California hospital saves money by joining healthcare alliance

El Centro Regional Medical Center recently saved $1.2 million in its first year of being in partnership with a healthcare alliance, illustrating that such a relationship could be beneficial to a medical center's supply chain.

Small, independent rural hospitals are in need of financial security, considering many are facing state and federal funding cuts. Supply chain management has become more important to companies looking to achieve this goal of security.

"We signed a simple agreement that did not tie our hands," said Tony Hinds, senior director of ECRMC supply chain management. "It offered us better pricing in return for aggregating our volume with Adventist Health. It's a no-brainer - if you want a seat at the table, if you want to be heard, if you want to be a part of the decision-making process, and if you want to save a lot of money."

The Adventist Health Materiel Management Affiliate Program team leaders help affiliates by communicating with them on a regular basis to analyze spend for savings and consult on other supply and procurement issues, such as contracting.

HealthCareITNews.com recently quoted a supply chain expert, recommending IT systems support maximum flexibility for hospitals to see the most benefit.