SOURCE: VHA Inc.

August 13, 2007 11:30 ET

VHA Demonstrates How It Is Expanding Use of Supply Chain Analytics in Health Care at AHRMM Conference

VHA Analytics Capabilities Help Hospitals Unlock Millions in Savings Opportunities, Improve Processes and Maximize Contract Portfolio

SAN DIEGO, CA--(Marketwire - August 13, 2007) - AHRMM Conference -- VHA Inc., the national health care alliance, introduced its Global Spend Analysis Tool last year and will be demonstrating its comprehensive analytics solution at the 45th Annual AHRMM Conference & Exhibition in San Diego this week.

More than 250 VHA member hospitals have participated in global spend analytics studies over the past two years, representing $25 billion in member spending. Nearly $450 million in potential savings has been identified for these organizations.

Crozer-Keystone Health System in Springfield, Pa., recently completed its first Global Spend Analytics study and that helped the purchasing department function more efficiently and save $140,000 in one quarter.

"VHA continues to help me understand where we stand as a health system relative to our supply chain efficiency and whether or not we're maximizing VHA/Novation contracts to our fullest advantage," says Anita Keenan, Crozer-Keystone's director of purchasing. "VHA's Global Spend Analysis solutions have helped me get my arms around what we have accomplished as a department, and where we may have additional cost savings opportunities."

Designed to address member needs, VHA's analytical tools give organizations insights that enable them to quickly focus on the most significant cost-related issues.

"Analytics plays an essential role in other industries, and it is important to the bottom line of every health care organization," says Mitch Walters, vice president of supply chain analytics at VHA. "The foundation of any cost savings initiative for hospitals should begin and end with VHA's innovative analytical capabilities."

AHRMM attendees will be able to test drive VHA analytics tools that can identify savings opportunities for capital equipment, physician preference items and medical-surgical products.

"As cost pressures continue to rise, hospitals need to continue looking for ways to accelerate their financial and clinical performance," says Scott Downing, group senior vice president for supply chain solutions at VHA. "That's why incorporating analytics into health care is so important -- it combines essential data elements, analytical expertise and the latest technologies to provide insight into a hospital's supply operations, allowing purchasing executives to use information to quickly focus on the most important issues."

VHA uses analytics as the diagnostic tool to help its hospital members understand the paths they should follow to achieve better supply chain performance. VHA then provides them with the resources and expertise to identify opportunities, establish new processes and execute on results.

The analytics reports will help members examine how they are doing relative to maximizing existing contracts, managing physician preference, improving clinical performance, linking supply information with charge data, benchmark supply performance, automate purchasing processes, accurate capital planning, strategic revenue planning and controlling pharmacy costs.

About VHA - VHA Inc., based in Irving, Texas, is a national health care alliance that provides industry-leading supply chain management services and supports and promotes the formation of regional and national networks that help not-for-profit health care organizations improve their clinical and economic performance. With 17 offices across the U.S., VHA has a track record of proven results in serving more than 1,400 hospitals and more than 21,000 other health care providers nationwide.

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