News | Radiology Business | January 17, 2017

ECRI Institute Announces New Mergers and Acquisitions Service

New service helps merging healthcare organizations realize immediate and long-term savings on supply-side and medical capital expenses

ECRI Institute, mergers and acquisitions service

January 17, 2017 — ECRI Institute announced a new mergers and acquisitions service that empowers new hospital alliances to control their spending and plan for the future by eliminating waste and redundancy in medical-surgical supplies and capital medical equipment.

The No. 1 reason hospital mergers or acquisitions do not succeed, according to ECRI Institute, is failure to integrate. A precursor to any successful integration is a systematic review of contract portfolios and equipment inventories.

Unfortunately, many hospitals do not have the resources to perform a complete assessment in these areas — essentially risking millions of dollars in potential savings and inadvertently creating new safety and quality risks.

For supplies, ECRI Institute identifies the greatest opportunities for savings by negotiating to the lowest price available. For example, by analyzing purchase order histories and pricing data for merging organizations, ECRI Institute's price parity reports identified $3.2 million in potential savings for one transaction, and nearly $1.3 million for another.

ECRI experts highlight product categories with significant overlap and compare them to the categories that will require product conversion.

"With supply costs set to eclipse labor costs in just a few years, hospitals can use ECRI Institute's independent benchmarking capabilities and market analytics to negotiate the best pricing and deepest discounts from their suppliers," said Timothy Browne, director of ECRI Institute's PriceGuide service.

For capital equipment, the new service reduces expenditures by helping newly merged health systems develop a data-driven predictive replacement plan for equipment acquisition, replacement and redeployment.

Based on clinical, safety, operational and obsolescence criteria, the plan focuses on maximizing use of existing medical equipment and expanding capital availability in key technology areas such as radiology, surgery and cardiology.

In the case of one hospital system that was preparing to put itself on the market, ECRI Institute uncovered $6.7 million of potential capital savings from the redeployment, replacement and retirement of key technologies over a 12-month period.

For more information: www.ecri.org

Related Content

Image by rawpixel from Pixabay

Image by rawpixel from Pixabay 

Feature | Radiology Business | July 18, 2019 | By Stefanie Manack and Judy Zakutny
Approximately 30 percent of a hospital or health system’s profit comes from imaging according, to...
CMS Proposes New Alternative Payment Model for Radiation Oncology
News | Radiation Oncology | July 17, 2019
The Centers for Medicare and Medicaid Services (CMS) issued a proposal for an advanced alternative payment model (APM)...
Routine scan of abdomen pelvis taken with the UW-Madison’s Revolution 256 CT scanner using the FDA-cleared reconstruction algorithm, called TrueFidelity.

Routine scan of abdomen pelvis taken with the UW-Madison’s Revolution 256 CT scanner using the FDA-cleared reconstruction algorithm, called TrueFidelity. UW-Madison was the first site in the U.S. to get this technology. Its use is now being integrated into UW CT protocols. Image courtesy of Timothy P. Szczykutowicz

Feature | Computed Tomography (CT) | July 12, 2019 | By Greg Freiherr
When providers develop their own imaging protocols, they are wasting time and money, according to...

Image courtesy of GE Healthcare

Feature | Radiology Business | July 03, 2019 | By Jeffrey Hoffmeister, M.D.
Burnout in the medical profession is not uncommon, particularly as clinicians have become more overwhelmed by growing

stock.adobe.com / netsign

Feature | Radiology Business | July 02, 2019 | By William W. Pinsky, M.D., FAAP, FACC, and Mandeep R. Mehra, M.D., MBBS, MSc, FRCP
As we strive to process today’s successive news cycles involving negative reports about immigration, it is easy for m
News | Radiology Business | June 27, 2019
Blue Earth Diagnostics, a molecular imaging diagnostics company, announced that a definitive agreement has been signe
The Current Direction of Healthcare Reform Explained by CMS Administrator Seema Verma
News | Radiology Business | June 11, 2019
June 11, 2019 — Centers for Medicare and Medicaid Services (CMS) Administrator Seema Verma addressed the American Med
ASTRO Applauds New Prior Authorization Legislation
News | Radiation Therapy | June 07, 2019
The American Society for Radiation Oncology (ASTRO) released a statement applauding Congress’s introduction of...