Community Hospital Corporation (CHC) has partnered with HealthTrust Purchasing Group (HPG) to provide independent community hospitals access to supply chain management and purchasing opportunities through HPG. Through this partnership, independent hospitals can achieve system-level pricing and an average annual savings of 9% on supplies without being part of a large healthcare system. CH Consulting serves as a liaison between HPG and smaller community hospitals, conducting supply analysis and transitioning hospitals to HPG's portfolio to maximize savings opportunities. Hospitals report significant anticipated and actual savings from partnering with CH Consulting and HPG.

1. SOLUTIONS
The Situation
Supply Chain Management
CHCCommunity Hospital Corporation
The Solution
Community Hospital Consulting (CH Consulting),
the management and consulting arm of CHC,
has partnered with HealthTrust Purchasing
Group (HPG) to provide community-based
hospitals with comprehensive supply chain
management and access to HPG’s portfolio
of specially priced, clinician-recommended
products and services.
For independent hospitals, a relationship with CH Consulting brings aggregated purchasing volume and
more favorable pricing, resulting in significant savings.
“Participating in the CH Consulting GPO allows a hospital to obtain system-level pricing without being
part of a large healthcare system,” said Tony Ybarra, SVP of Supply Chain for CHC. “On average, we are
seeing savings of about 9 percent annually.”
For today’s healthcare organizations, joining a group purchasing organization, or GPO,
can significantly reduce supply costs while streamlining the procurement process.
By combining its supply spend with that of the group, a healthcare organization gets
the buying power and leverage of a much larger entity. Unfortunately, since smaller
independent hospitals don’t have as much purchasing volume, they tend to receive
less favorable pricing than their larger counterparts. This is where Community
Hospital Corporation (CHC) can help.
(over)
Together, CHC-owned facilities and CH Consulting clients have an
annual spend of $126 million and expect to save $5.9 million annually
by using HPG.
Our supply-chain cost savings have
been tremendous. Our projections
show we’ll save $953,000 in one
year, and in actuality we probably
will exceed that.”
~ Jim Welsh
Director of Materials Management,
Huntsville Memorial Hospital
Huntsville, Texas
“

2. Community Hospital Corporation
5801 Tennyson Parkway, Suite 550, Plano, Texas 75024
Phone: 972/943.6435 Fax: 972/943.6401
www.communityhospitalcorp.com
CHC’s Experience
In 2009, CHC began an extensive review
process to determine the best GPO for its owned
hospitals. After a Request for Proposal process
and significant due diligence, CHC chose
HPG. As a hospital-owned GPO, HPG stands
apart from other GPOs in that commitment to
superior patient care and sensitivity to physician
preference guide its purchasing efforts.
Its Clinical Advisory Boards, made up of
clinicians and hospital management from
member facilities, continually evaluate the
products and services offered, and then standardize the procurement of high-quality products through
select vendors in order to maximize purchasing volume and increase savings. However, while most
products and services are offered through only a few contracted vendors, “physician preference”
areas such as cardiovascular and orthopedics are managed differently with the understanding that
selecting appropriate medical devices is a physician’s prerogative. As such, a broader contract
selection in these areas is available.
Joining the CH Consulting GPO
CH Consulting serves as a liaison between HPG and community-based hospitals with less than $25
million in annual material purchasing. All CH Consulting clients – regardless of size – have access to
the same pricing on medical and surgical supplies; pharmaceuticals; and human resource services,
including employee benefits, relocation and background screening. Together, CHC-owned facilities
and CH Consulting clients have an annual spend of $126 million and expect to save $5.9 million
annually by using HPG.
For each prospective member, CH Consulting conducts a supply chain and cost analysis, which
identifies items already being purchased by the healthcare organization that are exact matches with
HPG’s contract items. This shows how much new members can save simply by purchasing those
same items through the GPO. Then, with an eye toward maximizing savings, CH Consulting works
with the healthcare organization to smoothly transition to HPG’s products and services portfolio.
CHC owns, manages and consults with community-based hospitals. For more information
about our services, call Mike Bowers, VP of Business Development at 972.943.6400.
Our contracts are definitely
more favorable since partnering
with HealthTrust and CHC.
Our savings over a year’s time
made this a positive move for
the hospital.”
~ Jim Henderson,
Director of Materials Management,
Artesia General Hospital
in Artesia, New Mexico
“