November 18, 2010 12:20 ET

Decatur Memorial Hospital Selects VHA Price Benchmarking Service to Drive Cost Savings of More Than $1 Million in Next Year

IRVING, TX--(Marketwire - November 18, 2010) - Decatur Memorial Hospital, Decatur, Ill., has selected VHA Inc.'s industry-leading price benchmarking service, VHA PriceLYNX™, to support the organization's plans to cut its supply expenses by more than $1 million over the next 12 to 18 months.

By leveraging VHA PriceLYNX benchmarking data, DMH expects to improve its ability to negotiate with vendors, enhance purchasing coordination across the system, engage physicians in cost-reduction efforts and introduce new technologies. As part of the VHA PriceLYNX service, DMH will receive ongoing analysis of its supply spending and access to a supply chain advisor who will work with the materials management team at the 341-bed hospital to identify and prioritize savings opportunities.

"We are constantly looking for ways to reduce our costs and we believe other third-party supply chain data providers don't offer as current or comprehensive data on pricing as VHA PriceLYNX," said Jerry Komnick, director of materials management at DMH. "The new service will elevate our ability to work aggressively on cost reductions, knowing that we've got the full picture of what's happening across the organization and data that is tailored to our needs."

"We set annual cost reduction targets in the supply chain arena of more than $1.5 million, and we believe VHA PriceLYNX will help us even exceed that," said Tim Stone, executive vice president and chief operating officer at DMH.

"With VHA PriceLYNX we can compare our performance against more than 1,100 other acute care facilities to make sure that we're receiving the best pricing for the supplies that we need," said Deb Welch, contract manager at DMH. "It provides a starting point for negotiations and allows us to identify opportunities to meet our savings objectives each year and help prioritize high-spend items."

Komnick indicated that the organization will incorporate VHA PriceLYNX into its Clinical Quality Value Analysis, or CQVA, processes that examine high-cost medical usage to figure out what the price should be and where the organization should focus its efforts.

"VHA PriceLYNX is enabling our member hospitals to identify annual savings opportunities equaling nearly $4 million per facility," said Justin Hibbs, senior director of analytics strategy and marketing for VHA. "These savings are needed now more than ever as hospitals cope with the increasing cost pressures and demands resulting from health care reform."

VHA PriceLYNX is just one component of VHA SupplyLYNX™, VHA's robust suite of analytical solutions, that help hospitals cut costs and improve supply chain management. This powerful array of products and services also includes: VHA DataLYNX™, VHA Physician PreferenceLYNX™, a contract catalog, plus supplemental services, such as spend analysis, services analysis and pharmacy analysis that further improve members' cost saving opportunities.

About DMH -- Decatur Memorial Hospital is a not-for-profit hospital that has been providing medical care since 1916, for the residents of Central Illinois. DMH encompasses twelve state-of-the-art Centers of Excellence which focus on the cutting edge of medicine today and provides the community with award-winning quality health care. By combining a highly trained staff of professionals with the latest advancements in technology, DMH furthers its mission of improving the health of the people of Central Illinois. For more information on DMH, go to

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. In 2009, VHA delivered record savings and value of $1.47 billion to members. Formed in 1977, VHA serves more than 1,400 hospitals and more than 28,000+ non-acute care providers nationwide, coordinating delivery of its programs and services through its 16 regional offices. VHA has been listed as one of the best places to work in health care by Modern Healthcare since 2008 and one of the best places to work in IT by Computer World since 2007.

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