SUCCESS STORY | Supply Chain Solutions | Intalere Solutions Group
Intalere OptiPrice Advantage for Critical Access Hospitals Provides Negotiating Leverage, Clear Path to Savings for Arizona Critical Access Hospital
Wickenburg Community Hospital is a non-profit organization owned and operated by its citizens. Established in 1926 and, like the tenacious Western spirit that built Wickenburg, the rural community hospital and clinics are committed to quality health and wellness services where the patient, family and community come first.
Approximately 60 miles northwest of Phoenix, Wickenburg Community Hospital is federally designated as a Critical Access Hospital and state designated as a Level IV Trauma Center supporting the needs of residents and surrounding rural communities within approximately 3,300 square miles.
Their campus includes specialized emergency medicine, advanced lifesaving technology, critical cardiac care, Mayo Clinic telestroke partner services, community clinics, and surgical and diagnostic services. They also feature a 19-bed acute care unit, laboratory, medical imaging, cardiopulmonary, pharmacy, rehabilitation center, infusion center, wound care center, fitness center, internal medicine, family medicine, sports medicine, allergy program, interventional pain management program, venous insufficiency program, and orthopedic and general surgeries.
As a smaller, critical access facility, Wickenburg faced many of the same issues facilities of similar size are challenged with when negotiating with vendors for supplies and services. “Because of our size as a smaller, rural facility, we are challenged in negotiating with suppliers since we don’t have the volume to get any preferred pricing,” said Patti Clavette, business manager for purchasing and financial performance.
Those problems were especially illustrated when Wickenburg opened a surgery center in 2016. Clavette described it as somewhat of a “free for all” in the frenzy to ensure that all vendors and supplies were in place for the facility’s debut.
As a member of Intalere since 2002, Wickenburg had partnered with the company on several cost reduction initiatives over the years, so when Intalere representatives shared information on Intalere OptiPrice AdvantageSM (Powered by BroadJumpTM) for Critical Access Hospitals, Clavette had definite interest.
OptiPrice Advantage for Critical Access Hospitals allows customers to compare the EXACT price they are paying for medical surgical items to what other providers are paying. They have the data points needed, through comparison to other hospitals/systems, as strong negotiating leverage. The data includes:
- Date purchased.
- Annual quantity purchased.
- System size.
- Bed size.
- Current data (no data older than 12 months).
The real-time product cost transparency helps hospitals capture savings on medical and surgical supply costs. “The software is very user-friendly, displaying what we’re paying against other facilities of similar size and volume,” said Clavette. “We now know what suppliers are charging other facilities.”
According to Shon Wettstein, Intalere vice president of business development, hospitals may spend months gathering information to negotiate a single pricing amendment. Even then, they may lack meaningful pricing information with which to negotiate. Intalere OptiPrice Advantage for Critical Access Hospitals helps balance negotiating power with suppliers and significantly reduces the cycle time to renegotiate pricing agreements.
More than 700 hospitals from across the country submit their medical surgical products pricing data once a month to the Intalere OptiPrice Advantage database, which is refreshed on a daily basis. Participants can simply log into Intalere OptiPrice Advantage for Critical Access Hospitals to determine the appropriate pricing of individual products or groups of products. They see the exact price others are paying for the same products, making it a vital tool in the value analysis process to ensure facilities are receiving the best price.
The Wickenburg team implemented the OptiPrice software quickly and easily as it is web-based. With the leverage provided by the application, they were able to negotiate more favorable pricing on supplies they did not previously have the time or information to more strategically address. The savings were dramatic.
- Nearly 50% on knee positioners.
- 25% on endoscopy supplies.
- 17% on knee and hip implants.
Wickenburg’s experience illustrates the impactful, bottom-line benefits of Intalere OptiPrice Advantage for Critical Access Hospitals.
- Efficient: Reduces negotiation preparation.
- Transparent: Offers access to real medical surgical product prices paid by peer hospitals.
- Tactical: Provides trusted, timely data to strengthen your negotiating position and achieve a clear path to savings.
- Easy to use: Learn the system in minutes and receive ongoing customer support.
Clavette also said the Wickenburg team was appreciative of the more methodical and strategic way it allowed them to approach contracting negotiations and was looking forward to using the tool in further negotiations where it could be of most benefit.