IHN Sourcing Co-Op Joins VHA Inc. To Maximize Supply Chain Savings Opportunities
Irving, TX--(Marketwire) - Responding to intense pressures to improve their operating costs and prepare for the post-reform era, the five hospital members of the Ohio-based Independent Hospital Network (IHN) Sourcing Co-op have joined VHA Inc., the national health care network. These five hospitals collectively purchase approximately $124 million in supplies and services annually and expect the move to VHA will enhance their ability to optimize their supply chain and achieve greater efficiencies in resource management. In addition, IHN members also plan to leverage VHA's clinical improvement services to support their efforts to enhance patient care and capitalize on VHA's expertise in facilitating member networks.
The IHN Sourcing Co-op includes:
- Alliance Community Hospital, Alliance, Ohio
- Aultman Hospital, Canton, Ohio
- Dunlap Community Hospital, Orrville, Ohio
- Pomerene Hospital, Millersburg, Ohio
- Union Hospital, Dover, Ohio (already a VHA partner)
"We had been the only member of IHN that was part of VHA, but we felt very strongly about the value of their field staff, the local supply network and our regional office," said Bruce James, chief executive officer, Union Hospital. "We encouraged the other members of IHN to take a careful look at VHA, and we are delighted that the group agreed with our assessment about where we could gain the greatest value."
Collectively, these five Ohio hospitals serve patients in five counties in Northeastern Ohio.
"We selected VHA as a group purchasing partner following an extensive review," said Chris Remark, chief operating officer and vice president, Aultman Hospital. "We determined that VHA, and its supply contracting company, Novation, offered us the greatest opportunities to manage costs in a responsible manner. Supplies represent the single largest expense for any hospital behind labor, so we are anticipating meaningful progress in our supply chain management work as a result of our VHA relationship."
"VHA has had a very strong relationship with Union Hospital, and we look forward to expanding the value that we can provide through working with the other members of their local group, the Independent Hospital Network. These member networks are at the core of what VHA does and we believe they will only become more important in the future," said Patti Sweeney, senior vice president, executive officer, VHA Central. "The IHN members are leaders in their markets and we will work with the IHN members to improve their supply chain performance as well as their clinical outcomes and patient experience. They are a wonderful addition to VHA's strong presence in Ohio."
In addition to joining VHA's national network, the members of IHN will also join VHA's regional network, which includes hospitals in Indiana, Kentucky, Michigan and Ohio. The VHA regional office is located in Indianapolis, Indiana.
About VHA -- VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance and identify and implement best practices to improve operational efficiency and clinical outcomes. In 2010, VHA delivered record savings and value of $1.7 billion to members. Formed in 1977, VHA serves nearly 1,350 not-for-profit hospitals and more than 30,000 non-acute care providers nationwide, coordinating delivery of its programs and services through its 16 regional offices. VHA has been listed as one of the best places to work in health care by Modern Healthcare since 2008 and one of the best places to work in IT by Computer World since 2007.
SOURCE: VHA Inc.