Banner Health’s global sourcing partnership with ASP Global is a key component to value-derivation from hospital self-distribution programs.

An increasing number of hospital systems and IDN’s are successfully navigating the waters of self-distribution. Entering a world once only reserved for large distributors, Arizona-based Banner Health is one such example. Banner operates 29 acute care hospitals including three academic facilities and other related health entities and services in seven states serving over 300,000 members. The organization was named a Top 5 Large Health System three out of five years by Truven Analytics (formerly Thomson Reuters).

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Mike Halmrast, a 20 year veteran and Senior Director of Contracting of Banner Health, shared with us the organization’s approach to self-distribution now in what he describes as “phase 3.”

“We have been self-distributing to our Phoenix facilities for over 10 years,” Halmrast said. “Our Vice President of Supply Chain had successfully accomplished the task for his previous organization. We were confident improving the proximity to manufacturers and decreasing the links in the supply chain would result in meaningful cost savings with no negative side effects, and in some cases improvements in product quality and utility.”

In 2014, Banner Health was recognized as having one of the top-25 most successful supply chains in healthcare by Gartner, the world’s leading information technology research and advisory company.

At the 30,000 foot level, the phases include taking ownership, ERP and global sourcing implementation and value-based customization. The results: 30 – 40 percent savings and comparable unadjusted fill rate improvements from 93 percent to 99 percent, a huge improvement that prevented over 9,000 ‘stock-outs’ per year thanks to Banner’s global sourcing partnership with ASP Global.

becker's hospital review

Get the details as contributed by ASP Global CEO Lorne Tritt in the supply chain section of Becker’s Hospital Review.

If you are a large hospital or health system, learn how global sourcing with ASP Global is a high-value, must have element of your self-distribution program or plans.

Contact or call (404) 696-6999.