Backed by some of the largest health systems in the United States, this innovative new company utilizes hundreds of thousands of data points to identify and secure savings for categories not directly related to patient care
NASHVILLE, Tenn.–(BUSINESS WIRE)–#gpo—HealthTrust, a leading performance improvement company for healthcare, and Valify, a technology company focused on helping hospitals reduce purchased services expenses, today announced the launch of Valify Solutions Group (VSG,) the first purchased services group purchasing organization (GPO) for healthcare. The new GPO leverages the largest data-driven market intelligence from $460 billion in categorized purchasing volume to generate savings for its members.
Powered by the industry’s leading categorization technology, Valify Solutions Group categorizes non-labor spend and compares it against a comprehensive contract portfolio to identify immediate savings opportunities. Robust algorithms benchmark the categorized data against the industry’s largest database of information from over 1,500 hospitals to help find the next level of savings opportunities for members.
“Participation from leading health systems makes Valify Solutions Group a very powerful ally in accelerating cost reduction strategies,” said Ed Jones, CEO of HealthTrust. “Based on the growing demand in managing purchased services spend, we are excited to announce the launch of a unique solution for categories that are often overlooked or challenging to address.”
There is no cost to join the purchased services GPO and hospitals can selectively choose from more than 250 contracts, representing more than $8 billion in spend. Membership is non-exclusive, allowing any hospital to participate regardless of its GPO affiliation. VSG combines Valify’s marketing-leading technology with HealthTrust’s best-in-class contract portfolio, and wraps around advisory services to create the industry’s first true end-to-end purchased services program, inclusive of sourcing, benchmarking, contract management, negotiations and contracting.
Annual purchased services spend for U.S. hospitals is estimated to be more than $300 billion and is difficult to manage due to the complexity of unique categories, decentralized decision-making and lack of operational metrics. Chris Heckler, CEO of Valify Solutions Group stated, “In the post-COVID era, hospitals need to aggressively identify ways to reduce costs. Whereas purchased services can comprise up to 45 percent of a hospital’s non-labor operating expense, our platform and operator expertise are designed to enable hospitals to identify millions of dollars of savings and accelerate cost improvements across hundreds of categories.”
HealthTrust (Healthtrust Purchasing Group, L.P.) is committed to strengthening provider performance and clinical excellence through an aligned membership model and the delivery of total spend management advisory solutions that leverage our operator experience, scale and innovation. Headquartered in Nashville, Tennessee, HealthTrust (www.healthtrustpg.com) serves over 1,600 hospitals and health systems, and more than 43,000 other member locations including ambulatory surgery centers, physician practices, long-term care and alternate care sites.
About Valify Solutions Group
Valify Solutions Group is a tech-enabled purchased services group purchasing organization leveraging data-driven market intelligence and $8 billion in contracted spend to generate savings on purchased services in healthcare. Valify Solutions Group provides a comprehensive pre-negotiated purchased services contract portfolio; a web-based technology platform which uses proprietary machine learning algorithms to cleanse spend data, identify savings opportunities, and benchmark against a database of over $460 billion in spend. Valify Solutions Group provides expert benchmarking analysis, market share insights and prebuilt category-specific RFP templates. Leveraging our extensive operator knowledge, based on years of supply chain experience, the Valify Solutions Group team manages hundreds of individual contracts and negotiates custom local sourcing events to enhance members’ bottom line.
Original Release: https://healthtrustpg.com/news-events/