Contracting News May/June 2007

MedAssets Business Summit
St. Joseph Health System received the Lifetime Financial Improvement Award from MedAssets at the GPO’s recent Healthcare Business Summit in Las Vegas. The IDN has saved $98 million over its multi-year relationship with MedAssets, according to the company. Atlantic Health received the second annual Enterprise President’s Award for its improved financial performance achieved through the complete MedAssets enterprise solution platform. Other IDN award winners at the Summit included: Norton Healthcare (MedAssets Net Revenue Systems Customer of the Year); Maricopa Integrated Health System (Net Revenue Systems Best Practice Leader); 16 customers for the Net Revenue Systems Best Practice Award; Legacy Health System, Vanguard Health System and Mercy Hospital in Iowa (Avega Best Practice Leader Award); and Erlanger Health System, MedCath, Wellmont Health System and Atlantic Health System (MedAssets Analytical Systems Utilization Excellence Award). On the supplier side, OfficeMax and ICU Medical won the Supply Chain Savings Award. Scripps Health CEO Chris Van Gorder received the 2007 Outstanding Humanitarian Award in recognition of his community service and professional excellence. At the summit, which was attended by 2,700 healthcare professionals, MedAssets Chairman and CEO John Bardis shared the company’s plans to expand its revenue cycle management suite through the acquisition of Richardson, Texas-based Xactimed. According to MedAssets, the agreement, which was expected to be finalized in May, will expand the offering of its Net Revenue Systems to include claims management, remittance management, denial management solutions, and other revenue cycle services and consulting.

Spartanburg Hospital seeks to add breast health center
Spartanburg Regional Medical Center, of Spartanburg, S.C., submitted an application with the state to establish a new $13.2 million comprehensive breast health center. The facility will be located on the first floor of the hospital’s cancer center.

Baptist Health’s bariatric center earns honors
Baptist Health Medical Center-Little Rock, of Little Rock, Ark., was named an American Society of Bariatric Surgery Center of Excellence, honoring its demonstrated track record of favorable outcomes in bariatric surgery. Hospital officials credited its pre-operative education, peri-operative care and post-operative follow-ups for its success with bariatric patients.

Tenet to sell Pennsylvania hospitals
A subsidiary of Dallas-based Tenet Healthcare Corp. agreed to sell Philadelphia-based Roxborough Memorial Hospital and Warminster Hospital, of Warminster, Pa., to Solis Healthcare LLC, of Philadelphia, which was created to own and operate the hospitals. Tenet plans to release terms of the agreement upon completion of the sale by June 30, 2007. Solis will offer employment to current employees who are in good standing and meet their conditions of employment.

LifeMasters names new CEO
LifeMasters Supported SelfCare Inc, of South San Francisco, Calif., board of directors named Christobel E. Selecky as CEO after president and CEO David R. Strand announced his resignation on April 23, 2007. Selecky previously served as executive chair of the company. LifeMasters offers disease management programs and services that create health partnerships among individuals, their physicians and payors.

Texas Health Resources unveils new strategic plan
Arlington, Texas-based Texas Health Resources launched a 10-year strategic plan to build a collaborative, accountable model that will develop innovative ways to provide convenient, cost-effective access to care, and that can evolve to meet challenges of the future. THR’s goal is to become a nationally-recognized benchmark system in quality, patient safety and stakeholder satisfaction. The effort will be led by senior executive VPs Barclay E. Berdan and Stephen C. Hanson, who will report to the CEO. In addition, CFO Ron Long will add the new title of executive VP, resource development and deployment, to reflect his responsibility for strategic resource management. To lead a new nurse development program, THR created a new position of senior VP and chief nurse executive, which will be filled by a search beginning in June 2007. THR created a physician organization named Texas Health Resources Medical Group to lead a new physician engagement plan. Leadership for this organization will be named shortly.

United Health names new CEO
Binghamton, N.Y.-based United Health Services named Matthew J. Salanger as CEO of the health system. Salanger will head both United Health Services Hospitals and the parent organization, United Health Services. He replaces Peter McGinn, who is leaving to become a healthcare consultant.

Spine Education forum
Premier Inc. recently held the ninth of its “Spine Education Forum” conferences in suburban Chicago to educate members and answer questions about spine-related technologies and Premier’s spine contracts. The forums are designed for materials managers, OR directors, clinical staff, nurses, surgical technologists, coders and others from Premier facilities. Contract vendors Aesculap, Biomet Spine, Osteotech and Medtronic Sofamor Danek reviewed the anatomy of the spine and the technologies available to repair spinal damage due to degenerative disease or trauma, including metal and hardware, and bone and tissue products. Representatives from DeRoyal discussed that company’s spinal bracing products. Ted Donnelly, Premier senior regional director, and Donna Jansen, Premier clinical field specialist, are hosting the forums. The Charlotte, N.C.-based GPO is planning to hold a series of comparable forums later this year for its cardiovascular-related contracts.

Broadlane chosen by Mee Memorial Hospital
Dallas-based Broadlane Inc. was selected by George L. Mee Memorial Hospital, of King City, Calif., to provide supply chain services under an exclusive agreement. Terms call for Broadlane to provide Mee Memorial with supply chain services for consumable supplies, equipment, pharmaceuticals and purchased services, as well as technology to help manage the hospital’s $8 million in annual supply costs.

Greenville Hospital joins UHC
South Carolina-based Greenville Hospital System became the 97th member of the University HealthSystem Consortium, of Oak Brook, Ill., an alliance representing leading academic medical centers and 149 affiliated hospitals. As a member, GHS will participate in research and protocols, and share knowledge with other UHC members in order to improve quality and patient safety.

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