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[June 29, 2005]

Memorial Hospital, York, PA, Cuts Costs by $800,000 Through Supply Chain Improvement Collaborative

YORK, Pa. --(Business Wire)-- June 29, 2005 -- Memorial Hospital, a 100-bed facility in York, PA, has identified savings of more than $800,000 after completing a nine-month supply chain improvement collaborative project sponsored by Premier Inc.

Memorial Hospital is a first time participant in the four-year-old Supply Chain Collaborative Breakthrough Series (SCCBTS), an initiative available to members of Premier, Inc., an alliance of 1,500 hospitals and health systems. The hospital participated in the perioperative focus of the program, while monitoring the orthopedic focus.

The hospital team was able to achieve more than $800,000 in savings through contract negotiations and redesigned processes, while also establishing improved relationships with their physicians. The organization now has the physician backing it needs to make changes and negotiate with vendors successfully.

The Collaborative brings together Premier members who share a commitment to significant, rapid changes that produce measurable results in supply chain and high-profile physician preference areas. Participants pledge to implement changes in a nine-month period that will significantly improve operations and potentially eliminate millions of dollars in supply-related expenses. Memorial Hospital accesses Premier's resources through an affiliation with Bon Secours Health System, a Premier shareholder.

Memorial Hospital CFO Richard Imbimbo was an integral part of the hospital's multi-disciplinary team, which was led by Phil Schmidt, Contract Coordinator. Memorial Hospital Vice President of Materials Management John DeHaas also participated, along with many other key personnel in patient services, reimbursement, and patient quality. The team set a goal of $250,000 in savings, which they far exceeded.

The hospital has renegotiated contracts with its two main orthopedic companies for a significant part of its savings. In addition, the hospital hired an inventory control specialist for the OR, based on another suggestion that was made at the SCCTBS learning sessions. The goal is to assist caregivers in being more effective and efficient in patient care, and less involved in managing supplies.

The exposure to other Premier hospitals and the opportunity to share ideas has been valuable to all the team members, according to Mr. Schmidt.

"We looked at everything that came up in the learning sessions and phone calls," he said. "As a result, our savings were found across a broad range of issues."

For example, the hospital considered tubes for ventilator patients that would reduce the incidence of pneumonia and lower the length of stay for those patients. The team will continue working together and meeting on a regular basis as a way to maintain their momentum.

About Memorial Hospital

Memorial Hospital, a subsidiary of Memorial Health Systems, is a premier medical center striving to enhance the health and well being of the York, PA community. Its philosophy has remained the same since its inception in 1945: devotion to personalized and quality health care. The Memorial Family of Health Services includes Memorial Hospital, Greenbriar Medical Center, HomeCare of York, Industrial Resource Center, Memorial Primary Care, MRI of York, Surgical Center of York, Memorial Behavioral Health, White Rose Home Health and White Rose Hospice. Memorial Hospital was proud to be named one of the 100 Best Places to Work in PA for the third year in a row.

About Premier

Premier, Inc. is a healthcare alliance entirely owned by more than 200 of the nation's leading hospital and healthcare systems. These systems operate or are affiliated with nearly 1,500 hospital facilities and hundreds of other healthcare sites. Premier provides an array of resources supporting health services delivery including group purchasing for more than $21 billion annually in supplies and equipment. Premier is committed to facilitating knowledge transfer among its participating members through services such as the annual Supply Chain Collaborative Breakthrough Series. Headquartered in San Diego, CA, Premier has offices in Chicago, IL; Charlotte, NC; and Washington, DC.

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