Transcript HealthTrust Europe Overview

HealthTrust
Europe
Purchasing Power for Healthcare
Fiona Chew – Director of Account Management
International Innovation Case Study – Entry of a
US GPO into UK Healthcare Purchasing
US GPO Landscape
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Group Purchasing Organisations – aggregate purchasing
volumes of US healthcare organisations to utilise leverage
and negotiate effective contracts.
First US GPO created 1910. Numbers grew slowly until last
quarter of 20th C.
Nearly every hospital facility in the US now uses the
services of at least one GPO.
Period of consolidation in the market.
Some “shopping around” by facilities to find the best GPO
Top 4 GPOs account for $155bn purchasing spend.
Saturated market – further consolidation and vertical
integration expected.
HealthTrust Purchasing Group (HPG)
• Established in 1999
• Commonly listed as 4th largest US GPO (following
MedAssets, Premier & Novation)
• Headquartered in Brentwood, Tennessee (Nashville)
HealthTrust Purchasing Group (HPG)
• Manage over 1200+ supplier agreements representing
over $21B of annual contracting volume
• Serves as the exclusive Group Purchasing Organization
for over 4000 USA healthcare facilities
• Approximately 25% (1400) of the hospitals in the USA
utilize HealthTrust as their sole Group Purchasing
Organization
• Broad contract portfolio with “One Price For All”
philosophy
• Customer focused - 99% customer retention rate
• 7-12% price advantage over other GPOs
• Acquisition of Consorta GPO - 2011
Horizontal Integration: HPG
Innovation Enters the UK
• 1st April 2011 – HPG established “HealthTrust Europe”
• Formed via the purchase of Healthcare Purchasing
Consortium – an NHS collaborative procurement hub.
• Jointly owned by HPG and HCA International
• HCA International - owner of 6 private hospitals in the
UK e.g. London Bridge Hospital and 3 joint ventures
with the NHS e.g. Harley Street at UCLH
• UK – strategic market entry
HealthTrust Europe
Our Mission
“HealthTrust Europe is committed to providing best value, significant
savings and supply chain expertise to the health care sector across
the broadest range of products and services. HealthTrust Europe will
achieve its vision of becoming Europe’s number one group purchasing
organisation by improving services to patients and the care they
receive through best procurement solutions”.
Our Vision
“To be the leading European group purchasing organisation: delivering
excellence to our members through dynamic and efficient procurement
and commercial solutions”.
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Represent NHS Trusts nationwide
Contract in medical, pharmacy and corporate areas for our
members
HPG Worldwide Locations
We are global in scope
– Headquarters for HCA, Parallon and HealthTrust
Purchasing Group are based in the U.S.
– HealthTrust Global Sourcing office based in
Shanghai, China
– HealthTrust Europe based in Birmingham, with
offices in London
Member Alignment &
Vendor Administration Fees
• Members are expected to maintain a highly committed
relationship with HTE by avoiding:
– Self contracting efforts
– Use of non-HTE services when service is available from
HTE
– Use of other group purchasing organizations
• US GPO model is funded on basis of vendor admin fees
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Small percentage fee paid by contracted vendors
Permitted by US “Safe Harbor” regulations
Admin fee is paid when a member uses the contract
Surpluses are repaid to members
Same model applied to creation of HealthTrust Europe
Enabled lower member “subscription” fees
• Innovative model = challenge to suppliers = pockets of
resistance
European Expansion
• HealthTrust Europe = Strategic launch point for HPG into
Europe
• Germany – strong existing GPO landscape
• Poland – no collaborative purchasing
• Challenge – local infrastructure, language barriers
Vertical Integration - Parallon
Consultative Services
Analyze, assess need and provide solution sets
End-to-end Revenue Cycle
Improved financial performance, cash flow and efficiencies
Workforce
Strategic labor, staffing and recruiting
Healthcare Technology
Turnkey services, data warehousing and disaster recovery
Supply Chain
Procure to pay, including logistics
Group Purchasing
Immediate and sustainable procurement savings across
all product and service categories
Project Optimization
Activates strategies and provides best-in-class PM
support
Population Health Management
Physician affiliation structures, governance, management
structure and key processes to address shared risk
CoreTrust Europe
• Launched in 2006 in the U.S.
• Over 45 contract offerings in the U.S. and 6
offerings in Europe
• 210+ members – domestic and international
• $1 Billion in captured spend
CoreTrust Europe
CoreTrust Milestones:
– 2006: Partnered with Blackstone
– 2008: Partnered with KKR, Bain, Welsh-Carson & others
– 2009: Completed “refresh” in multiple strategic categories
– 2011: EU-based resources in the United Kingdom
– 2012: Use of CoreTrust Europe agreements in EMEA &
APAC
Membership Sample:
Thank-you for
listening
Fiona Chew
Director of Account Management
M: 07984 598 576
E: [email protected]