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GPO Due Diligence Update
October 30, 2011

Posted by chcablogadmin in : Group Purchasing

The GPO Due Diligence Task Force, chaired by Ben Melson, CFO, Texas Children’s Hospital, has evaluated RFP responses from major national GPOs.  The solicited GPOs were Amerinet, HealthTrust Purchasing Group (HPG), MedAssets, Novation and Premier.  With the assistance of Dan May of CSC, the Task Force is analyzing the proposals on the basis of their respective financial models, pediatric portfolio and strategic focus, ancillary value-add services, and other key attributes.  The Task Force is focusing analytics on a traditional GPO partnership model, with an at-risk savings option for those Owners that desire a high-compliance model.  The Task Force met with the GPOs in Dallas, Oct. 24-25, to discuss their proposals and continue the due diligence process.

Ben Melson and Dan May will present an update via a webcast scheduled for Fri., Nov. 4. They will share information on the GPO presentations to the Task Force with key observations, a summary of proposed deal models with associated financial projections, and Advisory Committee and Board input and feedback. There will be time for discussion and audience participation. (See below for time and links to participate.)

The Task Force will visit GPO corporate offices between mid-November and early December, and begin final deliberations to select a recommended partner for the CHCA Board to consider at their February meeting. 

Note that, although the current agreement with Premier runs through the end of 2012, CHCA may exit that agreement and implement the new agreement (assumed to provide greater value) earlier in 2012, based on the final decisions of the Task Force, Advisory Committee and Board.

Please direct any questions that you may have to Dan May, CSC (678-576-0408, dmay20@csc.com) or Jeff Primovic, CHCA (913-981-4130, jeff.primovic@chca.com).

Webcast:      GPO Due Diligence 11.04.11
Date:                Friday, November 4, 2011
Time:               11:00am PT|12:00pm MT|1:00pm CT|2:00pm ET (60 minutes)
Audio:             800-289-5126 call-in | 616343 participant passcode
Web Link       
Please RSVP by 11/02


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