The Colorado Hospital Association has signed an agreement with Alpharetta, Ga.-based MedAssets to create a statewide group purchasing and operational services program for its member hospitals.
Peter Freytag, senior vice president and chief financial officer for the association, said the program has the potential to save participating hospitals money on supply chain purchases and improve their operational efficiencies, as well as generate revenue for the statewide association, which represents 88 hospitals. Our hospitals arent in the position to (increase their financial support of) the association, so I had to come up a way to generate revenue; this agreement will help, Freytag said.
The for-profit deal, signed June 1, calls for MedAssets to negotiate supply chain contracts as well as provide operational services programs, such as clinical and revenue-cycle management. The association will earn a percentage off each contract signed between MedAssets and the hospitals. Freytag declined, however, to give details of the arrangement.
We have a revenue participation agreement, and we will get a small percentage when hospitals sign contracts for services, but we have no projection at this point in time (for potential earnings) because these are brand-new services that weve never offered, Freytag said.
The agreement makes the Colorado organization the most recent of a growing number of state hospital associations to re-enter the GPO arena following years of abandoning the industry to large national companies. -- by Shawn Rhea