CASE STUDY
Breakthrough Value
MedStar Health uses aptitude as a strategic lever to quickly identify and execute savings initiatives. As the largest healthcare provider in Maryland and the Washington, D.C., area with over $5 billion in net operating revenue, MedStar Health has critical mass around almost everything they purchase. They are also equal owners of the MNS Supply Chain Network (MNS) – comprised of three similarly sized Integrated Delivery Networks (IDNs) – which leverages a combined $3 billion in annual spend on services and supplies to generate savings for their organizations. “Over the years, MNS has executed many network contracts and delivered sizeable savings for the three IDNs,” said Ed Robinson, Vice President of Integrated Support Operations for MedStar Health. “But it was brought to our attention that, even though benchmarking data was showing we were achieving close to ‘best in industry’ pricing in many categories, suppliers still had some room to move given the right circumstances.”
“It allows us to quickly award our business to the suppliers that provide the best overall value with the transparency health systems and suppliers need to tackle bigger savings opportunities.”