Two local health care systems that compete for Louisville-area patients are joining forces to buy medical supplies and save money.
Officials at Baptist Health and Norton Healthcare say they were spurred in part by Obamacare and the changing health care marketplace.
“Increasingly, we are seeing partnerships like this among health care providers all across the country,” said Michael K. Reeves, system executive for supply chain services at Baptist. “The Affordable Care Act, health care reform overall and the constant pressure on health systems to do more with less without sacrificing quality have all resulted in providers being more creative to contain costs.”
The health care systems formed a joint purchasing arrangement, and Illinois-based Medline Industries, Inc. was awarded the contract following a request for proposals. Total spending for both organizations for items and services covered under the agreement is about $85 million a year.
Jim Graham, system director of purchasing for Norton, said the Norton and Baptist will “continue to maintain totally separate health service operations.”
Officials said early estimates of combined savings for both systems may be more than $15 million over the five-year contract — and patients will ultimately benefit from lower costs.
