Challenge

Coffeyville Regional Medical Center, a nonprofit hospital in southeast Kansas licensed for 47 beds, has net patient revenue of $36 million and a total spend of $3.7 million on medical and surgical supply. Once an Ovation Healthcare client, Coffeyville decided to move their business to another group purchasing organization (GPO). The hospital quickly discovered their supply expenses were increasing.

Ovation Healthcare Solutions

Coffeyville turned to Elevate Supply and Expense Management Solutions, one of Ovation Healthcare’s shared services, to strengthen independent community hospital performance with more than $1.1 billion in purchasing power, to assess whether a switch would lower expenses. As a part of the due diligence process, PLUS™ conducted a pricing analysis on more than 5,000 items.

Results

The pricing analysis Elevate performed for Coffeyville revealed the hospital could save nearly nine percent. As shown in the savings demonstration for the custom selection of product, some of spend illustrated savings of more than 20 percent. Within 10 months of converting to a competitor, Coffeyville returned to Elevate.

Client Quote

“As the CEO, I have ultimate responsibility for managing expenses, and in doing so, for securing supplies at the most competitive price. For Coffeyville Regional Medical Center, that’s Elevate with an average savings of nine percent.”

Brian Lawrence
CEO
Coffeyville Regional Medical Center