Ascension Health Alliance announces formation of GPO
Resource and Supply Management Group, LLC (RSMG), a subsidiary of Ascension Health Alliance, today announced that it has formed a Group Purchasing Organization (GPO), after receiving a favorable opinion by the Office of the Inspector General.
A GPO represents a number of organizations, acting as the contracting agent for all its participants, leveraging the combined volume of purchases to secure lower prices and better total value in areas ranging from supplies and professional services to utilities. Participants in the new GPO will include the Health Ministries of Ascension Health, the nation's largest Catholic and nonprofit health system. Ascension Health is the healthcare delivery subsidiary of Ascension Health Alliance. The GPO will share the Mission, Vision and Values of Ascension Health. RSMG will also make its services available to other healthcare entities, hospitals and health systems.
"Ingenuity and truly innovative thinking are necessary to stay viable within healthcare today," said Anthony R. Tersigni, EdD, FACHE, President and CEO, Ascension Health Alliance. "The creation of this uniquely positioned GPO is another demonstration of how our organization strives to solve real problems and make a difference by ensuring our ability to provide high- quality care at a low cost for the communities we serve."
As a wholly-owned GPO, believed to be the first of its kind in the healthcare field, RSMG will both negotiate and manage contracts for GPO participants. As the supply management arm of Ascension Health, RSMG will go beyond the traditional GPO process of negotiating and will also insure that implementation and realization of savings occurs. RSMG's unique method of interwoven collaboration with its Health Ministry participants provides clarity to the needs of the end-user and allows RSMG to leverage the significant volume of Ascension Health to influence cost savings while also supporting clinically excellent care. As other entities join the GPO, RSMG's ability to deliver savings, as an aggregator and a consumer, will be further enhanced.
"As participants of the GPO, the ministries of Ascension Health will see immediate benefits such as lower costs on purchased services, capital and professional services," said Robert J. Henkel, President and CEO, Ascension Health. "Longer term, the GPO demonstrates our commitment to transform healthcare by 2020."
"We are looking at the broader healthcare landscape in order to lower the overall cost of healthcare," said Scott Caldwell, Senior Vice President and Chief Supply Chain Officer, "A holistic approach to the cost of healthcare will impact the cost equation for the supplier, as well as the healthcare institution. We are here to serve our patients and those who deliver care. To do so, we must reset the cost bar and not simply inch it down over time."
For more information contact: Sheila Biggs 314.733.8202 sheila.biggs@ascensionhealth.org.
Caldwell said his team has already has begun to contact potential GPO participants while work is under way to finalize the details of the new GPO's operations.
About Ascension Health Alliance
Ascension Health Alliance is a Catholic healthcare organization dedicated to the transformation of healthcare through innovation. Its subsidiaries include Ascension Health, the nation's largest Catholic and non-profit health system. Ascension Health provides the highest quality care to all with special attention to those who are poor and vulnerable. Last year Ascension Health provided more than $1.2 billion in care of persons living in poverty and community benefit programs. Its Mission-focused Health Ministries employ more than 121,000 associates serving in more than 1,400 locations in 21 states and the District of Columbia. Other Ascension Health Alliance subsidiaries focus on service areas including physician services, global mission support, treasury management, innovation acceleration, venture capital investing, and medical engineering. Its Ascension Health Care Network subsidiary is a joint venture with Oak Hill Capital Partners that provides an alternative funding source for the acquisition of Catholic hospitals and other healthcare provider entities.
