Custom Surgical Packs

Frederick J. Tavani, Jr. – Director

The Cooperative• Strategic contracting cooperative owned by

Meridian Health and Raritan Bay Medical Center

• 6 hospitals: 1 University Medical Center, 5 community hospitals (2,424 Lic. Beds)

• $80M in Annual Supply Chain Contract Volume

• Standardizing data from disparate information systems

• Normalizing and cross-referencing components across dozens of manufacturers

• Lack of one standard spend analytics tool

• Limited analytical staff resources

• Limited dollars to engage additional analytical resources

The Pain PointsContracting and Analytics

• Limited clinical resources for lengthy product trials

• Frustration created by lengthy product trials

• Conversion from incumbents is labor intensive

The Pain PointsClinical

• 3 different incumbent suppliers: Cardinal, DeRoyal and Avid Medical

• 6 Hospitals

• 141 Custom Packs

• 4,500+ Components

• Annual Spend: $3.7 million

Problem: How To Cost Effectively Oversee A Complex Bid?

Question: How do consolidate to 1 supplier to aggregate spend? Answer: Clinical Involvement!

Question: How do we achieve a Level Playing Field with suppliers?Answer: MedPricer!

Question: How do we achieve Transparency in pricing?Answer: MedPricer!

Question: How do we reduce the bid analysis turn-around time? Answer: MedPricer!

The Solution

MedPricer.com E-Sourcing Designed for Healthcare

• Conduct sealed-bid electronic RFP’s (eRFP’s) • Suppliers compete in real-time for contract awards• Streamline the Bid-to-Contract process • Create instant analysis of supplier pricing proposals• Generate additional savings through

intense supplier competition

• Shortened the negotiation cycle: 2 hours and 5

minutes vs. 3 to 6 weeks in the typical RFP process

• 18 bids in two hours from three suppliers

• No paper!

Time Savers

• Leveraged committed volume for deeper discounts from

supplier (13.6% savings)• Dollar savings of over $2.54M over entire life of the contract.• Supplier competition that drove better value adds

Cost Savings

• Service levels in the operating rooms by the supplier preceded the final contract signatures.

• First years expected savings will be exceeded by more than 10%.

• Conversion incentives were earned 6 months earlier than expected.

• Dollar savings of over $2.54M over entire life of the contract.

• Pricing savings were in place less than 10 days after the signing of the contract with the awarded supplier.

The Results

Other e-Sourcing Projects Completed

Wound Care Products

Skincare Products Ostomy Products Wound Closure

Products Office Supplies Specialty BedsForms Management

27% Savings vs. Benchmark