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Adopting electronic processes and standardization to a product formulary help position a growing health system for success.
When Steve Piraino, Director of Corporate Purchasing and Supply Chain, began working at Einstein Healthcare Network over six years ago, he expected system growth, since the network planned to build a new hospital and acquire a primary care physician group. However, this new growth, combined with a reduction in staff head-count, had the unintended impact of a 280% increase in workload per full-time employee.
Because almost 84% of Einstein’s payer mix is public, controlling costs is critically important. Like many other health systems, Einstein faced declining reimbursement rates as the case mix moved from admitted to observed patients. Costs and complexity increased further when Einstein’s non-acute facilities began buying a wider range of SKUs than previously.
In order to maintain healthy operating margins, Einstein Healthcare Network needed to transition from manual to automated business processes, address their repetitive supply chain functions and reduce their supply costs.
“Prior to McKesson, problems with credit holds, operational inefficiencies and lack of EDI made our processes almost entirely manual. We now have 110 EDI connections with all of our major manufacturers. Because of all the work we’ve done, acquistions no longer cause us pain.”
— Steve Piraino, Director of Corporate Purchasing and Supply Chain, Einstein Health Network
Einstein implemented a number of McKesson’s tools and analytics to drive standardization, automate manual processes and reduce cost. With McKesson’s help, Einstein:
Einstein has already seen notable savings and efficiencies as a result of their collaboration with McKesson.
To date, Einstein has:
*The results as stated may vary and may not reflect the typical user’s results.