Small hospital realizes big savings: Community Hospital, McCook, Nebraska

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Community Hospital in McCook, Nebraska, previously bought its supplies and services from a nationwide hospital network. As part of the network’s supply contracting company and group purchasing organization (GPO), Community Hospital was subject to volume-based tier pricing. Under that business model, the small rural hospital paid approximately 35 percent more than larger hospitals for orthopedic implants. Higher prices were just one disadvantage of belonging to a network in which smaller hospitals typically are not shown the same attention as their larger counterparts. Community Hospital was poised for supply chain improvements. Read more in the PDF.