Hospitals Save More Than $74 Million Through Premier Healthcare Alliance`s Group Buy Program

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Thu Aug 27, 2009 8:00am EDT

Program Offers Opportunities to Reduce Purchasing Expense and Allow Members
Access to High-Quality Products at Lower Prices


CHARLOTTE, N.C.--(Business Wire)--
At a time when hospital operating margins are paper thin, the Premier healthcare
alliance is helping its members achieve enhanced savings through its hospital
group buy program. Members who utilized the program generated savings of more
than $74 million in 2008. 

Premier`s group buy program delivers exceptional value through coordinated,
limited-time, volume driven purchasing opportunities. Savings vary - usually
between 5 and 15 percent - and the program offers value-adds such as special
financing rates, trade-in programs, preventative maintenance, training, service
programs and extended warranties. 

In 2008, Fairview Health Services and 22 affiliates saved $1.1 million on group
buys totaling $8.3 million, a 13 percent savings beyond Premier`s regular
contract prices. Significantly, most of those savings accrued to smaller
hospitals and critical access facilities serving rural Minnesota and Wisconsin. 

"We have enjoyed our long-standing relationship with Premier. They prove their
value to our organization with ongoing savings. In 2008 we experienced savings
of more than $70,000 on five capital budget items. In addition, we are able to
save staff resources because of the tools, reports and customer service Premier
offers," said Debora A. Kunferman, CEO and administrator at Cumberland Memorial
Hospital of Cumberland, Wis., a Fairview affiliate. "Our relationship with
Premier is very beneficial and worthwhile." 

The program also allows smaller facilities like physician`s offices, ambulatory
surgery centers, and nursing homes to achieve benefits, whether in negotiating
value-adds or bottom line dollars saved. 

"Premier`s group buy program is a win-win for members and suppliers," said Mike
Alkire, Premier Purchasing Partners president. "For members, the program further
reduces costs on quality products and services; and for suppliers, it increases
product visibility throughout the Premier alliance, amplifies their sales
opportunities and expedites their sales cycle." 

Though initially developed for imaging capital equipment purchases, the group
buy program has expanded to incorporate other service lines. Successful group
buys have included products from lines of business such as cardiovascular,
facilities/construction, foodservice, IT services, laboratory, medical/surgical,
and continuum of care services.Recently, a group buy on imaging equipment
resulted in $6.5 million in savings for Premier`s continuum of care members. 

"Constant monitoring of member needs and the healthcare environment are
essential to this valuable program. Premier is committed to offering members the
right products at the right time," said Alkire. "We want our members to have the
widest variety of product and supplier choices so we can continue to help them
decrease their hospital spend and improve the quality of care they provide." 

For more information on the group buy program, please contact Premier`s Solution
Center at solutioncenter@premierinc.com or 704.424.9033. 

About Premier Inc., 2006 Malcolm Baldrige National Quality Award recipient

The Premier healthcare alliance is more than 2,200 U.S. hospitals and
63,000-plus other healthcare sites working together to improve healthcare
quality and affordability. Premier maintains the nation's most comprehensive
repository of clinical, financial and outcomes information and operates a
leading healthcare purchasing network. A world leader in helping deliver
measurable improvements in care, Premier works with the Centers for Medicare &
Medicaid Services and the United Kingdom's National Health Service North West to
improve hospital performance. Premier has offices in San Diego, Charlotte, N.C.,
Philadelphia and Washington. Follow Premier on Twitter. 





Premier Inc.
Alven Weil, 704-733-5797 

Copyright Business Wire 2009

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