A supply chain strategy built on excellence in customer service and a partnership with UHC Supply Chain has helped UHC member University of Iowa Hospitals and Clinics initiate 35 projects that saved more than $14 million in 18 months.
"With my background in cardiology, I realized how important it is to understand the needs of end users and build relationships with them," said Frank Eischens, RN, director of procurement services. "My priority was to change the supply chain management paradigm to a customer-based approach and instill in our staff an unrelenting desire to provide excellent customer service. This approach builds trust among physicians and clinicians and helps us gain their cooperation when we present opportunities such as product standardization."
The University of Iowa Hospitals and Clinics is Iowa's only comprehensive academic medical center. It comprises a 708-bed hospital and collaboration with University of Iowa Physicians, the state's largest multispecialty medical and surgical group practice.
"The supply chain has been in the forefront of our business strategy for about 4 years, and everyone's on board," said Sabi Singh, MS, MA, the hospital's assistant vice president for operational excellence and quality/safety, as well as its associate director for clinical services. "We use UHC SpendLINK® data to benchmark our spend against other academic medical centers down to line items. And if we're not in the top 10th percentile, Frank and his team will take action."
The procurement team leveraged their strong relationships with physicians to involve them in cost-cutting efforts, primarily through price negotiations and offering vendors bigger market shares. UHC also collaborated with University of Iowa staff in using data to identify and pursue all savings opportunities in other areas such as contracting, pricing, rebates, and tier optimization. The hospital's successful projects included: