Success Stories
OC Reilly Inc. counsels and assists its valued clients in achieving success in supply chain management. This page offers examples of those stories.
West Virginia United Health System
OC Reilly healthcare supply chain consulting enables largest health system in West Virginia to achieve seven-figure savings in sensitive patient care areas while maintaining high quality of care.
AT A GLANCE:
Customer: West Virginia United Health System
Market: Healthcare
Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to healthcare providers today. OCR Supply Chain and Medical Equipment Management (MEM)™ approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.
“We knew we needed to tackle some of the most challenging categories of supply chain contracting where we had not made significant inroads in the past. OC Reilly provided us with market intelligence, physician engagement skills, and vendor negotiating expertise that enabled us to successfully enter the physician preference arena and achieve significant savings from market leading vendors.” – Steve Bowman, Corporate Procurement Director, West Virginia United Health System
Background:
West Virginia United Health System (WVUHS), a six-hospital health system delivering all forms of high-level patient care, uses high-cost products and medical equipment, dramatically affecting its financial bottom-line.
Challenge
Leadership at WVUHS – including physicians, surgeons and executive administrators – realized the financial stress created by the costs associated with Physician Preference Items (PPI) and Medical Equipment Management (MEM) product choices, but were not sure how to address the issue in the most effective manner. They allowed OC Reilly the opportunity to assist.
Solution:
Drawing on its national and regional resources, OC Reilly’s team of healthcare supply chain experts recommended that WVUHS consider PPI alternatives, starting with spine products. This was done in a manner to determine appropriate levels of care without compromising quality. OC Reilly also assessed WVUHS’ MEM spend, identifying options to lower costs in the maintenance and repair of these expensive assets and services.
Results:
Through the validation process, WVUHS maintained some existing products but determined that certain other PPI recommendations from OC Reilly required a concerted effort on the part of WVUHS, its physicians and the OC Reilly team to convert to alternative but comparable products. The combined efforts succeeded, while significantly reducing spend. Also, by re-negotiating its medical equipment maintenance contracts, WVUHS dramatically reduced costs without any changes to equipment coverage or uptime. The product and sourcing initiatives identified by OC Reilly improved the health system’s annual bottom-line results by seven figures.
About WVUHS:
The West Virginia United Health System is the largest healthcare system in West Virginia, and the state’s second-largest private employer. Established by the West Virginia Legislature and the voluntary affiliation of several non-for-profit hospitals in 1996, it now encompasses six acute-care hospitals — including the flagship Ruby Memorial Hospital on the campus of West Virginia University — dozens of medical offices, and a diverse network of affiliated organizations. WVUHS member hospitals provide about 25 percent of the inpatient hospital care in the State of West Virginia.
Meadville Medical Center
OC Reilly healthcare supply chain consulting enables major regional health system in Pennsylvania to achieve seven-figure savings by auditing existing contracts and enforcing their terms diligently.
AT A GLANCE:
Customer: Meadville Medical Center, Meadville, PA
Market: Healthcare
Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to healthcare providers today. OCR Supply Chain and Medical Equipment Management (MEM)™ approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.
Contact: William J. O’Connor, President, OC Reilly Inc., wjo@ocreilly.com
“It had become apparent that inefficiencies in our spending were causing us problems, but it became difficult to pinpoint where the major areas of concern were occurring. OC Reilly provided us with the knowledge of health care supply chain processes and administration to not only identify where the pain was happening, but also a plan to improve process and keep our spending well controlled.” – Rene Suntay, Chief Financial Officer, Meadville Medical Center
Background:
Meadville Medical Center is a leader in healthcare in northwestern Pennsylvania, with the newest technology, including the latest generation of ultrasound, CT and MRI technology
Challenge:
Leadership at Meadville Medical Center became concerned over financial stress created by rising costs associated with Physician Preference Items (PPI) and Purchased Services, including administrative services related to laboratory expense, and even laundry and linens. Administrators were not sure how to address the issue in the most effective manner. They allowed OC Reilly the opportunity to assist.
