In fiscal 2021 Memorial Hospital at Gulfport (MHG) experienced a $64 million operating loss (as calculated by Fitch, including CARES Act funding in operations). Following the loss, MHG brought in an interim turnaround CFO and engaged Huron Consulting to help identify and validate revenue cycle and expense improvement initiatives, including charge capture and collections, labor and supplies cost reductions, and clinical and staff productivity.
One initiative includes Memorial Health System’s (Memorial) recently announced exclusive, multi-year group purchasing agreement with HealthTrust Performance Group for supply chain resiliency.
Memorial is jointly owned by the City of Gulfport and Harrison County. Its expansive footprint includes three hospital facilities, four outpatient surgery locations, outpatient diagnostic centers, and more than 110 Memorial Physician Clinics.
As a member of HealthTrust, Memorial joins an extensive, aligned network of the country’s leading hospitals and health systems. HealthTrust will serve as the IDN’s exclusive group purchasing organization (GPO), giving its providers access to a broad portfolio of supplies and services, and a fast track to savings from HealthTrust’s one-price-for-all contracting approach.
Throughout the relationship, Memorial teams will have access to comprehensive supply chain solutions, including spend analytics, custom sourcing, continuing education, and clinical integration services to advance performance in cost, quality and outcomes.
Last year, HealthTrust, announced that Hoag Memorial Hospital Presbyterian (Hoag) and its subsidiaries plan to convert to the HealthTrust GPO portfolio of contracts for products and services as well as utilize ancillary supply chain solutions effective December 1, 2021.
In addition, the companies planned to collaborate on dynamic improvement strategies addressing purchased services, facility and infrastructure operations and maintenance, capital equipment and construction/renovation projects.
Takeaway: HealthTrust’s aligned group purchasing model offers a comprehensive set of advisory services to help healthcare providers make the most of the company’s supply chain, workforce and clinical integration capabilities