Hospitals Save $86 Million in One Year Through Volume-Driven Purchasing Opportunities

Premier healthcare alliance group buy program savings percentages have increased by 44 percent since last year, EXPRESSbuy™ opportunities average 78 percent savings

Business Wire


Hospitals participating in the Premier healthcare alliance’s group buy program saved $86 million last year through coordinated, volume-driven purchasing opportunities.

The group buy program consists of a variety of savings events beyond Premier’s already low national group purchasing agreement pricing. Savings percentages have increased by 44 percent since last year due to opportunities that add more value to providers. These include the:

  • EXPRESSbuy™: an exclusive, limited-time proprietary online application allowing providers to purchase needed items immediately. Upfront commitment allows members to achieve additional value.
  • PowerBuy™: an exclusive, limited-time opportunity to aggregate volume across the entire membership to drive deeper discounts. Upfront pre-commitment allows members to achieve additional value.
  • Traditional group buy: voluntary, coordinated, volume-driven purchasing opportunities.

In the past year, 168 EXPRESSbuy opportunities have provided average overall savings of 78 percent over top tier pricing. In fact, one provider saved 97 percent on 900 boxes of Doxycyline Hyclate paying $7,000 instead of $220,000. Premier negotiated with a generic pharmaceutical company to sell the drug exclusively to alliance members before its market price increased. This single EXPRESSbuy opportunity greatly benefited 114 providers that participated.

“We’re always looking for savings opportunities,” said Maria Christofis, materials management supervisor, Carilion Clinic, Roanoke, Va. “I had placed an order the day before when I saw the same thing on EXPRESSbuy. I showed it to the purchasing director and said ‘We’ve got to buy at this price.’ We’re very pleased with the savings, and we’ll be paying more attention to EXPRESSbuy in the future – that’s for sure.”

The EXPRESSBUY program was featured at Premier’s 2013 Breakthroughs Conference and Exhibition allowing providers to purchase directly from the trade show floor. In doing so, they could examine the products onsite, ask questions and get detailed information immediately. Twenty-two EXPRESSbuy opportunities were available across 18 suppliers.

Group buy program director Mike Jankowski said, “This was the first time we made EXPRESSbuy events available to members at Breakthroughs and it was well received by both providers and suppliers.”

The program also supports smaller facilities like physician offices, ambulatory surgery centers and nursing homes to achieve benefits, whether in negotiating value-adds or bottom-line dollars saved. Members benefit from early shipments, special financing rates, trade-in programs, preventative maintenance, training, service programs and extended warranties.

“Providers today must find ways to safely reduce costs. With Premier’s scale, our members can access cost-effective high-quality products and services,” said Durral Gilbert, Premier president of supply chain services. “Alliance members and suppliers alike benefit from our group buy program, which increases the visibility of valuable products.”

As a provider-owned performance improvement alliance of approximately 2,900 U.S. community hospitals and 100,000 alternate sites, Premier operates a leading purchasing network with approximately $40 billion in annual purchasing data. Since 2006, members participating in Premier’s group buy program have saved more than $500 million on more than $2 billion in products.

Successful group buys have included products from cardiovascular, facilities, imaging, pharmacy, medical/surgical, and continuum of care services lines of business. Upcoming events include: televisions and imaging equipment.

About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient

Premier is one of the nation’s largest performance improvement alliances of approximately 2,900 U.S. community hospitals and 100,000 alternate sites using the power of collaboration and technology to help lead the transformation to coordinated, high-quality, cost-effective care. Owned by healthcare providers, Premier operates a leading purchasing network and also maintains clinical, financial and outcomes databases based on 1 in every 4 U.S. community hospital discharges. A leader in measurably improving patient care, Premier has one of the largest performance improvement collaboratives in America, including one in partnership with the Centers for Medicare & Medicaid Services. Headquartered in Charlotte, N.C., Premier also has an office in Washington.

Premier healthcare alliance
Alven Weil, 704-816-5797


View Comments (0)