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In This Issue:
Toothbrushes: 400,000. Elastic bandages: 350 miles worth. Adhesive bandages: 3.3 million. IV solution: 500,000 gallons.
These and thousands of other types of medical and surgical supplies are used throughout the Partners system, costing, in total, around $135 million per year.
All of these supplies get from the manufacturer to the user through a distributor. As part of Partners' commitment to improving patient affordability by seeking savings and efficiencies while maintaining quality, a hand-picked, system-wide team worked to reduce expenses associated with the distribution of medical and surgical supplies. An allied goal was to consolidate Partners' business with one distributor.
A request for proposal was issued to three distributors, two of which were current distributors. One served most Partners entities and the other served BWFH and the Spaulding Rehabilitation Network (SRN). The selection of the major incumbent distributor required BWFH and SRN to adapt to the change, including staff training and switching to some new products.
"Consolidating Partners' business to one distributor created better economies of scale and allowed for greater process efficiencies-from product procurement to disaster preparedness," said Julie Barrios, corporate manager of Strategic Sourcing for Partners. Total savings is expected to be $1.5 million in the first year and $7 million in cost avoidance over the next six years.
Barrios added that the system-wide team, representing the operating rooms, operations, purchasing, IT and many other areas, was a critical success factor. The team was involved in subprojects ranging from scenario planning and standardizing processes to supply chain operations and disaster preparedness.
"Our team had representation from all facilities, in different roles and capacities," Barrios said. "A critical component of our success was the ability of the on-site Materials Management directors and staff to communicate and implement all changes effectively."
Email patientaffordability@partners.org with your cost-saving ideas.