SUCCESS STORY | Supply Chain Management Solutions

Intalere Supplier Medpricer Brings 10% Savings, Efficient Timeline for Crystal Run Healthcare on Capital Furniture Purchase for New Building

The Challenge

Crystal Run Healthcare, a multi-specialty group practice based in Middletown, N.Y., has been expanding at breakneck speed to serve the needs of the Hudson Valley and lower Catskills region. In fact, completion of its new 66,000 square-foot building in Newburgh was even ahead of schedule.

“We took two years in planning this new building which is modeled after the Everett Clinic in Washington State,” said Kevin Keller, director of materials management. “The goal was to provide comprehensive care in one community location and reduced wait times for patients. We wanted an efficient, flexible and patient-focused care environment.”
 
Part of the Lean design approach to the new building was the fact that the office has no waiting rooms, just space-efficient “pause” areas for patients outside of exam rooms. Check-in can be done at an electronic kiosk or in person and check-out is handled in the exam room in order to reduce wait times.

Clinicians enter the exam rooms from the “bullpen” – a behind-the-scenes area of the building that also was created using Lean processes to help clinicians minimize travel time, improve accessibility and enhance care delivery.

The pressure to meet the accelerated construction timeline placed a heavy burden on the materials management team which was tasked to equip and furnish the new building. But after attending an Intalere Eastern Alliance meeting and listening to a presentation from Intalere supplier Medpricer, Keller realized he found a solution that could help.

“I needed a partner to help with the sourcing and procurement of non-medical capital equipment so I could focus my attention and energy on the medical equipment purchases,” said Keller. “It was a job I could have done myself, but with the condensed timeframe it would have been very stressful to manage. It was crunch time and I realized Medpricer would be able to help me find the furniture we needed for the ‘pause’ and ‘bullpen’ areas.” 

The Solution

The contracting process contains numerous unique tasks. It begins with the client providing either a scope of work, a quote or a current contract with reference pricing and goes all the way through to consensus and award.

After a review and planning process meeting between Crystal Run and Medpricer, the project organization was outlined as listed below. These steps reduced the normal contracting process timeframe from three months down to seven weeks. Both teams moved quickly and in just three days completed steps 1 through 8.

Contracting Steps:
  1. Scope of Work, Terms and Conditions Review
  2. Market Intelligence
  3. Price Validation
  4. Data Compilation
  5. Committee Solicitation
  6. Committee Meetings
  7. eRFP Draft Creation
  8. eRFP Final Draft Review
  9. Publish eRFP online
  10. Vendor Management
  11. Initial Proposal Analysis
  12. eRFP Live Event
  13. eRFP Final Analysis
  14. Committee Meetings
  15. Consensus and Award
“Medpricer really took on the heavy lifting,” noted Keller. “It was a large undertaking, but we gave them the timelines up front and they committed to meeting our needs. Additionally, we wanted to award the business to a single-source supplier who could not only meet our interior design requirements, but also deliver the furniture on time.”

Five weeks later, Medpricer completed all the necessary tasks in order to publish the eRFP (electronic request for proposal) and analyze the results. This is particularly notable given the sheer numbers involved – sourcing 118 distinct types of furniture. On the day of the live negotiation meeting, Crystal Run had narrowed the field down to proposals from four vendors.

The very next day, Medpricer provided an analysis to Crystal Run and their vendor of choice came in 10 percent lower than the other three vendors.

“The time savings alone were tremendous. Medpricer acted quickly and we were able to review the bids, making it easy to compare them side by side, with just a few pieces of paper,” stated Keller. “They not only helped make the sourcing process more efficient, but our organization was able to achieve savings opportunities and exceed our business goals.”

The Outcome

Crystal Run received its furniture delivery exactly on time and the new building conducted its grand opening ceremony at the end of the summer.

“It was rewarding to find out the lowest cost from the negotiations came from our preferred vendor,” said Keller. “On a construction project of this scale, a 10 percent savings on our capital furniture purchase was a big win.”

Patients love the atmosphere and the easy-to-navigate wayfinding of the new building. From color cues to signage, every detail within the clinic is designed to support the concept of an open, self-directed patient space. And as a result of the efficient space program, clinicians now have an extra 4-5 minutes to spend with their patients. And since the new building has received so much praise and recognition from the Newburgh community, Crystal Run plans to implement the same design features in two new 70,000 square-foot offices in Monroe and West Nyack.

“Overall, I found the process of working with Medpricer to be good and it went very smoothly. I will use Medpricer again in the future as the need arises,” said Keller.