InSRHN Membership Costs and Benefits

1. InSRHN Membership Costs and Benefits The Indiana Statewide Rural Health Network (InSRHN) will offer a membership fee of $5000 per year to become a full member of the network. This membership fee will provide access to all discounted pricing agreements with InSRHN, round table discussion groups and IRHA unlimited organizational member benefits.

2. InSRHN Membership Costs and Benefits Network member pricing discounts have the potential to provide all of the following benefits according to similar industry data: U.S. hospital and health system supply chain executives estimate that network purchasing can save their institutions an average 10.4 percent on supply costs. Smaller hospitals or hospital systems typically purchase 20 percent more supplies by collaborating with other hospitals versus a larger hospital system because of the cost savings. Purchasing as a network can help to create a "Wal-Mart effect" in the health care supply chain, which means the negotiated best price makes prices lower for other products. The Illinois Critical Access Network saved $100,000 per unit on digital mammography equipment using a similar network structure to InSRHN.

3. InSRHN Membership Costs and Benefits InSRHN has already provided the following benefits: $60,000 savings on heart monitors to one Indiana CAH, which is a 38% discount. $100,000+ Negotiated savings on digital mammography equipment. (This price is negotiated with one vendor, this benefit may increase)

4. InSRHN Membership Costs and Benefits InSRHN provides the following costs savings to InSRHN members. • IRHA Unlimited Organizational Membership dues, currently valued at $650, which includes a reduction in registration costs for CAH programs. • $109,250 in staffing costs to administer the network. This includes staff time, travel, technology, meeting space and ancillary costs per year. This cost also includes total full time equivalent staffing resources required from IRHA. • The staffing requirements are as follows: .10 IRHA Director, .25 Administrative Assistant, .75 HIT Coordinator and 1.0 InSRHN Director. This cost will be spread out amongst the member hospitals. We assume there will be at least 25 member hospitals for a total cost of $4,370 per hospital.

5. InSRHN Membership Costs and Benefits InSRHN also provides the following network benefits: Value in collaboration between Indiana hospital peers and other states. The network hospitals have control over process and benefits to the network. Access to peer groups with in Indiana and other states for best practices, discussion and collaboration Provides a sustainable base for independent hospitals to achieve benefits similar to hospital systems.

6. InSRHN Membership Costs and Benefits In addition to the benefits outlined above the InSRHN will also provide roundtable discussion groups for the relevant member hospital staff (CEO, IT, Materials Management, Radiology). Round table discussion groups will provide the following benefits: Scheduled meeting times and places to discuss best practices, issues, obstacles, improvement, trends, etc. for peer groups of hospital staff. Facilitating stronger relationships between rural hospitals in order to better serve Indiana’s rural communities. Ability to discuss hospital needs in a collaborative environment and use the outcomes to influence the direction of InSRHN. Access to a secure online forum to discuss and collaborate on issues outside the scheduled meetings

7. InSRHN Membership Costs and Benefits The fee of $5,000.00 will cover all of IRHA’s costs to administer InSRHN and make it sustainable in its current generation. As InSRHN develops and grows, according to the wishes of member hospitals, additional services/products can be added and fees adjusted accordingly.

8. InSRHN Membership Costs and Benefits