Illinois-based Medline Industries, Inc. selected as vendor of choice following a comprehensive RFP process
LOUISVILLE, KY. (January 22, 2014): Baptist Health and Norton Healthcare have joined to form a joint purchasing arrangement for the acquisition and distribution of medical and surgical supplies, implants and devices for the two health systems. Medline Industries, Inc., a global medical supply company based in Mundelein, Ill., was awarded the contract following a request for proposal solicited from each of the hospital system’s incumbent distributors.
The two hospital systems entered into the joint purchasing agreement in an effort to reduce expenditures for medical supplies through efficiencies realized, and economies of scale created, by the joint arrangement. “Increasingly, we are seeing partnerships like this among health care providers all across the country,” said Michael K. Reeves, system executive, Supply Chain Services, Baptist Health. “The Affordable Care Act, health care reform overall and the constant pressure on health systems to do more with less without sacrificing quality have all resulted in providers being more creative to contain costs.”
“While we continue to maintain totally separate health service operations, we both also recognize the tremendous opportunity to reduce our respective expenses for supplies through this purchasing agreement,” said Jim Graham, system director, Purchasing, Norton Healthcare. “Ultimately, the communities we serve and the patients we treat will benefit from lower costs while we maintain our traditional focus on service, safety and quality.”
Early estimates of combined savings for the systems through this relationship with Medline are projected to exceed $15 million over the life of the five-year contract, according to their respective purchasing projections. The total combined spend for both organizations for items and services covered under the joint purchasing agreement is approximately $85 million annually.
Medline will be the primary provider of medical/surgical supply distribution services for both health care systems. “Medline is pleased to have been selected as the partner of choice by these two health care leaders,” said Jim Abrams, chief operating officer, Medline. “We will be focused not only on total cost considerations, but on providing superior customer service and support, technology enhancements and other value added services that will deliver savings as well as greater efficiencies. This is a unique partnership in the world of health care and we are delighted to be a part of it.”
About Baptist Health
Kentucky's Baptist Health (formerly Baptist Healthcare System), headquartered in Louisville, owns seven acute-care hospitals with more than 2,100 licensed beds in Corbin, La Grange, Lexington, Louisville, Madisonville, Paducah and Richmond. Baptist Health manages Hardin Memorial Hospital in Elizabethtown and Russell County Hospital in Russell Springs.
For 90 years, Baptist Health has stood for high-quality care, patient satisfaction and nursing excellence, owning two of the four adult Magnet-designated hospitals in Kentucky. Baptist has grown its physician network to more than 450 employed physicians and more than 1,600 independent physicians. In addition to hospitals, Baptist Health includes urgent care and retail-based clinics, home health care, outpatient diagnostic and surgery centers, occupational medicine and physical therapy clinics, fitness centers and a health maintenance organization (HMO).
About Norton Healthcare
For more than 127 years, Norton Healthcare’s faith heritage has guided its mission to provide quality health care to all those it serves. Today, Norton Healthcare is a leader in serving adult and pediatric patients throughout Greater Louisville, Southern Indiana, the state of Kentucky and beyond. The hospital and health care system is the Louisville area’s third largest private employer, providing care at more than 140 locations throughout Greater Louisville and Southern Indiana. The Louisville-based not-for-profit system includes five Louisville hospitals with 1,837 licensed beds; 7 outpatient centers; 12 Norton Immediate Care Centers; more than 12,000 employees; more than 630 employed medical providers; and in excess of 2,000 total physicians on its medical staff. Norton Healthcare has been recognized as one of the best places to work in Metro Louisville, the state of Kentucky and nationally. Norton Healthcare and Humana were among the first nationally, and the only ones in Kentucky, asked to create, operate and study the Accountable Care Organization (ACO) model through the prestigious Brookings – Dartmouth ACO Pilot Project. More information about Norton Healthcare is available at NortonHealthcare.com.
As the nation's largest privately held manufacturer and distributor of health care products, Medline manufactures and distributes more than 350,000 products to hospitals, extended care facilities, surgery centers, physician offices, home care agencies and providers, and retailers. Named one of the country’s "Best and Brightest Companies to Work For,” Medline is headquartered in Mundelein, Ill. and has more than 1,100 dedicated sales representatives to support its broad product line and cost management services. For more information on Medline, go to www.medline.com or http://mkt.medline.com/clinical-blog/category/channels/social-channels/ to connect with Medline on a variety of social media channels.
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