AllSpire Health Partners Forms Group Purchasing Organization to Manage Expenses

AllSpire Health Partners recently announced the formation of a group purchasing organization (GPO) by six of its health systems.

The new entity, AllSpire Health GPO, LLC, will help manage expenses by aggregating purchasing volumes, streamlining supplier negotiations and implementing efficiencies across the supply chain. The goal is to enhance strategic sourcing to drive economic improvements and use data management to identify clinical optimization and revenue opportunities, while maintaining access to quality products and services needed by providers and their patients.

Participating health systems in the AllSpire Health GPO include:

· Atlantic Health System (Morristown)

· Hackensack University Health Network (Hackensack)

· Lehigh Valley Health Network (Allentown, Pa.)

· Meridian Health (Neptune)

· Reading Health System (Reading, Pa.)

· WellSpan Health (York, Pa.)

“When we formed AllSpire Health Partners, the goal was to identify and develop clinical improvements and business initiatives that would improve the performance of our members,” said Brian A. Nester, DO, MBA, FACOEP, chair of the AllSpire Health Partners Executive Committee, and president and chief executive officer of Lehigh Valley Health Network. “The launch of the AllSpire Health GPO is the exciting culmination of hard work by our members and signifies the strength of the AllSpire Health Partners. This work demonstrates how AllSpire can bring value to our members and our communities.”

The AllSpire Health GPO has signed an exclusive agreement with a national GPO provider, HealthTrust, based in Brentwood, Tenn. The foundation of the HealthTrust compliance-driven model is a patient-focused mission, led by experienced clinical leaders and member-led advisory boards that conduct a rigorous product review and sourcing approval process. Each participant in the AllSpire Health GPO will become a member of HealthTrust, with full access to its extensive contract portfolio.

AllSpire Health Partners was created in 2013 to implement the “Triple Aim” which, as defined by the Institute for Healthcare Improvement, consists of improving the experience for the patient, improving the health of the population and creating more affordable health care. This is in direct response to the shift from fee-for-service medicine to a value-based model of healthcare delivery.

The combined intellectual assets of AllSpire Health Partners are expected to elevate quality, reduce care costs and facilitate the shift to a regional population health focus. Provider cost pressures continue to intensify, making it more critical than ever to lower expenses and improve outcomes.

Governance for the AllSpire Health GPO is provided by a board consisting of one senior executive representative from each member organization. Its operating committee is comprised of supply chain leaders from each organization. The GPO will be headquartered in the Lehigh Valley region of Pennsylvania and will be operational in the third quarter of 2016.