Health System Innovator in Midwest Selects McKesson for Strategic Supply Sourcing Management

Saint Luke’s Health System leverages its supply chain as a key strategic asset with advanced solution from McKesson

ATLANTA--()--McKesson announced today that Saint Luke’s Health System, Kansas City, Mo., has secured the McKesson Strategic Supply Sourcing™ solution, the industry’s first formulary-based procurement and value analysis suite. The cloud-based tool enhances item master content, and through artificial intelligence, helps promote the organization’s product preferences to help drive accuracy at the point of requisition. Saint Luke’s, comprised of 10 hospitals and numerous clinics, physician offices, and other non-acute locations, sought greater control over product purchases as they have moved away from a traditional supply chain strategy toward a demand-driven, clinical focus.

“We have the data already, but it’s a matter of what systems you are going to invest in to pull that data together to ensure accuracy across all your facilities, as well as your non-acute and physician areas”

“As we expand our health system, we are transforming our overall supply chain performance through automation of managing contracts and directing value analysis,” says Michael D. Darling, RN, MS, CMRP, Vice President of Supply Chain at Saint Luke’s Health System. “Strategic Supply Sourcing, with its cloud-based requisition tool extended to thousands of requisitioners in an easy-to-use format, is an obvious win. In addition, we will gain the ability to quickly and perpetually normalize and enhance our item master.”

The McKesson solution enables clients to perform user-friendly searches from the marketplace’s 1.2 million plus enriched, normalized catalog items, and identifies both lower cost and substitute products, while it validates contract prices and reconciles back orders. The healthcare supply chain industry now has an easy-to-navigate, consumer-like purchasing tool.

“Previously, this market lagged behind such robust performers as Amazon.com® and Google©—until now,” explains Sherri Milam, Director Resource Management Systems and Data for the Corporate Resource Management Division of Saint Luke’s Health System. “I was captivated from the first moment I saw this technology. I knew this is it; this is where we need to go. With strategic supply sourcing, we are closing the gap that once existed. The solution, which is entirely healthcare driven, will allow us to gain more control over our purchases and contracts, while giving control to our customers in a familiar format of web-based ordering that is seamless.”

Saint Luke’s Health System faces challenges familiar to many providers, experiencing significant pressure to reduce costs in the midst of health reform and decreased reimbursements. The supply chain became a sensible target area for realizing potential savings for the organization, with over $200 million spent annually on supplies alone. According to Darling, the organization aims to eliminate waste and implement significant savings with the McKesson solution not only supporting this process but also sustaining it.

Furthermore, the organization plans to execute strategies focused on outcomes and total cost versus costs of individual items in its supply chain. “We have the data already, but it’s a matter of what systems you are going to invest in to pull that data together to ensure accuracy across all your facilities, as well as your non-acute and physician areas,” Darling explains. “And with this solution, we will now have the capability. It’s a game-changer for us, not just in our marketplace with the goal of inventory rationalization, but also for the national and international vendors with whom we work.”

“Lowering operating costs in today’s healthcare climate has become a huge challenge for hospitals nationwide,” says Russell R. Smith, Vice President, Enterprise Information Solutions, McKesson Technology Solutions. “It takes strong leadership and attentive insight for an organization to leverage its supply chain as a strategic asset, and Saint Luke’s is really differentiating itself from its competitors with forward-thinking strategies.”

To learn more about the capabilities of strategic supply sourcing and formulary-guided procurement, visit www.mckesson.com/supplychain.

About McKesson Corporation

McKesson Corporation, currently ranked 15th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. We partner with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit us at www.mckesson.com.

Saint Luke’s Health System

Saint Luke’s Health System consists of 10 area hospitals and several primary and specialty care practices, and provides a range of inpatient, outpatient, and home care services. Founded as a faith-based, not-for-profit organization, our mission includes a commitment to the highest levels of excellence in health care and the advancement of medical research and education. The health system is an aligned organization in which the physicians and hospitals assume responsibility for enhancing the physical, mental, and spiritual health of people in the metropolitan Kansas City area and the surrounding region.

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Contacts

SHIFT Communications
Katie McGraw, 781-879-2395
MTS@shiftcomm.com

Release Summary

McKesson announced today that Saint Luke’s Health System, has secured the McKesson Strategic Supply Sourcing™ solution, the industry’s first formulary-based procurement and value analysis suite.

McKesson Corporation