SUCCESS STORY | Supply Chain Solutions 

Intalere Partners With OptiFreight® Logistics to Drive Freight Management Savings for Surgery Center Member

The Challenge

Physicians Day Surgery Center was opened in 1998 in Naples, Fla., by area surgeons committed to providing their patients with the highest quality care in a friendly, personalized and supportive environment.

Entrusted with the care of more than 5,000 patients every year, Physicians Day Surgery Center is proud of maintaining a patient satisfaction rating consistently greater than 99 percent and also takes great pride in their consistently positive patient outcomes.

With so much attention to quality care, Administrator Karen Cannizzaro and her staff are consistently challenged on the business side to reduce costs while maintaining their well-deserved reputation for excellent care.

As with many of her colleagues in surgery centers in the southern Florida area, she relies on her relationship with the group purchasing organization Intalere, particularly her local representative Amber Suka, to help her uncover cost reduction opportunities in supplies and services. “Anything that requires us to expend significant time and resources can be difficult,” said Cannizzaro. “A big part of what we can and can’t implement has to do with how much we have to do to gain that savings.”

The Solution

One easy to manage untapped opportunity Suka presented to Physicians Day Surgery was related to their spending on both inbound and outbound freight. For many healthcare facilities, freight spend is not top of mind, but managing freight is an easy and effective way to reduce operating expenses. It provides a simple way to lower costs without impacting patient care. The ROI is high and the level of change is low. In many cases, the investment of time to implement the program is less than an hour.

Every day, direct freight, large and small, comes in and out of healthcare facilities including medical supplies, patient records equipment and more. Some shipments come from distributors, but for many facilities, more than half come direct from manufacturers and suppliers. And with each direct shipment comes freight charges—shipping fees on top of product costs, charges that add up.

Through Optifreight® Logistics, Intalere offers a freight management solution for inbound shipping costs, as well as costs for outbound shipments. More importantly, facilities don’t have to change who they purchase products and supplies from in order to access this program. “All we had to do was sign onto the program and they handled the rest,” said Cannizzaro.

OptiFreight® Logistics manages more than 14 million* shipments a year, which allows them to aggregate volume and pass those discounts on to participating facilities. This volume of business, coupled with their strong supplier relationships and proprietary technology, allows them to deliver incremental savings year over year. The solution allows healthcare facilities to:

  • Take control — Leveraging their large supplier portfolio, automated activation and compliance processes assist in the management of inbound shipping costs.
  • Reduce costs — Savings continue with the Optifreight® Logistics large freight experts, who can recommend ideal LTL/TL carriers based on price and service.
  • Gain visibility — With OptiFreight® Logistics, you can also access additional cost savings opportunities by optimizing the mode and service level used to ship parcels to match your actual needs for the shipments.
  • Improve accuracy — OptiFreight® Logistics audits shipping costs for pricing accuracy prior to invoicing. This helps ensure that your shipping costs are accurate on the front end – so you can avoid freight audit recovery fees, mitigating the resource effort required on the back end.

The Outcome

OptiFreight® Logistics generally saves healthcare organizations between 30-50 percent per shipment on average* and Physicians Day Surgery Center realized a savings of more than 45 percent on their shipping costs over the course of a year.** “We really had no idea this sort of thing existed, but Amber presented this opportunity and it was effortless to implement,” said Cannizzaro. “A project like this is something we could never do on our own, but with this level of service and support, it was really a no-brainer to take advantage of.”

*Based on shipments through OptiFreight® Logistics during January 1–December 31, 2015. Individual savings may vary.
**Based on Physicians Day Surgery Center’s shipments through OptiFreight® Logistics during April 1, 2015, through March 30, 2016. Individual savings may vary.