Chicago-based CommonSpirit Health is moving to one group purchasing organization in an effort to better integrate supply chain operations at its 137 hospitals and 700 other care sites.
CommonSpirit Health was formed last February through the merger of San Francisco-based Dignity Health and Englewood, Colo.-based Catholic Health Initiatives.
The merged entity selected Premier as its GPO in an effort to generate supply chain efficiencies that cut costs and improve quality.
"We have made great strides to create a future-forward organization that is improving the health of the communities we serve across 21 states. This selection is a key milestone in the progress we have made to become one health system over the past year," said Daniel Morissette, senior executive vice president and CFO of CommonSpirit Health.
Premier said using one GPO will help integrate clinical utilization data and CommonSpirit Health's supply, pharmacy and purchased services spend to generate costs savings and boost quality.
"Change is necessary to enable the mission via growth, especially in the context of merging organizations leveraging scale, efficiencies and strategy to drive and sustain financial and operational success," said Michael Alkire, president of Premier.
Before the merger, Dignity Health typically used HealthTrust Purchasing Group and Dignity used Premier.
Access the full news release here.