Centegra Health System Engages MedAssets for Total Cost Management Capabilities
Joins Growing List of Provider Organizations Seeking Company's Expertise to Accelerate Cost Reduction Strategies and Improve Operational Efficiencies
ATLANTA--(BUSINESS WIRE)-- MedAssets (NAS: MDAS) today announced that Centegra Health System (Centegra), located in McHenry County, Ill., is among a growing list of healthcare organizations across the country to enlist the company's total cost management capabilities and technology-enabled services to reduce costs and improve operational efficiencies.
According to the new, multi-year contract, Centegra has selected MedAssets as its exclusive group purchasing organization (GPO). The health system also will utilize the company's Supply Chain Optimization services and Capital and Construction Solutions to pursue savings opportunities in the pharmacy and other supply categories, while enhancing the project and financial management of building a 128-bed hospital.
"MedAssets offered a holistic approach to utilize expert analysis and market intelligence data to reduce our total cost of care above and beyond the GPO," said Michael Eesley, chief executive officer, Centegra Health System. "Centegra is expanding to meet the growing communities we serve including a third hospital in Huntley that was recently approved as the first new hospital in Illinois in 30 years. Ensuring efficiency and integration among our full healthcare delivery model is essential. Reducing waste is a high priority for us, and part of our strategic plan to prepare for the economic realities of healthcare reform. MedAssets is committed to helping Centegra drive financial improvement, and we feel as though they are advantageous partners. Together, we will take into account all the key factors that can optimize an organization's operating performance and financial strength," Eesley concluded.
Providers Seek Partners for Aligned Success
As healthcare providers across the country prepare for dramatically reduced reimbursement levels, greater risk and patient outcome accountability, MedAssets has seen an increased market demand for its Spend and Clinical Resource Management capabilities. In 2012, nearly 30 healthcare provider clients signed Strategic Sourcing and other cost management agreements with MedAssets to reduce operating costs. Of those new clients, 79 percent converted from their incumbent GPOs, and more than half have also selected to engage the company's technology-enabled Clinical Consulting and Workforce Optimization services, as well as its Capital and Construction, Process Improvement and Procurement Solutions. In addition to Centegra, recent new sourcing and spend and clinical resource management agreements include:
- Alameda Health - Oakland, Calif.
- Benefis Health System - Great Falls, Mont.
- Methodist Hospital of Southern California - Arcadia, Calif.
- Sharp HealthCare - San Diego, Calif.
- Stellaris Health Network - Armonk, NY
Access to Industry Leading Contract Portfolio
"In an environment where every dollar counts, hospitals and health systems can no longer afford to stick to traditional group-purchasing and supply chain management concepts," said John Bardis, chairman, president and chief executive officer, MedAssets. "We offer the greatest breadth and depth of cost reduction strategies and solutions while partnering with our healthcare provider clients through our consulting and analytics expertise to engage key stakeholders to drive cost out of organizations. Our unique combination of market intelligence, financial and clinical analytics and consultative expertise creates a cohesive path for hospitals and health systems to address the financial challenges of today while more effectively and accurately plan for the future."
About Centegra Health System
Centegra Health System was created in 1994 when Memorial Medical Center in Woodstock, IL and Northern Illinois Medical Center in McHenry, IL joined forces to become the region's leading healthcare provider. Centegra Health System serves McHenry County and parts of Lake and Kane counties in Illinois and Walworth County in Wisconsin. Centegra Health System has Level II Trauma Centers and Level II nurseries at both medical centers. In addition to Emergency Services and Obstetrics, Centegra is also known for its regional cancer program -- the Centegra Sage Cancer Center, the Centegra Heart Center, the Centegra Rehabilitation Network, Centegra Occupational Health and Centegra Behavioral Health services. Centegra recently expanded its ambulatory care services at both hospitals, enlarged the Centegra Sage Cancer Center, and expanded its medically based fitness center, Health Bridge Fitness Center.
MedAssets (NAS: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 4,200 hospitals and 122,000 non-acute healthcare providers. The company currently manages $50 billion in supply spend and touches over $365 billion in gross patient revenue annually through its revenue cycle solutions. For more information, go to www.medassets.com.
KEYWORDS: United States North America Georgia Illinois
The article Centegra Health System Engages MedAssets for Total Cost Management Capabilities originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.