Temple University Hospital Saves $19M With Clinical Resource Management

This case study highlights how Temple University Hospital leveraged supply chain and clinical resource management solutions to reduce item master correction times, increase on-time delivery rates, and generate more than $19M in savings in just two years.

Getting the right supplies and equipment in the hands of clinicians, at the right time, is one of the cornerstones of effective patient care. The supply chain plays an integral role in that mission, and when it falters, it can have far-reaching implications for the organization's clinical and financial effectiveness.

When first hired as chief executive officer of Temple University Hospital (Temple) in Philadelphia, Sandra Gomberg had many tools to evaluate the supply chain, representing a $120 million in annual spend – and how it was meeting its strategic commitment to the organization. Concerns voiced to Gomberg at regular forums helped underscore the need for supply chain improvements to better serve physicians and hospital employees. Once the diagnosis was complete and with a plan to address it in hand, Gomberg and her leadership team sought to forge a partnership with a group purchasing organization (GPO) that would meet Temple's long-term strategic and tactical objectives. In the process, Temple set into motion an overhaul of its supply chain operations exceeding $19 million in documented savings. The result was new efficiencies, significant savings, and an expanded pursuit of opportunities to achieve sustained financial improvement.

Problem
Temple cares for Pennsylvania's highest volume and percentage of medical assistance patients – and receives lower reimbursement rates for that population. Competing against providers with higher commercial payor mixes, Temple's careful stewardship of financial resources required a prioritized approach that emphasized timely, targeted investments in programs and services.

According to Ed Chabalowski, chief financial officer, when Temple began its search for a new GPO partner, "the supply chain was broken and very fragmented. We needed to start with the basics." The hospital was facing fundamental operating challenges, such as significant accounts payable match-exception, a 21-day lag in fixing item master errors, a 40 percent on-time delivery rate, and poor inventory management resulting in audit adjustments. "We needed supply chain expertise at the table and that's what led us to select MedAssets," says Chabalowski. Access This Content To Read This Case Study in Its Entirety.