Banner Health Saves $226 Million, Extends Premier healthcare alliance Ownership
Phoenix-based health system re-confirms 12-year partnership pairing the largest group purchasing and provider collaboratives with alliance intelligence to improve quality, lower costs
CHARLOTTE, N.C.--(Premier healthcare alliance to align supply chain management with quality improvement, remove waste and disseminate best practices.)--Phoenix-based Banner Health, one of the largest nonprofit healthcare systems in the country, has saved $226 million in five years working with the
“Despite the financial pressures driven by today’s economic and regulatory environment, Banner Health is lowering the costs of healthcare while enhancing patient care, impacting outcomes and furthering the ability to manage population health”
Providing care across seven Western states, Banner recently re-confirmed its 12-year ownership in the alliance. Owned by health systems, Premier comprises nearly half of the country’s acute-care hospitals and more than 93,000 non-acute care sites that work together to lead the movement to better, more affordable care.
“In our years as an owner, we’ve been collaborating closely with alliance members to develop innovative solutions to the challenges being faced in healthcare,” said Peter S. Fine, FACHE, president and CEO of Banner Health. “The saying that there is strength in numbers couldn’t be truer as a member of the Premier alliance. These achievements are the result of our incredible relationship, as well as the breadth of the alliance and data sharing with members. We look forward to future successes to come.”
The savings are from Banner and Premier collaborating on a wide-range of data-driven initiatives to reduce expenses while improving care quality. Banner saved $59 million in 2012 alone. This includes:
- $35 million by addressing utilization variances and standardized supply contracts in the OR, pharmacy, cardiology and cath lab;
- $1.1 million saved participating in a global sourcing project; and
- A 22 percent cost reduction in pharmacy benefit management. And specialty pharmacy initiatives have enabled physician offices to save time and receive patient-level compliance reports to reduce readmissions.
Last year, Banner was the sole recipient of the Richard A. Norling Premier Alliance Excellence Award for its leadership and collaboration with the alliance to provide high-quality, efficient care. Over the years, multiple individual Banner hospitals have received Premier awards for achieving superior supply expense performance, outstanding patient care and operational efficiency. Banner was also recognized for successful innovation with the 2011 Top Leadership Teams award from HealthLeaders Media and was named one of the Top 15 Health Systems in a recent issue of Modern Healthcare. In addition, the organization was named to the 2012 Healthcare Purchasing News Elite 11 and was one of the six Healthcare Finance News newsmakers.
“Despite the financial pressures driven by today’s economic and regulatory environment, Banner Health is lowering the costs of healthcare while enhancing patient care, impacting outcomes and furthering the ability to manage population health,” said Susan DeVore, Premier president and CEO. “The alliance continues to benefit from Banner’s ownership in Premier and we look forward to working together to further improve the health of communities.”
Banner is a member of the largest quality improvement and accountable care collaboratives in the country. The health system works with:
- Nearly 340 hospitals in QUEST® to accelerate the adoption of best practices industry-wide and enhance national care standards; and
- Roughly 90 health systems in Premier’s PACT™ population health collaborative that are sharing best practices to coordinate care, reduce waste and improve population health.
Complementing its purchasing and collaborative efforts, Banner benchmarks and compares clinical and financial data in PremierConnect™ - the largest integrated technology platform and social networking community in healthcare. PremierConnect houses intelligence on 1 in 4 U.S. hospital discharges, from 2.5 million real-time clinical transactions daily and more than $40 billion in annual purchases. This enables data-driven, evidence-based decisions that save lives, remove waste and help coordinate care delivery.
About Banner Health
Phoenix-based Banner Health is one of the largest, nonprofit healthcare systems in the country. The system owns or manages 23 acute care hospitals, long-term care centers, outpatient surgery centers and an array of other services located in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming. www.bannerhealth.com.
About the Premier healthcare alliance, Malcolm Baldrige National Quality Award recipient
Premier is the nation’s largest performance improvement alliance of more than 2,800 U.S. hospitals and 93,000 other sites using the power of collaboration and technology to lead the transformation to coordinated, high-quality, cost-effective care. Owned by healthcare providers, Premier operates a leading purchasing network with nearly $5 billion in annual savings. Premier also maintains clinical, financial and outcomes databases based on 1 in every 4 patient discharges. A world leader in measurably improving patient care, Premier has the largest performance improvement collaboratives in America, including one in partnership with the Centers for Medicare & Medicaid Services. Headquartered in Charlotte, N.C., Premier also has an office in Washington. https://www.premierinc.com. Stay connected with Premier on Facebook, Twitter and YouTube.
Posted: March 27, 2013