This is a white paper written to show the incremental value we bring to the untapped healthcare space.

1. Discovered savings
How Halifax Health saves 11 percent on IT contract renewals
Corporate Contracts
About Cardinal Health
An untapped opportunity About Halifax Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) Ranked among the top five percent of all hospitals
In the new world of healthcare, the pressure has never been greater to
is a $108 billion healthcare services company that improves the in the nation for clinical outcomes, Halifax Health
cut costs while maintaining quality of care. Health systems everywhere
cost-effectiveness of healthcare. As the business behind healthcare, serves East Central Florida and provides a continuum
are looking at their entire spend for new opportunities to save money.
Cardinal Health helps pharmacies, hospitals, ambulatory of healthcare services through a network of
For Halifax Health, that search has uncovered substantial savings that
surgery centers and physician offices focus on patient care while organizations, including a tertiary hospital, a
have been ‘hidden’ in a most unexpected place: the renewal of IT
reducing costs, enhancing efficiency and improving quality. community hospital, psychiatric services, a cancer
maintenance contracts.
Cardinal Health is an essential link in the healthcare supply treatment center with four outreach locations,
chain, providing pharmaceuticals and medical products to more “Every health system and hospital has savings goals to achieve,” the area’s largest hospice, a health maintenance
than 60,000 locations each day. The company is also a leading said Steven Frederick, Vice President of Business Development organization and a preferred provider organization.
manufacturer of medical and surgical products, including gloves, and Marketing for Corporate Contracts. “Working together with Halifax Health offers the area’s only Level II Trauma
surgical apparel and fluid management products. In addition, the Cardinal Health, we identify new savings opportunities in an arena Center, Comprehensive Stroke Center, Neonatal and
company supports the growing diagnostic industry by supplying that, until now, has been relatively untapped. Purchased Services Pediatric Intensive Care Units, Pediatric Emergency
medical products to clinical laboratories and operating the nation’s can save health systems and hospitals significant dollars. Imagine Department, Child and Adolescent Behavioral
largest network of radiopharmacies that dispense products to aid for example, if a health system could suddenly save five percent Services and Neurosurgical Services. Halifax Health
in the early diagnosis and treatment of disease. Ranked #21 on the of a $300 million budget. That’s what we do at Corporate Contracts: has consistently received top ratings for its medical
Fortune 500, Cardinal Health employs more than 30,000 people unlock the savings that our customers are missing — and often, specialties, including #1 in Florida and top 5 percent
worldwide. More information about the company may be found didn’t realize were possible.” in the United States for Orthopedics, #2 in Florida and
at cardinalhealth.com and @CardinalHealth on Twitter. top 5 percent in the United States for Spinal Surgery,
Purchased Services encompass many areas, such as facilities top 5 percent in the United States for Maternity
management, business services, support services and technology. care in 2011, top 5 percent in the United States for
For more information about Corporate Contracts, please For Halifax Health, the outsourcing of IT contract renewal negotiations Stroke Services, top 10 percent in the United States
contact your Cardinal Health Executive Sales Vice President has become a major opportunity, tapping into the unique expertise for Vascular Services and the highest rankings for
or sales representative. of the Cardinal Health and Corporate Contracts team. Heart Services. Halifax Health is also ranked #1 in
the Orlando Sentinel’s 2007 Top 100 Companies for
Working Families. Halifax Health has been Five-
Star Rated in Overall Orthopedic Services, Joint
11 percent savings in first year alone. Replacement, Total Knee Replacement, Hip Fracture
“I’m just really happy about what Treatment and Back and Neck Surgery Spinal Fusion
for 8 years in a row; Five-Star Rated in Spine Surgery
Corporate Contracts does.”
for 7 years in a row and Five-Star Rated in Back and
Cardinal Health and Corporate Contracts have a business relationship under which Dustin Leek Neck Surgery, excluding Spinal Fusion, for 10 years
Cardinal Health is paid a fee by Corporate Contracts related to the promotion of cardinalhealth.com Director, IT Technical Services
Corporate Contract services. in a row. Halifax Health Maternity Care has also
Halifax Health been Five-Star Rated for 3 years in a row and Five-
Cardinal Health Star Rated in Gynecologic Surgery in 2011. For more
© 2012 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO
7000 Cardinal Place information, visit halifaxhealth.org.
and Essential to care are trademarks or registered trademarks of Cardinal Health.
All other marks are the property of their respective owners. Lit. No. 5MC10344 (11/2012) Dublin, Ohio 43017

2. Saving time Enhancing relationships “Corporate Contracts works to get the best prices from a vendor,
and then uses them as a baseline for negotiation on behalf of our
(EMR). “Doctors and nurses will soon see EMR as a tool that’s as
important as a stethoscope,” Leek said. “The future of healthcare
At various times of the year, Halifax Health has IT maintenance In addition to saving time and improving the managers’ focus customers,” said Don Greenwood, Executive Sales Vice President for isn’t paper: It’s 100 percent digital.” This emerging reality will
agreements that are up for renewal. In years past, the health on the business of IT, there are other advantages. Because managers Cardinal Health. “It’s a very collaborative, non-adversarial working command even more attention from IT managers to ensure the
system’s IT managers would be responsible for negotiating no longer deal with pricing, there’s no wedge driven between the relationship with vendors. Corporate Contracts brings them volume, most effective solutions are in place for their health systems,
contract renewals, in addition to all of their other duties. Not vendors and them. As a result, outsourcing negotiations has created they deliver better pricing and as a result, our customers win.” Volume both now and for the future. So relieving them of the burden
only were these negotiations time consuming, but they also a much stronger relationship between managers and vendors. is the key: “It’s actually less risky for us,” Leek said, “because Corporate of contract negotiations will become increasingly vital in the
distracted the IT managers from their primary focus: to And that has paved the way for quality IT results at a substantially Contracts has negotiated the same contract we need probably 60 or months and years ahead.
successfully manage the vision and day-to-day operations reduced cost. 70 times before, while we may only have done it once.”
