Adventist Health System is pleased to announce that two of its hospitals – Adventist GlenOaks Hospital in Glendale Heights, IL and Takoma Regional Hospital in Greeneville, TN – are recipients of the Premier healthcare alliance’s first-ever Supply Chain Excellence Awards recognizing superior supply expense performance.
The two AHS hospitals were among a group of 18 recipients. The awards were presented in ceremonies at Premier’s Annual Breakthroughs Conference and Exhibition June 19-22, 2007, in Orlando.
“Achieving and sustaining strong supply chain performance is essential to a healthy bottom line to ensure that the health needs of our communities are met. Therefore, safely reducing supply expense is the definitive focus of Premier and our members,” said Mike Alkire, President of Premier Purchasing Partners. “We are pleased to recognize the significant accomplishments of these facilities. Its efforts lead the way for our more than 1,500 member hospitals.”
The winners’ supply expense performance is measured by Premier’s SupplyFocusTM, the industry’s largest comparative database of operational and supply chain cost information for acute care hospitals. Winners were identified using four industry standard supply expense ratios and a case-mix-index-(CMI)-based peer grouping methodology to ensure that organizations of diverse sizes and complexity were considered equally.
Supply expense ratios include supply expense as a percent of total operating expense, supply expense as a percent of net patient revenue, supply expense per adjusted patient day, and supply expense per adjusted discharge.
“Each of these metrics has strengths and weaknesses if examined alone; however, in aggregate, organizations that perform well in these metrics are excellent, all-around supply chain performers,” Alkire said.
To be eligible, each organization had to submit four quarters of calendar 2006 data to SupplyFocus by April 30, 2007. With 40 indicators measuring and trending performance in cost and operations, SupplyFocusTM enables hospitals to compare supply expense performance to that of similar facilities and easily identify improvement opportunities.