UHC Member Hospitals Win Novation's Standardization Awards

The Ohio State University Medical Center Exemplifies Standardization Programs' Success

Sep 15, 2011, 10:46 ET from UHC

CHICAGO, Sept. 15, 2011 /PRNewswire/ -- Thirty-nine awards were presented to UHC members by Novation, UHC's supply contracting company, for achievements in standardization in 2010. UHC account executives delivered commemorative awards to the winners.

Since their inception in 1998, Novation's standardization programs have provided more than $911 million in rebates—$85 million in 2010 alone.

The Ohio State University Medical Center, one of the award winners, averages $165,000 per quarter in rebates from Novation's standardization programs. Ohio State's contract manager, Chuck Miller, works with more than 50 departments to assess the feasibility of product standardization, and the departments reap the rewards of the standardization programs.

"We give rebated dollars back to each department that is using the standardized products," said Miller. "They're sharing in the benefit of the program. It makes it easier to gain their cooperation in cost-saving initiatives because we're meeting their needs and returning money to them so that they can better serve their customers. We participate in all of Novation's standardization programs, and I look forward to any new or enhanced ones," added Miller.

Standardizing supplies in selected areas helps hospitals reduce variation in their nonclinical preference products while increasing ordering efficiencies. Hospitals can improve processes and lower costs through:

  • Error reduction through increased experience with a single product line
  • Clinical focus and increased efficiency through consistent training and guidelines
  • Decreased costs via rebates
  • Rewards for achieving good business practices
  • Streamlined inventory
  • Optimal contract pricing
  • Sustainable long-term benefits

Novation's standardization awards program has 2 categories:

  • The Executive Savings Award recognizes members that have saved more than $250,000 through rebates.
  • The Participation Leader Award recognizes members that have successfully implemented all 11 of Novation's standardization programs.

"Standardization programs are among the many ways that UHC and Novation help members reduce supply chain costs and increase efficiencies, which is critically important in the face of intensifying cost pressures," said Jake Groenewold, senior vice president, Supply Chain, UHC.

Executive Savings Award Winners
Greenville Hospital System (Greenville Memorial Hospital)
Harborview Medical Center
LAC + USC Healthcare Network
Medical University of South Carolina
NYU Langone Medical Center
The Ohio State University Medical Center
Oregon Health & Science University
Parkland Health & Hospital System
Penn State M.S. Hershey Medical Center
Shands at the University of Florida
Stanford Hospital & Clinics
Tampa General Hospital
UAB Health System (UAB Hospital)
UC Davis Medical Center
UCLA Health System (Ronald Reagan UCLA Medical Center)
UC San Diego Health System
UCSF Medical Center
University of Arkansas for Medical Sciences (UAMS) Medical Center
University of Colorado Hospital
University of Iowa Hospitals and Clinics
University of Kentucky Hospital
University of Maryland Medical System (University of Maryland Medical Center)
University of Utah Hospitals and Clinics
University of Virginia Health System (University of VA Medical Center)
University of Washington Medical Center
University of Wisconsin Hospital and Clinics
UNM Hospitals
Virginia Commonwealth University Health System (MCV Hospital)Wake Forest Baptist Health

Participation Leader Award Winners
Hennepin County Medical Center
The Ohio State University Medical Center
Parkland Health & Hospital System
UCLA Health System (Ronald Reagan UCLA Medical Center)
University of Illinois Medical Center at Chicago
University of Kentucky Hospital
University of Washington Medical Center
Wake Forest Baptist Health
Wishard Health Services

About UHC

UHC is an alliance of the nation's leading nonprofit academic medical centers, which are focused on delivering world-class patient care. Based in Chicago, Ill, UHC fosters collaboration with and among its 114 academic medical center and 255 affiliated hospital members through its renowned programs and services in the areas of comparative data and analytics, performance improvement, supply chain management, strategic research, and public policy. UHC helps its members achieve excellence in quality, safety, and cost-effectiveness. Formed in 1984, UHC's membership includes more than 90% of the nonprofit academic medical centers in the United States. For more information, visit uhc.edu.