SOURCE: VHA

February 14, 2011 15:15 ET

Scottsdale Healthcare Works With VHA Inc. to Save $13 Million

IRVING, TX--(Marketwire - February 14, 2011) - Scottsdale Healthcare in Scottsdale, Ariz. has transformed its approach to supply chain management with the help of VHA Inc., the national health care network. In 2009, Scottsdale Healthcare switched GPO affiliations and joined VHA. The result? Since August 2009, Scottsdale Healthcare implemented savings of more than $13 million and reduced supply chain costs by 7%, exceeding both its own timetable and stated savings objective.

"VHA provided us with purchasing expertise and spending data that we didn't have access to before," said Tom Sadvary, chief executive officer at Scottsdale Healthcare. "Through VHA, we've changed our supply chain practices, but also strengthened our relationships with physicians because we opened a dialogue about connecting care delivery with cost, and demonstrated that we can achieve excellence in both areas simultaneously."

Sadvary admits that financial factors were a significant driver in Scottsdale Healthcare's decision to join VHA, but the organization is reaping rewards from the many other benefits VHA provides, such as clinical improvement resources that help the organization reduce 30-day readmissions and help members shorten door-to-perfusion time in cardiology. The organization is also tapping networking opportunities that exist across the region with other VHA members. "VHA offers resources and relationships that will help us reposition so we can get ahead of the demands of health care reform," noted Sadvary.

VHA initiated and directed more than 370 distinct supply chain initiatives to achieve savings at Scottsdale Healthcare. The savings were rooted in the data VHA provided through VHA SupplyLYNX™, an analytics suite that provides current spending information on medical-surgical products, medical devices and purchased services.

VHA helped Scottsdale Healthcare implement savings in priority areas, including:

Pharmacy $3.5 million  
Spine $2.8 million  
Cardiology $2.0 million  
Perioperative surgery $1.6 million  
Medical-Surgical supplies $1.0 million  
Support Services $0.8 million  
Orthopedics $0.8 million  
Lab $0.6 million  

"VHA provided us with data that opened our eyes to the opportunities we have. We recognize now that we have to be bolder as we negotiate with suppliers and more effectively use the Novation, VHA's supply contracting company," said Vikki Noyes, vice president of operations at Scottsdale Healthcare.

To extend the success it achieved with VHA, Scottsdale Healthcare is launching new supply chain efficiency initiatives focused on improving utilization and reducing costs across its non-acute network.

About Scottsdale Healthcare

Scottsdale Healthcare is the community-based, nonprofit parent organization of the Scottsdale Healthcare Osborn Medical Center, Scottsdale Healthcare Shea Medical Center and Scottsdale Healthcare Thompson Peak Hospital, Virginia G. Piper Cancer Center at Scottsdale Healthcare, Scottsdale Healthcare Research Institute and Scottsdale Healthcare Foundation. A leader in medical innovation, talent and technology, Scottsdale Healthcare was founded in 1962 and is based in Scottsdale, Arizona. For more information, visit www.shc.org.

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 1,350 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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