ATLANTA – Healthcare providers often don’t consult with their physicians when looking at the supply chain – even though the doctors are the end-users of many of the products. MedAssets is looking to change that dynamic with a software solution that brings physicians into the revenue cycle management process.
The Atlanta-based developer of spend management and revenue cycle management solutions announced Thursday that is has expanded its contract with the MultiCare health system of Tacoma, Wash., to implement the company’s Service Line Analytics solution and Clinical Cost Management consulting services. MultiCare, a four-hospital system with 93 primary, urgent and multi-specialty care locations, has been a MedAssets customer since 2004.
The MultiCare deal is one of three announced by MedAssets during the past month with health systems around the country – all designed to, among other things, bring clinicians into the loop when analyzing supply chain economics and determining where waste can be reduced.
Through the expanded contract, MedAssets will work with administrative, purchasing and clinical staff at MultiCare to identify savings opportunities on physician preference items – those supplies that physicians prefer to use, and thus consider to be of value. The Service Line Analytics solution uses business intelligence tools to link reimbursement, supply cost, supply use, clinical factors and other data by physician and MS-DRG, allowing administrators to determine overall costs and clinical outcomes.
“As healthcare costs continue to rise and with healthcare reform changes coming, we needed to do more to control our clinical and supply costs system-wide,” said Vince Schmitz, chief financial officer at MultiCare,. In a January 6 press release. “MedAssets solutions will help us engage our physicians in the cost-reduction process and better manage our operating margins ahead of healthcare reform changes."
“Forward-looking healthcare providers like MultiCare are taking a proactive approach to better manage their costs and drive operational efficiencies across service lines ahead of healthcare reform-related changes that will squeeze reimbursement,” added Rand Ballard, MedAssets’ chief operating officer and chief customer officer. “We look forward to assisting MultiCare as they place a sharper focus on improving their clinical margins and engaging their physicians in the financial improvement process.”
Last month, MedAssets announced that New York-based Westchester Medical Center, a customer since July 2009, had saved approximately $8.1 million on its roughly $125 million annual budget for surgical supplies and pharmaceuticals. The hospital had contracted with MedAssets for Service Line Analytics as well as supply chain analytics, group purchasing and clinical consulting services.
“Prior to MedAssets, WMC had little to no knowledge about the supply contracts that were in place or the reasons behind why certain contracts were being changed from one vendor to another,” said Roger Weems, Westchester’s senior vice president of performance management. “MedAssets' flexibility and creativity in structuring a process that is tailored to WMC’s unique requirements has helped us be more strategic in our approach to supply chain management and has resulted in financial improvement we plan to continue to build on.”
Also last month, MedAssets announced that the Jackson Health System in Miami-Dade County, Fla., will use its tools to tackle supply chain management and engage clinicians in the cost-savings process. The 2,482-bed integrated health system, which includes the third largest teaching hospital in the country, generated net patient revenue of $1.1 billion in 2009.
“The agreement with MedAssets is designed to improve Jackson Health's long-term sustainability by managing spend and driving efficiency,” said David Small, the health system’s chief operating officer. “Our goal is to eliminate costs and engage our entire workforce in identifying savings opportunities and increasing our process efficiency so that we can continue to serve the citizens of Miami with their healthcare needs.”
