Stellaris Health Network Chooses MedAssets to Support Sourcing Best Practices, System-wide Supply Ch
Stellaris Health Network Chooses MedAssets to Support Sourcing Best Practices, System-wide Supply Chain and Clinical Integration
New Group Purchasing Agreement, Use of Service Line Analytics and Provision of Clinical Consulting Services to Support Sustainable Cost Savings and Performance Improvement
ATLANTA--(BUSINESS WIRE)-- MedAssets (NAS: MDAS) and Stellaris Health Network (Stellaris) today announced a new, multi-year agreement designed to support the healthcare system in achieving supply chain performance improvement, sustainable cost savings and enhanced clinical integration across its four Westchester County hospitals and employed physician groups.
Under terms of the agreement, MedAssets is providing Stellaris, a four-hospital, clinically integrated health network based in Armonk, N.Y., with strategic sourcing, business intelligence and process improvement consulting. MedAssets team of experts will collaborate with Stellaris to improve supply chain processes, as well as create greater visibility into cost savings and productivity opportunities related to clinical resource utilization, service line performance and the integration of pharmacy and clinical preference items.
"We are very pleased to forge this new business relationship, which we expect to drive the best supply chain performance, increase clinical product and pharmacy protocol standardization, and codify system level clinical value analysis," said Art Nizza, president and chief executive officer, Stellaris Health Network. "MedAssets presented a clear return on investment expectation for each of its defined service offerings. This partnership reinforces our System's fundamental value equation; a lower cost structure combined with extensive clinical integration and quality initiatives provide value for the Hospitals, their physicians and our constituents in Westchester County."
Near-Term Savings Goals and Long-Term, Sustainable Cost Savings
Plans call for Stellaris, across its four acute-care facilities and owned physician practices, to utilize MedAssets for a best practice approach to standardize its supply chain operations. The foundation of this comprehensive implementation is the healthcare organization's conversion to MedAssets strategic sourcing services, including its leading group purchasing organization (GPO). Greater transparency into supply chain usage and spend, including integrating drug purchases and utilization, will be driven through MedAssets technology-enabled business intelligence, service line analytics, and clinical cost management consulting services. Within the next 18 months, Stellaris expects to achieve greater physician alignment, identify additional cost savings opportunities and realize about $10 million in annual, sustainable savings, or approximately 6.5 percent of its total supply spend.
"We look forward to working in cooperation with Stellaris to help achieve positive financial and clinical performance as demanded by comprehensive healthcare reform," said John Bardis, chairman, president and chief executive officer, MedAssets. "Healthcare providers must identify and act upon opportunities to reduce costs, and drive greater resource utilization and operating efficiency. We are committed to working with Stellaris to implement best practice strategic sourcing, technology and consulting services solutions to help them increase the value of their System to their constituents."
About Stellaris Health Network
Founded in 1996, HealthStar Network, Inc. (dba Stellaris Health Network) is the corporate parent of Lawrence Hospital Center, Northern Westchester Hospital, Phelps Memorial Hospital Center, and White Plains Hospital Center. In addition to the network of hospitals and employed physicians, Stellaris provides ambulance and municipal paramedic services across Westchester County, New York. With nearly 1,100 in-patient beds, 400 employed physicians and $900 million in revenue, Stellaris provides a range of high quality, community-based services such as hospice, home health, behavioral health and physical rehabilitation for residents of Westchester, Putnam, Rockland, Dutchess, Northern Bronx, and Fairfield Counties. For more information, please visit www.stellarishealth.org.
MedAssets (NAS: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 4,200hospitals and 100,000non-acute healthcare providers. The company currently manages $48 billion in supply spend and touches over $340 billion in gross patient revenue annually through its revenue cycle solutions. For more information, go to www.medassets.com.
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