Three Large Not-for-profit Healthcare Systems Form New Supply Network
November 17, 2011
New venture expected to reduce supply costs and identify best practices for supply utilization
NORFOLK, VA – November 17, 2011 – MedStar Health, Novant Health and SentaraHealthcare have agreed to work together to reduce their supply expensesand improve operational performance. The newly formed MNS Supply ChainNetwork, LLC, as it has been named, represents more than $3 billion in annual purchases of supplies and services. The network will work as asingle entity on identified contracting initiatives in order togenerate savings and supply chain efficiency. The Network hascontracted with VHA Inc., a national hospital alliance, to providenetwork support.
Novant Health is a $3.5 billion not-for-profit integrated system comprised of 13 hospitals in North Carolina, South Carolina and Virginia, 150 outpatient centers and a medical group consisting of 1,123 physicians in 360 clinic locations. Novant Health is the owner of the Upstate Carolina Medical Center in Gaffney.
TheMNS Network’s strategic alliance will create concrete avenues foreconomies of scale and help us to derive significant supply chainsavings, said Michael Curran, chairmanof the board of MNS Supply Chain Network and chief administrative andfinancial officer of MedStar Health. Our shared commitment to volumeaggregated contracting strategies will drive value for all theorganizations, their patients and communities.
The new network will be operational immediately and will be governed by senior executives from the participating members.
MedStar Health is a $4 billion not-for-profit, regional healthcare system with a network of ninehospitals, 20 health-related organizations and more than 100 care sitesacross Maryland and the Washington, D.C. region.
Sentara Healthcare is a $5 billion not-for-profit integrated health system, that operates more than 100 sites of care serving communities across Virginia and Northeastern North Carolina and is comprised of 10 acute care hospitals, a 3,680 provider medicalstaff and three medical groups with 618 providers, as well as a healthplan, serving more than 433,000 members in Virginia.