Solution:
Drawing on its deep, proven first-hand experience in healthcare supply chain matters, OC Reilly’s team of experts conducted a thorough audit of total joint purchases, along with a full spectrum of administrative expenses. Those audits uncovered over-selling among total joint manufacturers, invoices from service providers that over-charged or charged for items not within the contract, and other areas of waste.
Results:
By following the OC Reilly recommendations in identifying unjustified expenses and strictly enforcing the terms of contracts, Meadville Medical Center was able to assist in bringing its spending back into tighter control, positioning the healthcare system for continued success. The OC Reilly process has saved Meadville Medical Center millions of dollars to date.
About Meadville Medical Center:
Meadville Medical Center is an outstanding community hospital located in Meadville, Pennsylvania. The hospital continually works to meet the community’s needs by maintaining up-to-date and state-of-the-art facilities. It is a leader in healthcare in northwestern Pennsylvania, with the newest technology, including the latest generation of ultrasound, CT and MRI technology. Its medical staff of more than 100 consists of 37 medical/surgical specialties, with an extensive primary care foundation.
Allegheny Health Network (AHN)
OC Reilly healthcare supply chain consulting enables major health system in Pennsylvania to achieve ongoing seven-figure-plus savings by establishing and implementing a comprehensive supply chain management system.
AT A GLANCE:
Customer: Allegheny Health Network (AHN), Pittsburgh, PA
Market: Healthcare
Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation, this program provides the best, most comprehensive set of products, services, and professional resources available to healthcare providers today.
Contact: William J. O’Connor, President, OC Reilly Inc., wjo@ocreilly.com
“Achieving peak cost-efficiency in a systemic, orderly, sustainable manner from the launch of AHN – and even prior to launch – became an imperative for us. We knew that the proven, longstanding legacy of supply chain expertise represented by Bill O’Connor and his team at OC Reilly offered the most reliable option. That decision has been confirmed many times over.” – John Paul, Chief Executive Officer, AHN (Retired)
Background:
AHN is an integrated health system dedicated to raising patient experiences while lowering the cost of healthcare in communities across 29 Pennsylvania counties and portions of New York, Ohio, and West Virginia.
Challenge:
AHN was formed in 2013 as a coordinated health system, offering an alternate and competitive option for patients and other healthcare consumers primarily in the greater Western Pennsylvania region. As a newly formed group of healthcare facilities and offices, coordinated under insurance provider Highmark Health, AHN faced considerable issues in streamlining operations, controlling costs, and overall supply chain management.
Solution:
Operating from a platform of “firm, fair, and aggressive” support to AHN, OC Reilly performed extensive research and developed a comprehensive supply chain program and process. Key areas of concentration and focus include: more carefully documenting and managing patient-related costs; renegotiating prices and contractual terms with suppliers; and installing a standard process regarding spending decisions. OC Reilly’s proprietary approaches to MEM™ and Physician Preference Items remain critical factors for AHN. OC Reilly also helped to develop and implement Provider Supply Chain Partners, a standalone AHN resource to acquire products and services through the economic leverage provided by aggregating spend, and implementing high-commitment, high-compliance, and standardization programs. OC Reilly’s Logistics Team conceived and helped to develop a Distribution Center that today affords AHN lower-cost access to products held locally.
Results:
By following the OC Reilly recommendations, AHN realized seven-figure-plus savings within the first year of operation, solely from “firm, fair, and aggressive” supply chain management. This level of savings has been maintained every year since.
About AHN:
Allegheny Health Network is a unified system dedicated to providing affordable, exceptional care to people in its communities. Its patient-centered approach to care means a greater focus on coordinated health and wellness services, as well as being accountable and responsible to patients from start to finish. AHN comprises eight hospitals with more than 2,000 beds, six surgery centers, 2,800 aligned medical professionals, and 17,500 total employees.