Success Stories

Yale-New Haven Hospital (YNHH) is a 944-bed tertiary referral center and the primary teaching hospital for Yale University School of Medicine. Included in the system is the 201-bed Yale New Haven Children’s Hospital, Connecticut’s first comprehensive children’s hospital, which is one of New England’s major referral centers for diagnosis and treatment of pediatric problems. YNHH regularly ranks among the best hospitals in the nation – acknowledged by “US News and World Report” – and is a leader in transplant and cardiac surgery. It handles more than a half million outpatient and ER visits and 50,000 discharges each year, and performs over 26,000 surgeries annually in 37 operating rooms.
 

Yale-New Haven Hospital wanted to improve and enhance its vendor-managed suture and endomechanical inventories to better match product purchasing to usage, and to manage expenses and contract compliance. At times, the hospital was purchasing more product than needed to support its operative case volumes. This made it difficult for YNHH to ascertain the financial impact of new products and technologies in suture and endomechanical devices. It also complicated contract compliance.

 

After reviewing options, YNHH chose O&M’s  PANDAC^SM service to manage suture and endomechanical wound closure inventories.

 

• Recognized $650,000 in savings over three years, net of service fees (implemented 8 years ago)
• Dedicated an O&M on-site analyst to manage the ordering process and all stocking locations, and to continually identify cost-savings opportunities
• Reduced number of SKUs by 32 percent by eliminating obsolete and slow-/non-moving wound closure products, leading to reduced number of product storage locations
• Significantly reduced stock-outs in OR inventory through daily count order management
• Tracked backorders, daily communicating to end-users daily via white board
• Managed contracted volumes and carved out SKUs that failed to meet physician specifications, improving rebate performance and vendor-customer partnership
• Due to service success, expanded PANDAC^SM to other product categories and other hospitals in the health system

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