HANYS' Group Purchasing Services, Inc.

HANYS’ GPS

Your Guide to Great Savings!

HANYS’ GROUP PURCHASING SERVICES, INC. (HANYS’ GPS)

HANYS Solutions, Inc. is pleased to announce the creation of HANYS’ Group Purchasing Services, Inc. (HANYS’ GPS) as the vehicle to provide the GNYHA Services/Premier group purchasing program to HANYS members in New York State.

HANYS’ GPS offers access to quality medical supplies, food, equipment, and pharmaceuticals with excellent savings, thereby enhancing members’ operational efficiency in today’s challenging and competitive marketplace.

Participating hospitals will enjoy a wide range of choice in medical/surgical and pharmaceutical supplies, national pricing with state flexibility in contracting and pricing overseen by a committee representative of hospitals statewide, and the best values. In addition, HANYS’ GPS provides access to technology that gives hospitals true control over their spending and spending management.

The powerful relationship embodied in HANYS GPS significantly expands the opportunity for not-for-profit and public hospitals to obtain superior supplies at superb prices. Because it is offered through HANYS, which has more than 75 years of experience in understanding and serving New York hospitals, HANYS GPS is and will remain responsive to member needs as they arise.

What are the main advantages for hospitals to buy through HANYS’ GPS?

Participating hospitals will have access to very low national pricing on medical/surgical and pharmaceutical contracts because Premier is able to aggregate the volume of purchases for more than 1,400 hospitals across the country and represents more than $17 billion in hospital purchasing volume. Premier also offers a comprehensive portfolio of multiple vendors within preference product categories.
Statewide flexibility in both pricing and contracting will enable hospitals to standardize certain product choices and qualify for even lower prices from a product manufacturer.
Participating hospitals will have access to unique, superior technology to give hospitals more control over their spending and spending management. Premier’s technology will give hospitals the following clear advantages:
- A “one-stop” system that gives users easy access to national, state, and local contracts—with correct current pricing—that can be updated into any materials management system.
- A three-way price match—among the contract, the purchase order, and supplier’s invoice—that allows hospitals to realize savings as soon as pricing changes.
- The ability to compare accurate local, state, and national contract options efficiently and quickly understand which contract is right for the hospital.
- An “analytics dashboard” or “hospital spend report” enabling hospitals to review their contract and non-contract spending trends in a very detailed manner, compare them to national and other benchmarks, and find accurate, instantaneous opportunities to reduce costs.
- Automation of requisitioning, ordering, and supplier response, ensuring more accurate product data, and providing hospitals with a measurable increase in productivity.
- Furthermore, HANYS’ GPS will vastly expand the number of hospitals that participate in the GNYHA Services/Premier group purchasing program—generating even greater purchasing volume and resulting in prices, products, and services never before enjoyed in New York.

Why the Premier National Program?

HANYS’ GPS builds upon thorough and objective evaluations of national group purchasing organizations (GPOs) undertaken by GNYHA Services and HANYS in 2003-2004.

The GNYHA evaluation process was undertaken by three separate groups—Giuliani Partners, LLC, the consulting firm headed by former New York City Mayor Rudolph W. Giuliani; a special committee composed of New York/New Jersey area hospital executives (whose institutions purchased from a number of different group purchasing groups); and GNYHA Services management. They used the following criteria to analyze and evaluate the competing GPO proposals:

Ability to get the lowest prices for the products used most often by members;
Ability to ensure that the highest-quality products are on contract;
Willingness and ability to obtain enhanced pricing and differentiated value through state contracting;
Ability to provide the best technology, including real-time pricing information to hospitals to ensure they are billed for and paying the most up-to-date contract price; provide an online catalog; and provide a match between the contracted price and the purchase order price at the time of order;
Ability to quickly add the newest and best products to the portfolio;
Overall financial strength; and
Commitment to a strong code of conduct.

All three independent evaluators made separate recommendations but reached the same conclusion—to select Premier.

In addition and independently, HANYS reviewed the offerings of national GPOs and concluded that the GNYHA Services/Premier alliance would provide the best services at the best prices. HANYS Services’ unique collaboration with GNYHA Services leverages HANYS’ detailed knowledge of member needs into increased member value and decreased member costs.

What Does State Flexibility Mean?

Premier’s excellent national contracts are a starting point, not an end point. HANYS’ GPS also allows a new type of flexibility in both pricing and contracting. For example, the new contracting flexibility allows GNYHA Services to contract independently with vendors if Premier does not have a contract for a specific product that participating hospitals want to purchase. And, on the pricing side, the new relationship enables hospitals to achieve regional enhancements to the Premier contracts—enhancements that recognize the significant group efficiencies that our state can generate.

This flexibility will help create more choices for hospitals and more advantageous pricing from suppliers.

Maryjane Wurth,

Chief Executive Officer

(518) 431-7634

mwurth@hanys.org

Michael Ilnicki

Vice President and Chief of Operations

(518) 431-7829

milnicki@hanys.org

HANYS Solutions, Inc.

One Empire Drive

Rensselaer, NY 12144