Overview

At Vizient, we connect data and experience to provide unique insights that help members take their cost-saving efforts to the next level. Taking advantage of our unmatched data and analytics and our advisory services, INTEGRIS Health saved nearly $15 million in only 12 months.

Member profile

INTEGRIS Health is the largest health care system in Oklahoma and boasts world-class physicians and facilities throughout the state, including hospitals, rehabilitation centers, clinics, mental health facilities, independent living centers, and home health agencies. Its headquarters are on the campus of INTEGRIS Baptist Medical Center in Oklahoma City.

Challenge

INTEGRIS Health had already made significant gains in improving its supply chain operations and reducing costs for purchased supplies and services. But after several years, leaders at INTEGRIS Health realized that to take their efforts further, they needed help. That’s when they called on Vizient.

"What we saw from Vizient was a true partner coming to the table."

Leaders at INTEGRIS Health made it clear that care quality and patient safety were nonnegotiable factors in assessing cost-reduction opportunities. Keeping clinical performance high meant gaining the support of INTEGRIS Health’s physicians, so Vizient worked to ensure that the new processes integrated the physicians into every decision related to clinical costs.

Solution

Vizient and INTEGRIS Health began a nonsalary cost reduction engagement that focused on process redesign and dedication to Clinical Quality Value Analysis™. The goal of the engagement was not only to find new ways to lower costs, but also, and most importantly, to maintain high-quality patient care.

Vizient’s initial assessment of INTEGRIS Health’s system data uncovered more than 300 potential cost-reduction opportunities in areas ranging from cardiology to housekeeping. With guidance from Vizient’s experienced consultants, INTEGRIS Health formed teams to tackle the opportunities.

One of the most important tools Vizient consultants brought was a set of criteria for differentiating between “must have” and “nice to have,” which helped guide the teams as they made decisions.

Results

In only 12 months, Vizient helped INTEGRIS Health realize savings of nearly $15 million, far exceeding its original goal of $12.5 million. And though the physicians were initially skeptical, their support increased as they became more involved in the process. “The best thing we’ve seen so far is that we’ve had physicians come to our senior leadership meetings and hold us accountable for not following the process,” said Micah Parker, system director of Clinical Quality Value Analysis. Overall the process has not only led to significant savings, but also strengthened the organization’s relationships with its physicians.

Savings Strategy Implemented Savings Conversion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,641,796
Logistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91,690
Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,007,611
Standardization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$332,357
Utilization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,684,147
TOTAL $14,575,601

Hospital Department Implemented Savings Nonclinical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,572,756
Medical/surgical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,489,211
IT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$553,405
Pharmacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,350,111
Cardiology/radiology. . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,306,101
Orthopedics/neurology. . . . . . . . . . . . . . . . . . . . . . . . . . $1,358,260
Surgery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,127,757
TOTAL $14,757,601

Building partnerships

A shining example of the success of the engagement is in the area of cardiac rhythm management (CRM), which saw more than $800,000 in savings. Suppliers of CRM equipment met with INTEGRIS Health’s cardiologists to review quality information on their products. The physicians were then asked, via survey, to rank the companies. This feedback was evaluated along with the information on quality and costs to make a final decision.

“The biggest challenge we faced was figuring out a way to integrate with the hospital system while maintaining our autonomy,” said George Chrysant, MD. “Once we sorted that out, we had a better understanding of the hospital system’s need to create savings and they had a better understanding of our need to have a say in what products we use.”

Connecting data and leadership

Another initiative reduced overutilization of nitric oxide. Vizient’s analysis of the data revealed the opportunity, and our understanding of leading practices in this area helped guide INTEGRIS Health in recapturing dollars. The result? A nearly 50% reduction in cost.

The success of INTEGRIS Health’s collaboration with Vizient has given its leaders confidence for the future. On that basis, they’ve begun a second year of engagement with Vizient, continuing to focus on providing excellent patient care while meeting cost-savings objectives.

Vizient consultants possessed the expertise we needed. They had gone down this path before with other organizations and had been successful.
Bruce LawrencePresident and CEO, INTEGRIS Health