Intermountain Healthcare has released news of how its Supply Chain and Musculoskeletal Clinical Program teamed up with surgeons last year to help reduce $3.6 million on supply costs intended to help lower patients’ costs. The organization explained that while the reduced cost not only saves patients money up front, the goal is that savings can be passed on to patients through lower insurance premiums and reduced prices in other areas of medicine.
“Some of the prices we negotiated were 40 percent lower than our previous prices,” said Casey Leavitt, executive clinical director of the Intermountain Musculoskeletal Clinical Program in the statement. “For example, if a patient with a fracture uses one of our on-contract lower cost devices, that could mean a savings to the patient of more than $1,000.”
Leaders of Intermountain’s Musculoskeletal Clinical Program, and Intermountain Supply Chain said one of the biggest keys to the success of these price reductions, were getting surgeons involved in the process.
“Knowing that the savings would be going back to patients really helped motivate the surgeons to participate,” added Nate Momberger, MD, associate medical director for total joint replacement for Intermountain and orthopedic surgeon. “We want to help our patients save money, so adding that financial incentive is a big motivator.”
Leavitt said that while similar efforts to reduce costs in the past were met with limited success. Involving physicians in the process and asking them to help make decisions, made the difference. “We asked the surgeons that if a supplier isn’t willing to meet our capped price, are they willing to back us up and tell the supplier they’re out of the system, and they said absolutely,” said Leavitt. “We even had surgeons calling the reps and suppliers to say, “Hey, we’re serious. If you don’t come to the table with this discount and everyone else does, I won’t be able to use your products anymore.”
As cost becomes a bigger factor in how patients choose a healthcare facility, Intermountain said keeping the price of supplies in check is vital and that value-based care is a major focus of Intermountain in every aspect of the services it provides.
Leaders in Intermountain’s Musculoskeletal Clinical Program are now trying similar cost-cutting methods for total shoulder replacements and they’ve already surpassed their 2019 savings goal and are now looking at implementing the program for other procedures.
