The Ohio State University Wexner Medical Center is looking to cut $40 million from its annual cost of supplies and services by asking hundreds of its largest vendors to give a 20 percent discount, according to The Columbus Dispatch.
The Columbus-based medical center has already asked 300 vendors to make price cuts, according to the report. Peter Geier, CEO of the university's health system, asked suppliers for half the price cut by Nov. 15, 2014 and the remaining 10 percent cut by June 30, 2015 the report reads.
The report references a letter from Mr. Geier, in which he told suppliers that they will look into contracts with other vendors if suppliers aren't able to achieve the expectations.
Mr. Geier told The Columbus Dispatch that as of Sunday, Wexner had secured at least $20 million in savings, an achievement primarily attributed to its discounts request.
The medical center spent about $700 million on supplies last fiscal year, which ended June 30, 2014, and has 3,400 suppliers, according to the report.
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