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

IBM Security: Healthcare Cyber Attacks Prevalent, but Less Records Breached in ’16

A new report from IBM Security found that healthcare—not too long ago the most attacked industry by cyber criminals—fell out of the top five of most breached industries.

FBI Notification: Cyber Criminals Targeting FTP Servers to Compromise PHI

The Federal Bureau of Investigation issued a warning that cyber criminals are actively targeting File Transfer Protocol (FTP) servers operating in “anonymous” mode and associated with medical and dental facilities to access protected health information (PHI).

Texas HIE Approved as CMS Qualified Registry

Healthcare Access San Antonio (HASA), a health information exchange (HIE) organization in San Antonio and surrounding Texas counties, has received clearance from the Centers for Medicare & Medicaid Services (CMS) to become a qualified registry.

Media Report: Evolent Health Exploring Merger with Advisory Board

Evolent Health, an Arlington, Va.-based healthcare technology provider, is exploring a potential combination with The Advisory Board, a Washington, D.C.-based healthcare consulting firm, according to a report from Reuters published on Friday.

Urology Austin Falls Victim to Ransomware Attack, Alerts 200K Patients

The Texas-based Urology Austin has acknowledged that it fell victim to a ransomware attack in January, and has since notified some 200,000 patients that their information might have been breached.

University of Maryland Medical System Earns HIMSS Stage 6 Recognition

The University of Maryland Medical System (UMMS), based in Baltimore, has achieved Stage 6 on HIMSS Analytics’ Electronic Medical Record Adoption Model (EMRAM) for the ambulatory environment.