CHICAGO, June 4, 2014 /PRNewswire/ -- UHC announced today that its member academic centers achieved record supply chain savings and net value of more than $420 million in 2013. The savings include $136 million in patronage dividends returned to members and documented operational savings of $284 million.
Members' participation in UHC's advanced analytics; assistance with physician preference items, supply utilization, and standardization; and the collaboration of member and UHC experts were instrumental in achieving the record savings.
Price leadership from Novation, UHC's supply contracting company, contributed to member savings by providing members with price rollbacks, cost avoidance, and price protection. UHC members' participation in Novation contracts increased by more than 12% in 2013, to $9 billion.
"Academic medical centers continuously look for ways to reduce costs and improve clinical outcomes," said Jake Groenewold, UHC's senior vice president, Supply Chain. "We're proud of the accomplishments of UHC members and their continuing pursuit of excellence. They are models of leadership and sustainability in health care. Increased utilization of UHC Supply Chain Intelligence™ and contracting and sourcing from Novation continue to bring bottom line value to our members."
UHC Supply Chain Intelligence™ is part of the UHC Intelligence™ suite of solutions that help member hospitals improve patient safety and outcomes, reduce costs, and increase organizational efficiency. UHC's robust databases integrate operational, supply chain, and clinical data, giving hospitals spend visibility and insights into opportunities for improvement throughout their enterprises.
UHC is an alliance of the nation's leading nonprofit academic medical centers, which are focused on delivering world-class patient care. Formed in 1984 and based in Chicago, Ill, UHC fosters collaboration with and among its 120 academic medical center and 301 affiliated hospital members through its renowned solutions in the areas of performance improvement, product innovation, supply chain management, strategic research, and public policy. UHC helps its members achieve excellence in quality, safety, and cost effectiveness. UHC's membership includes the leading nonprofit academic medical centers in the United States. For more information, visit uhc.edu.
Founded in 1998, Novation is the leading health care supply chain expertise, analytics and contracting company for the more than 100,000 members and affiliates of VHA Inc. and UHC, 2 national health care alliances; Children's Hospital Association, an alliance of the nation's leading pediatric facilities; and Provista, LLC. Novation provides alliance members with sourcing services, as well as information and data services. Based in Irving, Tex, Novation develops and manages competitive contracts with more than 800 suppliers. Members of VHA, UHC, Children's Hospital Association, and Provista used Novation contracts to purchase approximately $49 billion in 2013. Novation has earned the coveted Ethics Inside® Certification from Ethisphere Institute, a leading international think tank dedicated to the research and promotion of best practices in corporate ethics and compliance. Novation was also named on Ethisphere's World's Most Ethical Companies list, and is the only company in the health care industry to earn both distinctions for 3 consecutive years. To learn more about Novation, visit www.novationco.com.