Cleveland Clinic and VHA Form New Strategic Sourcing Partnership

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Incorporates a new group purchasing model integrated with clinicians to drive quality, alignment and savings

February 4, 2013

Cleveland Clinic and VHA have entered into a joint venture that will transform the traditional group purchasing approach into a strategic sourcing model.

This new Limited Liability Company (LLC) will bring additional resources and capabilities to organizations to redesign sourcing practices, work more efficiently and help improve their overall cost structure while maintaining clinical quality.

“In today’s healthcare environment, health systems and hospitals nation-wide need to reduce their overall costs while simultaneously improving their quality,” said Steve Glass, Cleveland Clinic Chief Financial Officer. “Our shared commitment and proven experience will allow us to re-engineer how supply chain impacts organizations and positions us to work with other partners to accelerate opportunities for clinically acceptable cost relief and long-term savings.”

The LLC is built on a foundation of experience and success, both in care delivery and supply chain. It will leverage Cleveland Clinic’s strategic approach of physician integration, clinical excellence and proven clinical sourcing with VHA’s best-in-class analytics, unique ability to foster strong member networks and market-leading contracting expertise through its contracting company, Novation, to create an innovative offering for value-based sourcing.

“The Cleveland Clinic and VHA share a similar view about the future: A clinically integrated health care supply chain that ensures quality and savings at each step in the process,” said Curt Nonomaque, VHA president and CEO. “This requires new thinking and innovative approaches. Through the LLC, our organizations are working together to help shape that future and leverage our respective strengths: renowned clinical excellence, market-leading analytics and joint expertise in sourcing and supply chain. We are excited about our new partnership, which unites Cleveland Clinic and VHA and will provide us with the opportunity to evolve group purchasing as we know it today.”

Additional benefits of this new joint venture include:

  • Lower supply costs
  • Reduced operating expenses
  • Enhanced product standardization
  • Improved visibility into supply chain costs
  • Greater integration with physicians yielding physician preference opportunities.

More information about the LLC will be available in the coming months.

 

About Cleveland Clinic

Cleveland Clinic is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. Located in Cleveland, Ohio, it was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion and innovation. Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. U.S. News & World Report consistently names Cleveland Clinic as one of the nation’s best hospitals in its annual “America’s Best Hospitals” survey. About 2,800 full-time salaried physicians and researchers and 11,000 nurses represent 120 medical specialties and subspecialties. Cleveland Clinic Health System includes a main campus near downtown Cleveland, eight community hospitals and 18 Family Health Centers in Northeast Ohio, Cleveland Clinic Florida, the Lou Ruvo Center for Brain Health in Las Vegas, Cleveland Clinic Canada, and, currently under construction, Cleveland Clinic Abu Dhabi. In 2010, there were 4 million visits throughout the Cleveland Clinic health system and 167,000 hospital admissions. Patients came for treatment from every state and from more than 100 countries. Visit us at http://www.clevelandclinic.org. Follow us at http://www.twitter.com/ClevelandClinic.

 

About VHA

VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance, and identify and implement best practices to improve operational efficiency and clinical outcomes. Since 1977, VHA has leveraged its expertise in analytics, contracting, consulting and networks to help members achieve their operational, clinical and financial objectives. In 2011, VHA delivered record savings and value of $1.9 billion to members. VHA serves more than 1,350 hospitals and more than 72,000 non-acute care providers nationwide, coordinating delivery of its programs and services through its 13 regional offices. For more information, visit http://www.vha.com and follow us on Twitter (@VHAInc).

Cleveland Clinic Contacts:

Eileen Sheil, 216.444.8927, sheile@ccf.org
Heather Phillips, 216.445.4517, phillih@ccf.org

VHA Contacts:

Kyle Pyron, 972.581.5027, kpyron@vha.com
Anne Rener, 972.830.0737, arener@vha.com

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