SOURCE: VHA Inc.

May 24, 2011 08:05 ET

Genesis HealthCare System Uses Analytical Insights to Save $1.4 Million on Physician Preference Items

Enhanced Visibility Into Pricing Helps Hospital Gain Physician Buy In, Tackle Cost Reduction Priorities

IRVING, TX--(Marketwire - May 24, 2011) - Grappling with spiraling expenses and declining reimbursements, Genesis HealthCare System, Zanesville, Ohio, has been using VHA's industry-leading analytics and benchmarking service as its primary approach to identify cost-savings and benchmark physician preference pricing against similarly-sized hospitals to enhance its bottom line. Serving patients in six southeastern Ohio counties, Genesis Healthcare System is a member of VHA Inc., the national healthcare network.

In February 2010, Genesis' purchasing department targeted orthopedic implants as a cost reduction priority. By using the data available in VHA PriceLYNX™ before, during, and after the purchasing negotiations, Genesis discovered savings opportunities of $1.4 million.

"Hospitals need insight into their performance like never before," said Justin Hibbs, senior director, analytics, strategy and marketing at VHA. "Access to a wealth of timely and accurate information allows teams to identify and agree upon cost reduction priorities quickly."

Since this cost-saving initiative focused on lowering the cost of physician preference items, it required physician agreement. After compiling and presenting savings opportunities to Genesis' doctors, "The physicians were so impressed with the data and greatly appreciated the information. They were like sponges absorbing the data we presented," says Rhonda Barnett, Genesis' contract consultant.

After completing the orthopedic implant project, the purchasing team and physicians worked together to review VHA PriceLYNX data and identify additional cost-saving opportunities on other physician preference items.

VHA PriceLYNX is just one component of VHA LYNX™, 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 that further improve members' cost saving opportunities such as spend analysis, services analysis and pharmacy analysis.

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 2010, VHA delivered record savings and value of $1.7 billion to members. Formed in 1977, VHA serves nearly 1,350 not-for-profit hospitals and more than 30,000 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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