The Cleveland Clinic and VHA have formed a joint venture that the companies say will transform the traditional group purchasing approach.
Their new joint venture, a limited liability company, will integrate physicians and their preferences in an effort to remodel traditional purchasing approaches by ensuring that decisions about supplies are based on superior clinical protocols, appropriate utilization practices, research and comprehensive analytics.
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For example, in selecting a mesh product, a contract based on wound classification and patient outcomes from a provider vantage point will enable the organization to purchase the items at a best-in-class price and drive appropriate product use, the companies explained in an email to Healthcare Finance News.
“(The partnership) 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,” said Steve Glass, Cleveland Clinic CFO.
Through the partnership, Cleveland Clinic will get services from Novation, VHA’s group purchasing source.
The Cleveland Clinic and VHA, of Irving, Texas, a national network of not-for-profit healthcare organizations, will work together “for a clinically integrated healthcare supply chain that assures quality and savings at each step in the process,” said Curt Nonomaque, VHA president and CEO.
The two organizations expect the strategic partnership to lower supply costs, reduce operating expenses, standardize products and improve visibility into supply chain costs through analytics. Utilization protocols and governance will streamline the variations in clinical practices across the enterprise, improving quality and reducing costs.