Case Study: Yuma Regional Medical Center

In Less Than 90 Days, Medpricer Saves Yuma Regional Medical Center from 30% Cost Increase

Yuma Saves 10% with new Contract

Summary

Yuma Regional Medical Center wasn’t completely satisfied with the quality of service its incumbent linen service supplier was providing. When this supplier shared its intention to increase costs by 30%, Yuma sought Medpricer’s expertise to determine what kind of savings opportunities might be available. Medpricer initially ran a Precision Benchmark Report which identified 9% savings. After this discovery, Medpricer met with Yuma Regional Medical Center’s stakeholders to discuss additional terms to consider, taking on 4 tasks to discover Yuma’s full savings potential. 

Background

Yuma Regional Medical Center is an award-winning not-for-profit hospital based in Yuma, Arizona. It has a staff of 2,400 employees, more than 400 medical practitioners and hundreds of volunteers to oversee 406 beds for the residents of Yuma and the surrounding area.

Without a dedicated purchased services team, Yuma Regional Medical Center enlisted Medpricer’s help in July 2019. The incumbent supplier’s contract was due to expire in September, so Medpricer was tasked with:

  • Benchmarking the average price for this purchased services category
  • Identifying HLAC or TRSA Certified Linen Service Providers
  • Running an expedited RFP, giving suppliers three weeks to respond (rather than the typical 3-6 weeks)
  • Hosting a live negotiation using mSource® Negotiate

Results

Following Medpricer’s three-week RFP, its managed services team delivered the RFP results with a financial analysis and highlighted important terms for Yuma Regional’s consideration. Following Medpricer’s three-week RFP, its managed services team delivered the RFP results with a financial analysis and highlighted important terms for Yuma Regional’s consideration. Next, the team used mSource® Negotiate to host a 2-hour negotiation with five potential suppliers.

Negotiations revealed cost savings on the price per pound and improved KPIs with associated penalties. After much thought, Yuma Regional Medical Center selected Angelica as its new linen services supplier. The new relationship provides Yuma Regional Medical Center with:

  • A TRSA certified linen services supplier
  • Improved KPIs that ensure deliveries are made on time and that orders are complete when received.
  • Over 10% savings over the incumbent supplier
  • Improved terms and conditions on service quality

“The negotiation process encouraged open communication, enabling us to seamlessly connect suppliers and to our stakeholders,” said Sean Hazlett, Director of Supply Chain Services of Yuma Regional Medical Center. “Our team was thrilled to access both cost savings and improved service terms with our new supplier. From start-to-finish, over two and half months, Medpricer worked with us every step of the way to help us access the best supplier for our needs.”

About Medpricer, a Premier company

Medpricer is a Premier company (NASDAQ: PINC) that moves savings strategies forward with scalable purchased services solutions that improve sourcing efficiency and financial health. Its industry-leading software, mSource®, is the only all-in-one contract management, negotiation, and analytics platform that enables organizations to tailor contract terms to fit their unique needs. Medpricer enables organizations to engage with their purchasing data, learn from market intelligence, unite stakeholders, and move contracts through the pipeline – faster. No catches, no hidden admin fees. Discover substantial savings and deliver outcomes that continuously improve the quality of patient care. To learn how other leading healthcare providers are transforming their savings strategy, call (888) 453-4554 or visit www.Medpricer.com.

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