SOURCE: VHA

April 07, 2010 11:31 ET

VHA PriceLYNX™ Subscribers Boast Supply Savings of $1 Million per Quarter

Hospitals Getting Better Pricing, Time After Time, Item After Item

IRVING, TX--(Marketwire - April 7, 2010) -  Every health care reform scenario will require hospitals to maximize their efficiencies and establish enduring strategies that buoy their bottom lines. VHA Inc., the national health care network, has demonstrated its success at helping hospitals implement strategies that rapidly improve margins by taking costs out of their supply chain. 

One service that has quickly been recognized as providing almost an immediate return on investment is VHA PriceLYNX, which extracts information from the most robust supply benchmarking database in health care to help hospitals identify and understand industry pricing on supplies. In fact, subscribers on average achieve $4 million in annual savings.

VHA PriceLYNX reflects data from approximately 800 multi-sized hospitals nationwide, a significantly higher number than other health care benchmarking offering. Straightforward and easy to navigate, VHA PriceLYNX provides subscribers with accurate and timely price benchmarks on over 4.6 million hospital products. This data is refreshed weekly and more than 50,000 new items are added every month. 

Since becoming available in May 2009, VHA PriceLYNX has helped hospitals regain control of their supply chain, using the price benchmarks to negotiate with vendors, improve overall system performance and even boost employee morale. 

"VHA PriceLYNX eclipses the competition because our database derives its information from a pool of $50 billion in non-salary spend," said Guillermo Ramas, vice president, Strategy and Product Development, at VHA's Information and Data Services unit. "And unlike most systems, we can install VHA PriceLYNX almost immediately." 

Additionally, VHA PriceLYNX identifies weekly cost-saving opportunities by producing a constant stream of data that allows subscribers to get updated views of the items they are buying every week. And soon, subscribers will be able to track their purchasing performance over time.

VHA PriceLYNX subscribers are impressed. "Before VHA PriceLYNX, we wanted to move price containment down, but you never knew where the floor was," said David Lenart, director, Facilities and Materials Management at Columbus Regional Hospital in Columbus, Indiana. "Now we have a real understanding of the opportunity not just within a product line, but throughout utilization. We can identify more targets and be aggressive at driving costs out of the system, either through a certain product, a segment or a full product line."

VHA PriceLYNX is just one component of VHA SupplyLYNX™, VHA's robust analytical solution that helps hospitals cut costs and improve supply chain management. This powerful suite of products and services includes VHA DataLYNX™, VHA Physician PreferenceLYNX™, Spend Analysis, Services Analysis, Pharmacy Analysis and the Contract Catalog, plus supplemental services that further improve members' cost saving opportunities.

About VHA
VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance and identify and implement best practices to improve operational efficiency and clinical outcomes. Formed in 1977, through its 16 regional offices, VHA serves more than 1,400 hospitals and more than 28,000 non-acute care providers nationwide. VHA was ranked by Modern Healthcare as the 7th best place to work in health care in 2009.

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