Success Stories

Longstanding customer of Owens & Minor (O&M), Stanford Hospital & Clinics (SHC), is known worldwide for its state-of-the-art care in cardiovascular medicine and surgery, cancer diagnosis and treatment, organ transplantation, neurology and neurosurgery and other complex surgeries. The Palo Alto, Calif.-based hospital has 611 licensed beds and 100-plus clinical specialty and subspecialty areas. The health system also includes the Lucile Packard Children’s Hospital, a non-profit, 264-bed hospital devoted to the care of babies, children, adolescents and expectant mothers. Consistently recognized among “America’s Best Hospitals,” the health system ranks number 15 in the “US News & World Report” lineup. 

 

In 2007, SHC’s decided to leverage its entire supply chain to support its business growth strategy and enable significant investment in infrastructure. Rex Fieck, SHC’s director of materials management, believed that an efficient, sustainable, enterprise-wide value analysis program could provide the desired results by building on SHC’s existing materials councils and successful program in perioperative services.

 

Together, SHC and O&M implemented a enterprise-wide value analysis program tailored to the health system’s key needs across a wide range of purchased good and services. O&M dedicated a six-person Value Analysis Team from OMSolutions^SM – its resource management and consulting business unit – to work with SHC’s Materials Management & Process Excellence Team.

• Achieved $9.2 million in annualized cost-savings in 9 months – a result of implementing only half of the identified savings opportunities 
• Developed an eight-step, system-wide process to conduct thorough analysis and make selection decisions on a broad range of goods and services; implemented a tracking tool to measure success of ongoing initiatives and related cost-savings 
• Reduced budgeted monthly supply expense per adjusted patient discharge by 5 percent for three consecutive months
• Achieved cost-savings across a wide range of goods and services – for example, saved a quarter million dollars by renegotiating SHC’s valet parking services contract
• Formed value analysis teams across functional areas – HR/finance/materials management, cardiology/radiology, support services, patient care, lab services
• Engaged and empowered multiple internal stakeholders – from management to physicians; established executive-championed steering committee chaired by the VP of clinical services

Read more about the strategies and results of this partnership success in the PDF linked below.