At a time when hospital operating margins are paper thin, the Premier healthcare alliance is helping its members achieve enhanced savings through its hospital group buy program. Members who utilized the program generated savings of more than $74 million in 2008.
Premier’s group buy program delivers exceptional value through coordinated, limited-time, volume driven purchasing opportunities. Savings vary – usually between 5 and 15 percent – and the program offers value-adds such as special financing rates, trade-in programs, preventative maintenance, training, service programs and extended warranties.
In 2008, Fairview Health Services and 22 affiliates saved $1.1 million on group buys totaling $8.3 million, a 13 percent savings beyond Premier’s regular contract prices. Significantly, most of those savings accrued to smaller hospitals and critical access facilities serving rural Minnesota and Wisconsin.
“We have enjoyed our long-standing relationship with Premier. They prove their value to our organization with ongoing savings. In 2008 we experienced savings of more than $70,000 on five capital budget items. In addition, we are able to save staff resources because of the tools, reports and customer service Premier offers,” said Debora A. Kunferman, CEO and administrator at Cumberland Memorial Hospital of Cumberland, Wis., a Fairview affiliate. “Our relationship with Premier is very beneficial and worthwhile."
The program also allows smaller facilities like physician’s offices, ambulatory surgery centers, and nursing homes to achieve benefits, whether in negotiating value-adds or bottom line dollars saved.