Scripps Health, an integrated healthcare delivery network based in San Diego, has renewed and expanded its spend management agreement with healthcare group purchasing organization MedAssets, Inc.
The Atlanta-based GPO will continue to provide group purchasing services, supply chain data and analytics tools and physician preference item consulting services to Scripps Health.
The expanded long-term agreement will see MedAssets providing expertise in clinical pharmacy as Scripps transitions its pharmacy services in-house. Scripps officials say the GPO will identify clinical and operational improvements for efficiency and savings opportunities.
"We have implemented sustainable process improvements in our supply chain operations that allow us to focus our objectives on additional opportunities to improve our margins," said John Armstrong, corporate vice president of supply chain management at Scripps Health. "(We are) taking advantage of greater savings in commodities, the ability to effectively manage pricing for medical devices preferred by our physicians and access to technology that affords greater opportunities for efficiency."
Armstrong said supply costs as a percentage of net revenue have continuously decreased for the last five years at Scripps Health.
Scripps Health is a non-profit healthcare delivery network with four acute-care hospitals, 19 clinics and home healthcare and associated support services. Scripps generated approximately $2 billion in revenue in 2008.