Southern hospitals form supply purchasing network
Five healthcare systems in the Central Atlantic region have united to form the Central Atlantic Health Network, a supply purchasing collaborative.
The hospitals are all members of VHA’s SupplyNetwork and represent a combined annual supply and services spend of more than $800 million.
Members of the Central Atlantic Health Network are:
- CarolinaEast Health System, New Bern, N.C.
- Centra Health Inc., Lynchburg, Va.
- Covenant Health, Knoxville, Tenn.
- Mary Washington Healthcare, Fredericksburg, Va.
- University Health Systems of Eastern Carolina, Greenville, N.C.
According to David B. McDonald, area senior vice president of VHA Central Atlantic, the new network anticipates committing to 30 agreements yielding a savings of about $12 million during its first operational year.
“The new healthcare reform law has heightened the immediate need to create this organization because it has placed an additional emphasis on cost reduction,” said McDonald.
The network will be led by supply executives from the participating member healthcare systems. McDonald said the committee would develop strategies, guidelines and processes to ensure the group can reach its savings objectives. However, members will retain the ability to make independent decisions about product purchases and to aggressively pursue product standardization whenever possible.
“We’re excited to come together with other world-class hospitals in the region to form the Central Atlantic Health Network,” said Stephen Lawler, president of University Health Systems of Eastern Carolina. “Each of our organizations has been recognized repeatedly for its clinical and operational efficiency and professional excellence, and we look forward to collaborating with each other to identify additional opportunities to drive efficiencies and achieve great savings.”
