by David Domingue, SVP Business Development, CHC.
It’s an ongoing challenge for hospitals and health systems — providing quality patient care in the midst of declining reimbursements and increasing patient volumes. This predicament is particularly acute for community hospitals as they strive to maintain their financial health.
For larger providers, participating in a group purchasing organization (GPO) to help manage supply costs has been a way to hold the line on expenses. GPOs offer preferred pricing based on volume. Yet smaller community hospitals, often hit the hardest by supply costs, don’t have the purchasing power to secure the pricing discounts larger hospitals can command — until now. CHC Supply Trust is a supply chain solution designed specifically for community hospitals.
About CHC Supply Trust
An extension of Community Hospital Corporation’s supply chain support services, CHC Supply Trust offers significant supply cost savings to community hospitals through a longtime partnership with HealthTrust. By granting access to HealthTrust’s portfolio of specially priced, clinician-recommended products and services, CHC Supply Trust hospitals obtain deep discounts — savings similar to those of larger hospitals. And smaller hospitals benefit from meaningful savings even when purchasing many of the same items they secured prior to working with CHC. This offering helps community hospitals improve their bottom line with a reduction in supply costs estimated at about 10 percent savings annually — substantial savings for smaller hospitals. Program participants also benefit from additional support services.
CHC Supply Trust provides four levels of support to help hospitals reduce costs while prioritizing clinical quality and patient safety:
- GPO Access Only
- Supply Chain Consulting
- Customized Support Services Agreement
- Outsourced Materials Management
The bottom line: CHC Supply Trust hospitals are able to free up more money to dedicate to patient care or other needs. Preferred supply pricing typically reserved for large hospital systems is now available to community hospitals nationwide. Regardless of size, CHC Supply Trust hospital clients gain access to a higher tier of savings.
CHC has a history of helping community hospitals achieve cost savings through supply chain support services. Working with CHC, Community Hospital in McCook, Nebraska has achieved yearly savings averaging 18 percent on its supply spend since 2013. Another client, Bert Fish Medical Center in New Smyrna Beach, Florida, has recognized nearly $1.5 million in supply chain savings across several categories since 2011.