Four Washington Health Systems Consolidate Supply Chain Operations Through Single Entity

Four Washington state health systems have united to form the Distribution Operations Center to consolidate their supply-chain support and distribution services, according to a news release by VHA, a group purchasing network for non-profit healthcare organizations of which the four systems are members.

The four health systems participating include are Central Washington Hospital in Wenatchee; Multicare Health System in Tacoma; Providence Health and Services in Renton; and Swedish Medical Center in Seattle.

Acting as a single entity, the new consolidated service center will allow its members to purchase services and supplies through VHA and VHA's contracting company, Novation, leverage a variety of operational and logistics initiatives to gain better control over their supply chain activities and drive a higher level of overall operational efficiency. Approximately 40 employees will support the operations center in a new facility in Lacey, Wash.

"Despite the financial pressures imposed on our hospitals from dwindling reimbursements, a lagging economy and increased costs, our hospitals collectively strive to deliver high-quality care to the patients in our community," Keith Howells, general manager, Distribution Operations Center, said in the release. "DOC will provide the efficiencies and cost-savings that will enable us to continue to realize that goal."

Selected representatives from the participating owner hospitals serve on DOC's oversight committee to ensure that all purchasing decisions are guided by member clinical and operational priorities.

Read the release on the Distributions Operations Center.

Read more coverage on VHA:

- 8 Largest Group Purchasing Organizations for Hospitals

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