• Article
  • April 26, 2016

Seattle Children’s Identifies $1 Million in Savings from Onsite Purchased Services Assessment

By making purchases as a collective and sharing knowledge, member hospitals are gaining efficiencies, saving money and improving performance.

Seattle Children's Hospital, a participant in CHA's Supply Chain Services program, completed an onsite purchased services assessment with Vizient, CHA's group purchasing partner. This assessment helped identify more than $1 million in potential savings opportunities for the hospital. With that information, Seattle Children's strategic sourcing and value analysis team went to work to determine the best options for implementing these savings opportunities. In some cases, the hospital went to current suppliers to enhance existing agreements or signed new contracts based on the benchmarking data.

But it was an enhanced agreement for electronic payment services that resulted in one of the largest savings for Seattle Children's. In addition, the assessment also revealed the organization had multiple contracts in place for elevator services. "We terminated the contracts and standardized to one elevator agreement, which drove additional savings," says Dan Salmonsen, director of Strategic Sourcing and Value Analysis at Seattle Children's.

Other purchased services where the organization saw savings included interpretation, medical coding and freight agreements. There are currently a few key purchased services contracts in negotiations. "We've already saved $400,000, but if these negotiations go as expected, Seattle Children's savings for purchased services could be more than $700,000 a year," Salmonsen says.

The purchased services assessment is available to any hospital participating in CHA's Supply Chain Services program. The more than 30 children's hospitals in this program spend about $2 billion annually on services such as temporary nurse staffing, clinical equipment maintenance, document destruction and interpretation services. By making purchases as a collective and sharing knowledge, member hospitals are gaining efficiencies and saving money. Contact Julie Benson for more information.