauma, and spine supplies

$394K

Savings on $2.5M market basket

The SPS team set up a customized online bidding portal to help Hurley’s complex supplier base submit hundreds of bids with instant feedback on competitive standing. Suppliers could bid across categories within the CV and orthopedics market baskets. Suppliers could also “write in” conditional terms attached to their bids, allowing them to express their very best offers. Hurley physicians wanted suppliers to respond as strategic cost management partners, and they delivered that message to the supplier representatives supporting them.

Clinical judgment prevails

The SPS team presented a short-list of optimized award choices to Hurley’s orthopedic and cardiovascular specialists, facilitating an efficient final selection. Cardiovascular specialists quickly reviewed a series of “microshifts” —product-by-product supplier changes that rolled up to achieve compliance with a proposed 60% dual-share scenario, driving 20% savings. Orthopedic, trauma, and spine specialists also opted for very targeted product-by-product shifts, boosting savings to 13.5% from the 9% baseline savings offered if they made no shifts.

Next, Check Out

How clinical judgment guided 20% savings in CV supply spend

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