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Guelph General Hospital's Materials Management Team secures $743,000 in savings

At Guelph General Hospital, the Materials Management team is leaving no stone unturned in helping the Hospital meet one of its strategic priorities - to sustain its financial health. At the same time, adding to the challenge is finding these savings and efficiencies without sacrificing the high quality of care for which the Hospital is known. That said, thanks to the team’s dedication, almost $743,000 in purchasing savings from April 1, 2015 to March 31, 2016.
Jeff Carter, Director of Materials Management (third from right), along with members of his team recently celebrated National Healthcare Supply Chain Week (click photo to enlarge).

Much of this success to can be attributed to working in collaboration, rather than in silos, says Jeff Carter, GGH’s Director of Materials Management.  “Collaborating with internal hospital departments as well as external partners is critical to increasing purchasing power to negotiate significant contract savings.”

Another significant contributor to this level of saving is the hospital-wide commitment to look at every single input and how the Hospital can be more efficient in its use, find a more cost effective alternative, or negotiate a lower contract.
 
Jeff gave some specific, recent examples to illustrate from where these savings are coming.
  • Renegotiated a contract for hip and knee implants that will result in up to $36,000 in savings per year over the next two years.
  • Negotiated a contract for contrast media used in the Diagnostic Imaging Department that resulted in about $25,000 in savings per year over the next 5 years.
  • Negotiated OR surgical gloves and warming blankets contracts that will result in $6,627 and $8,887 in savings per year over the next two and four years respectively.
  • Negotiated stationary and toner products contracts that resulted in over $50,000 in savings over the previous contract.
Jeff also credited Sue MacNeil, Director Food Services and Environmental Support, for leading a team to look more closely at how they use their linen supplies. Through changes they have implemented, $25,000 has been saved over the past six months.
 
With government funded hospital operating budgets getting leaner and leaner, efficient spending is an absolute must. The savings that the Materials Management team have achieved helps ensure that as much funding as possible is available to support patient care.
 
By striving to get the best deal, donations are also used most effectively, said Suzanne Bone, CEO of The Foundation of Guelph General Hospital. “When we purchased our MRI at the end of the MRI & More campaign, we were able to negotiate the lowest price ever seen for an MRI in Canada. This meant that donor dollars were stretched further.”
 
Each year, the first week of October is dedicated to acknowledging and celebrating healthcare supply chain professionals. Some of the best can be found at Guelph General Hospital.