Twenty-eight New England hospitals have formed a new purchasing coalition that aims to reduce costs by as much as 12 percent, according to a report by the New Hampshire Business Review.
The Northeast Purchasing Coalition represents nearly 17,000 hospital beds, 5,000 physicians and more than $2 billion in combined annual non-salary expenses.
The hospitals will leverage their existing memberships in VHA New England, which currently save them 8 percent or more on supplies, and use Novation, VHA's supply contracting provider, to further streamline expenses.
An oversight committee for the coalition, made up of supply executives from member hospitals, will develop strategies, guidelines and processes to reach cost savings objectives.
Read the New Hampshire Business Review report on purchasing.
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The Northeast Purchasing Coalition represents nearly 17,000 hospital beds, 5,000 physicians and more than $2 billion in combined annual non-salary expenses.
The hospitals will leverage their existing memberships in VHA New England, which currently save them 8 percent or more on supplies, and use Novation, VHA's supply contracting provider, to further streamline expenses.
An oversight committee for the coalition, made up of supply executives from member hospitals, will develop strategies, guidelines and processes to reach cost savings objectives.
Read the New Hampshire Business Review report on purchasing.
Related Articles on Hospital Group Purchasing:
Sen. Grassley Demands GPOs Prove They Save Money for Hospitals
GAO Releases Study on GPOs: 10 Key Points
8 Largest Group Purchasing Organizations for Hospitals