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Loma_Linda_1sm.jpgLoma Linda University Medical Center, a major California teaching and research hospital, serves more than 33,000 inpatients and close to half a million outpatients. The medical center spends nearly $220 million annually on consumables and physician preference items.

Loma Linda’s supply chain team is aggressive in negotiating the best pricing from its suppliers. But for some products, they suspected there was room to improve and renegotiate—especially older contracts or products that didn’t come up on their radar.  


Loma Linda turned to ECRI Institute’s PriceGuide™ advisory service and started immediately cutting costs across the system. “PriceGuide really opened my eyes,” says Justin Freed, executive director of supply chain management. “We’ve used ECRI’s capital procurement and recall management services for many years, and now PriceGuide is a great addition to our toolbox.”

“Using the comparative price benchmarks in the PriceGuide database,” continues Freed, “I was able to sort by greatest opportunity for savings, whether by vendor, or specific product, immediately seeing areas of ‘low-hanging fruit’ where we could start saving money.”

Freed and his team developed a strategy to analyze all of Loma Linda’s supply pricing and get their vendors to the table. “Since then, we have achieved more than a half million dollars in savings by renegotiating more than 20 contracts on disposables, sensors, neuromodulation, breast implants, and trauma products,” says Freed.

“We access the database every day,” continues Freed, “and as pockets of identified savings pop up, based on what our peers are paying, I can see that I can save $10,000, for instance, by sending an e-mail or having a 5-minute conversation with a supplier. I call it the $10,000 phone call.”

For a recent capitated spine implant contract Loma Linda put out to bid, Freed’s team was confident in bouncing proposed pricing off of ECRI Institute analysts to verify that it was appropriate. “Knowing the prices paid in other regions of the country gives us more confidence to really toe the line with vendors,” states Freed.

PriceGuide offers powerful spending analytics and quotation analytics tools, as well as price benchmarks down to the item and SKU level for nearly 2 million unique supply items, based on real prices paid by hospitals and health systems nationwide. ECRI’s service helps thousands of organizations compare and negotiate pricing, including that of their GPOs, to the national and regional low, average, and high price paid. 


Since implementing PriceGuide, Loma Linda has renegotiated more than 20 contracts for better pricing, achieving more than half a million dollars in savings. It anticipates saving between $500K and $750K on its new capitated spine implant contract with pricing verified by PriceGuide’s benchmarks.


Learn more about PriceGuide membership.