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MedAssets Amends Texas Purchasing Coalition Agreement to Add Hendrick Health System

^{Published on 2011-05-27 08:36:00 - Market Wire}
 

ATLANTA--([ BUSINESS WIRE ])--MedAssets (NASDAQ: MDAS) today announced it has amended its multi-year agreement with Texas Purchasing Coalition (TPC) to provide for the addition of its newest member, Hendrick Health System (Hendrick), which includes a 504-bed acute care medical center located in Abilene, Texas. The amendment follows the announcement in January 2010 that TPC, a member-owned supply chain management partnership, had signed a multi-year agreement with MedAssets to provide innovative supply chain solutions.

"Hendrick recognized the importance of finding innovative ways to reduce costs to prepare for what healthcare reform will bring, which is less money to provide the same level of care"

MedAssets Strategic Sourcing Supports Leveraged Buying Power

Hendrick serves 22 counties in Texas and employs more than 2,700 people. The community institution decided to switch from its incumbent group purchasing organization (GPO) and join TPC in an effort to lower the costs of its hospital-related supplies. With the addition of Hendrick, TPC now comprises 11 healthcare organization members representing 27 hospitals across Texas. Its members and affiliated physicians have gained buying power by contracting in unison for items within MedAssets [ comprehensive contract portfolio ], which includes more than 1,800 contracts with over 1,100 leading manufacturers and distributors of high quality medical products and supplies. The combination of TPCa™s economies of scale and MedAssets strategic sourcing solution has enabled TPC to create a customized, customer-driven approach to reducing total supply costs.

In addition to GPO and customized supply chain management capabilities, as a member of TPC, Hendrick also stands to benefit from MedAssets physician preference item (PPI) consulting services and spend management analytics to further enhance cost reduction opportunities. By assessing clinical utilization and engaging clinicians in the cost containment process, MedAssets will support Hendrick clinicians and administrative staff in the development of performance tools and processes to enhance compliance and identify saving opportunities, including high-expense medical devices and supplies.

Value Analysis to Control Costs at a Whole New Level

aWe were impressed that MedAssets strategic sourcing solution allows for contract customization that supports the TPC business model,a Tim Lancaster, president and chief executive officer, Hendrick. aAfter reviewing our options, we realized that joining this coalition also would give us access to MedAssets knowledge, technology and experts to control costs at a whole new level. Acting on our own we could never afford to staff conducting a comprehensive value analysis on the total costs of care. This agreement is an essential step toward sustaining our financial viability and ability to continue to provide excellent patient care in our community.a

Documented TPC Benefits to Date

Since December 2010, MedAssets has supported TPC members in achieving $32 million in cost savings. A majority of the results to date stem from analysis of utilization and purchase practices of PPIs, which typically can represent 40 percent of a hospital supply budget.

aHendrick recognized the importance of finding innovative ways to reduce costs to prepare for what healthcare reform will bring, which is less money to provide the same level of care,a said Geoff Brenner, president and chief executive officer, Texas Purchasing Coalition. aMedAssets has brought structure, process and predictability to an otherwise challenging and disparate supply chain process. Our members are benefiting from aggressive pricing programs combined with flexibility in contracting to maximize benefits. Our results to date demonstrate we have made the right choice.a

According to John Bardis, chairman, president and chief executive officer, MedAssets, aThe addition of Hendrick to the Texas Purchasing Coalition is a testimony to the appeal of MedAssets capability to deliver a single-source option for healthcare providers seeking contemporary spend management strategies. We understand that the challenges of the modern healthcare environment demand that hospitals seek innovative tools and solutions for fundamental process change. We are gratified to expand our relationship with the Texas Purchasing Coalition and to continue our good work to support its members in transforming operations to achieve sustainable performance improvement and maintain delivery of high-quality care.a

About Hendrick Health System

Hendrick Health System was founded in 1924 as a not-for-profit healthcare institution in response to a community need for quality healthcare. Today, Hendrick Health System includes Hendrick Medical Center, licensed for 500 beds, and a comprehensive range of healthcare services, including centers for care in women's, cancer, rehabilitation, children's and cardiovascular services. With more than 2,700 employees, Hendrick serves 21 counties in the Texas Midwest area. Hendrick has received the Gallup Great Workplace Award for five years in a row and has earned the Pathway to Excellence designation from the American Nurses Credentialing Center. In fall 2009, Hendrick broke ground on Project 2010, the largest expansion project in the hospital's 85-year history. For more information, visit [ http://www.hendrickhealth.org ].

About Texas Purchasing Coalition

The Texas Purchasing Coalition (TPC) is a supply chain management partnership that operates across Texas. The TPC is comprised of 11 Texas not-for-profit health systems representing 27 facilities that have committed to work together to lower their supply costs. The TPC enables its members to be recognized as one large system, thus aggregating their purchase volume and commitment to maximize tiered pricing options, create unique value, and develop customized programs. Combined, TPC members represent approximately $800 million in annual supply purchases. For more information, go to [ www.thetpc.com ].

About MedAssets

MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve financial strength by implementing spend management and revenue cycle management solutions that help control cost, improve margins and cash flow, increase regulatory compliance and optimize operational efficiency. MedAssets serves more than 180 health systems, 4,000 hospitals and 90,000 non-acute healthcare providers. The company currently manages $45 billion in supply spend and touches over $316 billion in total patient revenue annually through its revenue cycle solutions. For more information, go to [ www.medassets.com ].

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