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Intalere Member Woodlawn Hospital Reduces Physician Preference Spend by 24 Percent through Intalere Clinical Advantage Program

Posted By HSCA, Wednesday, August 23, 2017

THE CHALLENGE

For more than 100 years, Woodlawn Hospital has provided quality healthcare
to the residents of Fulton County, Ind., and surrounding areas. The facility has
grown from a small house on the community’s Pontiac Street, to a 25-bed
critical access hospital and recognized leader in rural healthcare. With stateof-
the-art technology and compassionate, patient-centered care, Woodlawn
Hospital offers a wide range of services including a birthing center, cancer
center, emergency medical services, laboratory services, critical care and
medical/surgical units, radiology, rehabilitation services, respiratory care
services, sleep center, inpatient and outpatient surgical services, and more.

When a new supply chain director who had worked very closely and
successfully with Intalere in the past joined the facility, he immediately looked
to push cost reduction initiatives in areas including pharmacy, foodservice
and med surg items. One particular area of concern for Woodlawn, as with
many other facilities, was the cost of orthopedic implants. “Woodlawn Hospital
was seeing a cost increase on orthopedic implants every year while our
reimbursement stayed the same,” said James Truman, director of materials
management. “We needed to reduce our cost of implants.”

THE SOLUTION

Two years prior to engaging Intalere to assist in reducing their implant costs,
Woodlawn tried to negotiate directly with their supplier and to “piggyback”
onto another local facility’s contract. “Our supplier was able to reduce costs
by 10 percent but wouldn’t allow us to piggyback,” said Truman. “Although we
reached some savings, we felt that too much money was still on the table.”

Intalere’s local representative, Bobbie Smith, contacted Woodlawn about
Intalere Clinical Advantage®, a program to reduce high-dollar implant costs,
that he felt could help Woodlawn to maximize savings. Intalere Clinical
Advantage Program (ICAP) offers a proven strategy for reducing costs of
physician preference items and positively impacting clinical outcomes and
physician support through a customized, collaborative approach that brings
physicians, healthcare executives and materials managers together to work
toward a common goal of reducing healthcare costs, while improving patient care.  

ICAP is designed to facilitate savings by:

• Reducing costs on all physician and clinician preference items.
• Engaging and collaborating with physicians to develop key relationships
supported through evidence-based outcomes.
• Improving quality outcomes.
• Implementing a customized, collaborative process involving hospital
leadership and physician champions all working towards the same goal.

“Bobbie put us in contact with the Intalere Clinical Advantage team and,
ultimately, working with David Forquer we were able to reach our solution,”
said Truman.

THE OUTCOME

Woodlawn provided seven months of total spend on all implants. The
ICAP team reviewed the data for potential savings, with the ultimate
objective being to save 20 percent of spend while maintaining current
supplier relationships. A unique aspect of ICAP is that standardization is
not a requirement and there are no required suppliers or minimum spend
requirements per category. Organizations can customize their engagement to
meet their particular needs.

“Once the Intalere Clinical Advantage savings potential was reported to
hospital administration, we felt it was necessary to have our surgeons’
support,” said Truman. “A meeting was held that included our surgeons,
during which we shared with them our current cost compared to what other
hospitals were paying.”

The physicians were assured that the goal was to maintain the current supplier
if they would meet the facility’s requirement, but if not, the business would
be taken out to bid. “Once they saw the data, we had complete backing and
everyone was on the same page.”

The outcome was a reduction of implant cost by 24 percent. The Materials
Management department monitors the invoices with new current pricing. If a
discrepancy occurs, the invoice is held. To date, all pricing has been correct.

“Our professional services, knowledgeable staff and commitment to maintain
the highest standard of care, allow us to confidently handle the present and
future needs of patients in our community,” said Truman. “Tools like Intalere
Clinical Advantage help us ensure we can maintain the best clinical outcomes
at the lowest possible cost.”

Tags:  Cost  Intalere  Savings 

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