Beyond negotiating maintenance contract renewals alone,
of the Information Technology (IT) department.
Some IT managers might feel like outsourcing is a risk — that it Leek is also looking to Corporate Contracts to help establish
“For us, outsourcing contract negotiations for IT services “If they don’t save me a dime, then I don’t pay might sour a vendor relationship. “In our experience, silence is golden. new contract relationships. And, he’s spreading the word beyond
Vendors are not pushing back,” Leek said. And it’s a misperception the IT department and into other areas of the health system.
is a no-brainer,” said Dustin Leek, Director of IT Technical them a dime.”
Services for Halifax Health. “Our IT managers no longer spend to think that the savings are ‘not-invented-here.’ There would be “How do we best expand outside of IT? I’m looking at other
Dustin Leek no savings without collaboration initiated by outsourcing. “As an aspects of Corporate Contracts and speaking with our Chief
hours and days on contract negotiations. This gives time back
Director, IT Technical Services IT executive, if it’s your idea, it’s still your idea. Outsourcing contract Revenue Officer and Director of Finance.”
to them to manage and lead our IT efforts.”
Halifax Health negotiations doesn’t make you look bad — it makes you look good.
You can’t lose.” In short, the savings opportunities for Halifax Health are just
Improving focus beginning — and it couldn’t come at a better time. “There’s only so
11 percent savings, with no risk Leek added, “If Corporate Contracts can save you money, it’s much margin to work with in product pricing today,” Frederick said.
Now, Halifax Health’s IT managers can make best use of their time
proof that you shouldn’t have been doing your own contract “Purchased Services are a different story, and Corporate Contracts is
and energy to support the health system’s goal of providing quality, In the first year of using Corporate Contracts, Halifax Health saved
negotiations in the first place. If you save nothing, you’ve lost here to help health systems unlock new savings opportunities.”
cost-effective care. Leek explained, “Our managers’ core expertise 11 percent on IT maintenance contract renewals. “Eleven percent
nothing — and you know you’re on the right track without
is in IT. We want them to be the best IT managers — not necessarily is nothing to sneeze at. I can spend it on other projects — it’s
the best contract negotiators.” found money,” Leek said. “And that’s why I’m advocating Corporate
any assistance.”
About Corporate Contracts
Contracts to other areas of the health system that also have
On the other hand, Corporate Contracts is in the business of high-dollar capital expenses.” What’s next Corporate Contracts is an industry recognized expert in technology
and services procurement. Founded in 2000 and headquartered in
negotiation. “They’re experts at it, so they naturally have more
experience than our IT managers,” Leek said. “Put another way, As Leek and other Corporate Contracts customers have found, Because IT technology changes significantly about every five years, Des Moines, IA, the company has grown profitability for more than
people throughout our health system come to us for IT needs, the pricing model has no risk. Corporate Contracts is compensated there’s an ongoing need to manage IT capital expenses. And that 10 years. Corporate Contracts is the only company in the industry
because they expect us to know it all. We look at Corporate based on the savings it achieves for Halifax Health. “If they don’t means an ongoing need to manage IT contract negotiations, both that provides discrete offerings for each phase of procurement.
Contracts the same way, when it comes to contract negotiations. save me a dime, then I don’t pay them a dime.” for renewals as well as new acquisitions. Cardinal Health and Corporate Contracts are collaborating to expand
The proof is in the pudding, and Corporate Contracts has created this offering within healthcare and provide additional supply chain
How are such significant savings possible? “Because Corporate Another factor driving the need is the acceleration of new
more favorable contract renewals than my IT managers could savings to customers.
Contracts has nationwide experience negotiating IT contracts, they technologies to meet the demand for Electronic Medical Records
have. Now, our managers’ focus is where it belongs: solving
know what other health systems are paying,” Leek explained. This
business problems.”
benchmarking, based on Corporate Contracts’ real-world experience,
“… we find Corporate
helps determine what Halifax Health should be paying for IT services. Saving across the entire healthcare system Contracts tough,
Beyond IT alone, hospitals and health systems such as Halifax Health can take advantage of a broad but fair in their
Proactive, not reactive range of opportunities to save money with Purchased Services. It’s a 100 percent self-funded solution that
Sourcing / Project
Request negotiations on behalf
Knowledge and experience come together to create a
foundation for proactive negotiations that yield fair contract
A proven process Request
Evaluation
requires no monthly fees, subscription, software or need for substantial time and effort on the provider’s
part. Cardinal Health and Corporate Contracts tailor Purchased Services in four major categories:
of their client.”
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