THE HOSPITAL
Meridian Health
ORKS
Neptune, NJ
WHAT WORKS
THE CHALLENGE
The cost for wound closure products were A new way to negotiate
escalating and negotiating via paper was time
T W
consuming and inefficient.
contracts
THE SOLUTION
Put suture, trocar, and endo-mechanical into one
An innovative hospital and a new kind of sourcing
electronic bid for more aggressive pricing.
company team up to achieve impressive savings
WHA
THE VENDOR Tom Golaszewski, vice president of materials management, Julie Whelan former pur-
MedPricer.com chasing director–Meridian Health; Bob Pelican corporate strategic analyst and Les Grant,
president-MedPricer.com.
A
t 10:00AM sharp on a Wednesday,
those products, hospitals can use electronic
buying staff and well-received by the hos-
the purchasing staff of Meridian
sourcing to quickly and effectively negoti-
pital staff.”
Health gathers in a conference
ate stronger contracts. The result is a fast and
room, along with members of the hospital’s
easy process that generates savings.”
Results
clinical team. The conference room screen At the end of the hour, the savings achieved
shows Meridian Health’s secure online ne-
An innovative purchasing
through this process were dramatic: the
gotiation portal on
MedPricer.com.
department
MedPricer on-line RFP delivered savings
At the same time across the country, 3
Seeking to streamline the contracting process
that were 3 times beyond Meridian’s initial
different teams of vendors are in their of-
and generate savings, Tom Golaszewski, vice
projections. Most importantly, the savings
fices watching their computer screens,
president of resource and material manage-
achieved were from their clinician-preferred
poised to receive feedback on their RFP re-
ment, Julie Whelan, former purchasing man-
vendor, enabling the hospital to improve the
sponses. These vendors are prepared to re-
ager and Bob Pelican, corporate strategic
quality of products while saving money.
spond back with clarifications on terms,
analyst, saw an opportunity to
“The savings realized
new pricing, and more product informa-
bring new technology to the pur-
through the online bidding
tion over the next hour.
chasing cycle.
process was fast, in a little
Meridian Health is set to negotiate a con-
“Online bidding is a powerful
over one hour we negotiated
tract for sutures and trocars – a contract val-
tool,” noted Golaszewski. “We felt
a contract that would have
ued at slightly over $2.9M per year. How-
that MedPricer had a platform
taken over 9 weeks,” stated
ever, instead of employing a lengthy, paper
that worked extremely well for
Golaszewski. “The dramatic
based RFP process that normally takes 9
healthcare and that we could rap-
savings speaks for itself! Be-
weeks or more, Meridian Health is utiliz-
idly apply online bidding to our
cause we created a level play-
ing MedPricer’s unique e-sourcing service
cost-savings initiatives.”
ing field, each supplier had a
for hospitals. This tool allows the hospital
Also, Meridian made the stra-
fair chance to put their best
to conduct an online RFP that will produce
tegic decision to include the clini-
foot forward. As a result, our
stronger results in less than two hours.
Tom Golaszewski,
cians actively in the live RFP pro-
clinicians chose the company
Meridian Health
“MedPricer uses the power of the
cess. “The purchasing department
with the best products for
internet to connect hospitals directly with
respects the value of clinician participation
their departments at a price that was way
suppliers so they can negotiate in real
in the bidding process. The platform made
below our current spend.”
time,” said Les Grant, founder of Med-
it easy to collect and present the informa-
Pricer.com (www.MedPricer.com). “Hos-
tion to our clinicians,” said Golaszewski.
Wound closure bid wraps up
pitals are under enormous pressure to By 11:00AM, the hospital has received mul-
make sure that their dollars are spent
Implementation and support
tiple bids from each of the 3 vendors se-
wisely. MedPricer gives them a powerful
Since MedPricer is web-based, no software
lected to participate, with lively online in-
negotiating tool which produces signifi-
installation is needed – just a computer with
teraction between sales representatives,
cant cost and time savings.”
access to the internet. MedPricer describes
clinicians and the purchasing staff. After
Grant, a former VP of sales for a leading
itself as a service company, and not just a
weighing all the factors, including quality,
medical device company, saw that hospitals
software provider. It provides full customer
pricing, clinician preference, service terms,
using traditional negotiation methods were
support which includes handling the RFP
and value added features, the hospital ar-
not getting the full discounts available to
creation, all of the data entry, and end user
rives at a decision that pleases both the clini-
them. “Due to the growth and merger of
training for the hospital’s selected vendors.
cal staff and the finance team. By using
hospitals into integrated healthcare systems,
They also provide on-site support from start
online negotiations, Meridian Health was
hospitals today have significant volume to
to finish during a sourcing event.
able to negotiate a contract that tripled their
offer their suppliers in exchange for better
“Working with MedPricer is like having
targeted goals from their top-ranked ven-
prices,” noted Grant. “By identifying the
additional positions in the Purchasing De-
dor while upgrading their products - a win
needs specific to their clinicians and creat-
partment,” noted Pelican. “The support pro-
for the clinicians, the purchasing staff, and
ing a competitive bidding environment for
vided by MedPricer is welcomed by the
for the MedPricer process. HPN
48 June 2009 • HEALTHCARE PURCHASING NEWS
www.hpnonline.com
0906-WhatWorks.pmd 48 5/13/2009, 8:39 AM
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