News | October 3, 2007

Detroit Medical Center Extends Relationship With Premier; Performance Partnership To Focus On Improving Results

Charlotte, NC - The Detroit Medical Center has signed a six-year extension with Premier Inc., reaffirming its 22-year relationship with the healthcare purchasing network. The organizations have agreed to enhance their partnership so that DMC can continue to provide for the healthcare needs of a growing community, especially delivering on its mandate to support the underserved.

DMC Executive Vice President and COO Benjamin R. Carter said that "after a thorough review of the leaders in the GPO market, we decided the best decision for DMC is to stay with Premier. Premier's outstanding people and superior technology along with an attractive value proposition best met our needs."

Premier COO Susan D. DeVore said, "We look forward to extending our performance partnership with Detroit Medical Center. Improving patient outcomes while safely reducing the cost of care is a goal we can achieve better by working together. If DMC is successful, Premier is successful."

One of DMC's decision points was Premier's technological offerings designed to help DMC accelerate its financial performance. "Enabling technology truly differentiates Premier. Its value to our members is enormous," said Premier Purchasing Partners President Mike Alkire. "We look forward to deploying our new technology processes and tools – such as SpendAdvisor, our spend management decision support tool – at DMC. For the first time this large IDN will have all spend data in one place. DMC will be able to manage its supply spend effectively at all of its diverse locations and push its performance to the next level."

Beyond technology, DMC Corporate Vice President Materials Resource Management Donald P. Groth said, "Our decision was based on four areas – product market basket price analysis, financial value to DMC, scope of services, and resources in people. Premier's proposal provides DMC the best solution to all four. It is clear that Premier is focusing in the right direction with regard to supply chain management, cost control, quality, and other areas that are of greatest interest to the DMC and its affiliates."

DMC joined Premier in February 1985. The DMC and its affiliates purchase some $300 million in supplies through Premier contracts annually.

SOURCE: Detroit Medical Center and Premier Inc.