Mid-Columbia Medical Center (MCMC) is a not-for-profit medical center and designated "Planetree Hospital," recognized for its emphasis on delivering holistic, patient-centered care.
Facing pressures similar to those of larger hospitals and academic medical centers, MCMC was looking to reduce its supply chain spend wherever possible.
Based upon the referral of a peer Oregon hospital, MCMC chose ECRI Insitute's PriceGuide to help negotiate best pricing on its medical-surgical supply spend, starting with OR inventory. With PriceGuide, MCMC is now able to use unbiased, evidence-based data to analyze and compare the clinical effectiveness of its existing and proposed supplies, then benchmark against the low, average, and high prices paid by peer hospitals for the same products.
In fact, using PriceGuide is now a requirement of MCMC's purchasing staff in their product research and value analysis processes. Utilization of the tool has expanded beyond the OR to encompass central supply inventory and special orders.
"PriceGuide is a very strong tool for negotiating supplier contracts and getting the best price possible, " says Michele Smith, clinical supply chain analyst. "It gives me a range of real prices paid by other hospitals of our size and in our region, so that I know what I can reasonably request and expect from vendors when it comes to our pricing."
In three years, MCMC has achieved supply chain spend reductions of more than $2 million. PriceGuide contributed to a 20% annual average savings of $153,000 on OR inventory items alone. "ECRI Institute provides an excellent array of services to help us juggle the ever-increasing demands of cost containment on both medical supplies and capital equipment," states Don Arbon, MCMC's chief financial officer.