You recently assumed the position of CEO at Premier. What are some of your plans for the organization?
I want to transform healthcare from the inside out. Delivery systems are the places we need to work on practice patterns and reducing costs while improving quality. We have a deep supply chain database, a deep clinical database, and a consulting group of subject matter experts. We need to innovate around new concepts because we will be adjusting to a new form of healthcare.

What are some concerns that hospital finance executives bring to you?
All our members are looking at staffing and productivity. There is also an increasing focus on supply chain to drive costs down, and an emphasis on physician relationship strategies. As the reform agenda moves forward, we’re probably going to see more hospitals aligning with one another. And a major, but hidden, cost reduction strategy is infection control.

What are some challenges faced by small hospitals that are different than those faced by larger facilities?
Smaller hospitals have had strains on their operating margins and net income. They have challenges at accessing capital. The smaller facilities live on smaller margins. The larger systems have significant reserves and investments, but they also have challenges in regard to capital access in the credit markets.

What are some legislative changes that you think would improve the way healthcare is delivered in the U. S.?
We have to solve the “access to care” problem. Individual mandates and business mandates are on the table. We fully support transparency and HIT and we support comparative effectiveness. We really think this is not something you fix one system at a time. We need to approach reform systematically.

DeVore is president and CEO of Premier, Inc.