Good Samaritan is a 408-bed hospital and academic medical center in Los Angeles with nearly 95,000 outpatient visits per year. The hospital has more than 1,500 employees and has 600 physicians.
The Challenge
Good Samaritan Hospital set a goal of becoming the lowest-cost provider in its market while maintaining its ability to deliver outstanding diagnostic, surgical, and therapeutic care. Leadership sought to optimize supply chain efficiency and to reduce overhead by eliminating the need for an off-site warehouse.
The Solution
Huron Healthcare worked collaboratively with hospital leadership and staff to implement non-labor cost savings through contract negotiations, utilization practices, and standardization. Huron also led a redesign of the entire supply chain process, improving workflow, technology, and efficiency, allowing Good Samaritan to sustain bottom-line benefits; including: Reducing Supply Costs: Huron worked with Good Samaritan to further centralize purchasing, leverage volume, and renegotiate contracts; Transforming the Supply Chain: Huron redesigned core supply chain processes and workflow to be more efficient, transparent, and accurate; Enhancing Technology: Huron improved utilization of Good Samaritan's Materials Management Information System to increase efficiency, eliminate redundancies, and improve turnaround time; Reducing Overhead Costs: Huron helped move to a just-in-time supply replenishment program, eliminating the need for an off-site warehouse.
The Result
Huron helped Good Samaritan realize $7.8 million in recurring cost savings—140 percent of target savings; eliminated need for off-site warehouse—providing $168,000 of recurring savings; recurring labor savings of $70,000; one-time savings of $200,000 from inventory reduction and supply chain transformation to ensure sustainability.
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