MedAssets (NASDAQ: 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 SavingsPlans 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.
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