Project Description

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Supply Chain Optimization

The Problem

Without the support of a well-planned, detailed, change management strategy and comprehensive analytics, business and revenue transformation initiatives can bring many unwanted challenges. Our client engaged Catalyst to develop an approach, methodology and implementation plan that would align and engage their organization in achieving a margin improvement and cost reduction plan of 15%.

The Approach

Working with hospital leadership, Catalyst identified opportunities to not only enhance business and revenue capabilities, but reduce significant direct and indirect cost. Catalyst developed a comprehensive implementation plan to reduce resource cost, streamline internal distribution and address purchased services opportunities. Throughout the process, our visualization and analytical capability was used to support implementation and measure long term sustainability.

The Solution

A multi-dimensional strategy was developed to rectify charge master, item master and IT discrepancies. Vendor and payer contract analysis identified multiple opportunities to support vendor re-negotiations and normalize price parity.

Project Details




Multi-Hospital Health System


Supply and Logistics Optimization

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Project Outcomes

$5.6M reduction in physician preference inventory.

Dashboards and monitoring implemented to track results.

Contract negotiations averaged 16% for a net impact of $4.2M in cost reductions.

Purchased services contract re-negotiations yielded $2.7M in reductions.

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