Skip to content Skip to navigation

Premier: Members Saved $4.2 Billion

April 30, 2012
by Gabriel Perna
| Reprints

Members of the Premier healthcare alliance recorded savings of more than $1.45 billion last year by collaborating to improve performance, integrating and comparing data, and using innovative purchasing practices, on top of an additional $2.75 billion in savings from lowering product pricing for hospitals. The total savings for Premier members was $4.2 billion, to which the for-profit collaborative of hospitals and non-acute care clinics, accounts to its various performance improvement strategies.

Those strategies included the QUESTHigh Performing Hospitals collaborative, Partnership for Care Transformation (PACT), and various regional and national purchasing collaborative efforts. Based on research by Lawton R. Burns, Ph.D., on hospital purchasing alliances, Premier says it helped hospitals reduce costs by 14 percent of its purchasing volume last year. The alliance also returned a record $295 million in cash distributions to its owner hospitals and health systems.

“The Commonwealth Fund has suggested that by sharing best practices, the U.S. could reap substantial benefits to overall health, patient experiences and cost savings,” stated Rich Statuto, president and CEO of Bon Secours Health System Inc., who received the Premier Excellence Award in 2011. “That’s what the Premier alliance does. We benefit from our membership every day, as we focus on delivering high-quality care across the continuum and improving the health of our population.”

Some of the members that Premier has noted for their work in savings were:

  • Banner Health, a nonprofit health system serving seven Western states, saved $41.5 million by standardizing clinical and supply chain processes to improve care and reduce costs.
  • University Hospitals, a leading health system serving Northeast Ohio, saved $18 million while providing high-quality, patient-centered medical care.
  • Crittenton Hospital Medical Center, a 290-bed hospital, saved $4 million, reduced overtime and increased patient satisfaction.

Get the latest information on Finance and Revenues and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

CMS Looks to Increase Patient Engagement with New Models

The Centers for Medicare & and Medicaid Services (CMS) has announced two new models from the CMS Innovation Center (CMMI) that will aim to increase patient engagement in care decisions by putting more information in the hands of Medicare beneficiaries.

Medtronic, Fitbit Integrating Health and Activity Data for Diabetes Management

Fitness wearables company Fitbit, based in San Francisco, and Dublin, Ireland-based Medtronic, a medical device company, have teamed up to integrate health and activity tracking for patients living with diabetes and their physicians and care teams.

UC San Diego Health Offering EHR, iPad Access to Patients

Patients at the recently-opened Jacobs Medical Center at UC San Diego Health can be in more command with their own experience by assessing their own medical information, controlling room features and more.

Texas Medical Center, Australia Form BioBridge to Develop Health Innovation

Houston-based Texas Medical Center (TMC) and the Melbourne-based Health Informatics Society of Australia (HISA) are collaborating on a health startup exchange program.

Teladoc Hits 101K Patient Visits in November

Telehealth vendor Teladoc announced this week that it totaled 101,600 e-health patient visits in November, setting a company record.

Research of mHealth Apps Reveals Significant Gaps in Quality

An evaluation of 137 patient-facing mobile health apps revealed that few apps address the needs of the patients who could benefit the most, according to research in December’s issue of Health Affairs.