In little over a year, the Amerinet Eastern Alliance has experienced significant savings and standardization among its members.
The Amerinet Eastern Alliance (AEA) may be one of the industry’s newer purchasing coalitions, but it certainly hasn’t wasted time finding its foothold. When it formed in 2013, it was with the intent “to bring the purchasing power of all of the facilities Amerinet represented together to standardize and lower cost,” says David Hanline, vice chair of AEA and director of ancillary services at OSS Health (York, Penn.). Since then, the alliance has demonstrated “significant savings and standardization to all the facilities that fall under the AEA, as long as the guidelines are followed,” he points out. “We have worked with the manufacturing side to offer excellent opportunities that normally these facilities would not be open to.”
The Journal of Healthcare Contracting recently spoke with Hanline about the team approach taken by AEA members, which is largely responsible for its fast and steady success.
The Journal of Healthcare Contracting: Who are the Amerinet Eastern Alliance’s members and what are its top initiatives?
David Hanline: We have a total of 14 organizations within the AEA. These range from ambulatory surgery centers, clinics, profit and not-for-profit hospitals. We are currently recruiting new organizations to assist them with their standardization and pricing and to add to the overall spend of the AEA. We feel we can bring a unique perspective to the overall purchasing of any healthcare facility. The top initiatives we have pursued in the last 12 months include distribution, negative pressure and wound care/bandages. We have reviewed and looked at a number of categories to pursue, and during our meetings, we discuss multiple areas to review by quarter.
JHC: How has being part of a regional purchasing coalition enabled your members to leverage their buying power?
David By having the ability to increase usage with a committed contract, it has enabled each facility to lower cost and standardize. This has made each facility wiser in that when a price from the vendor is proposed or already in place, the facility understands that, indeed, with the buying power, we have leverage.
JHC: How much savings has the coalition achieved since it began?
David Depending on the facility and the contract, some facilities have seen over a 20 percent annual savings.
JHC: Can you explain the process whereby your supply chain executives meet and make their decisions?
David We have two representatives from Amerinet – Don Smalley-Rader and Deb Reetz – who do an amazing job. They lead and guide AEA in the direction that is requested. The board meets quarterly in the different regions we represent. We always have open, honest discussions where anything goes. We have discussed numerous healthcare items and work closely together to make the decisions that will best suit the organizations represented.
JHC: How do you co-exist with your GPO, Amerinet?
David We will review any contract from any of the facilities represented, as well as any that Amerinet may bring. We feel that if the AEA is willing to review a potential opportunity from one facility and can open it up to all, then we can see a better opportunity to increase sales for that vendor and show an overall savings to each facility.
JHC: How do you ensure that the interests of each of your facilities are considered and that each facility’s needs are met?
David Each facility represented has a voice and is considered in each opportunity we pursue. A decision is not made without a vote, and concerns are addressed from each represented.
JHC: How difficult is it to get buy-in to the coalition’s contracts from each of your facility’s physicians and staff?
David If the proper procedures are demonstrated within the facility and explained to each physician and staff that it affects, it is a much smoother process. Here at OSS Health, each contract or potential contract is reviewed through our value analysis team. If we need to trial, we move forward with a trial. We will show any cost savings and any benefits the new product may have. If justification can be made as why not to move forward, then this is taken into consideration. If not, then we move forward with implementation.
JHC: Other than cost-savings your coalition has achieved through greater volume purchasing, what has been the greatest benefit of the coalition to its members?
David The ability to sit and discuss issues that your facility may be facing and figure out solutions together. We have discussed all types of issues that may not even relate to purchasing and, together, we have helped resolve some of these.
JHC: How do you envision the Amerinet Eastern Alliance in the next five years?
David We would like to continue to grow and exceed all expectations of our members. We want to be able to provide a base of opportunity that any facility can review to see what we can offer. We plan on being the example for all of the region and for all of Amerinet. We will have an extensive contract portfolio that will be the envy of all purchasing organizations.