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Introducing GNYHA Services. Commercial Opportunities for Construction Products in Health Care Facilities Mark Victors, Director February 2010. 1. Agenda. The Greater New York Hospital Association (GNYHA) Health Care Group Purchasing Contracting with GNYHA Services
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Introducing GNYHA Services Commercial Opportunities for Construction Products in Health Care Facilities Mark Victors, Director February 2010 1
Agenda • The Greater New York Hospital Association (GNYHA) • Health Care Group Purchasing • Contracting with GNYHA Services • Hospital Construction Issues • The Facilities and Construction Contracting Process • Next Steps
Greater New York Hospital Association (GNYHA) and Subsidiaries • GNYHA: Hospital trade association with nearly 200 not-for-profit and public member hospitals • Advocates on behalf of its members and their communities for improved access to high-quality, cost-efficient health care • GNYHA Ventures: For-profit subsidiary consisting of an array of successful wholly and partially owned health care businesses • GNYHA Services is an acute care group purchasing program; leveraging our affiliation with Premier Inc., one of the nation's largest group purchasing companies
What is a Group Purchasing Organization? • Group Purchasing Organization (GPO) • An Aggregator of Volume • Negotiator of discounts, rebates and other incentives with manufacturers, distributors and vendors • Monitors, to the best of its abilities, compliance and growth of the contracted relationships
GNYHA Geographic Reach • Member hospitals located in New York, New Jersey, Connecticut, Rhode Island, Pennsylvania, and Puerto Rico • Expanded into Pennsylvania in 2009, with the addition of West Penn Allegheny Health System to our Group Purchasing Program
GNYHA Services Supply Chain Solutions GNYHA Services By the Numbers: 241 acute care hospitals and over 1,000 other health-related facilities $4.1 billion of Premier’s $33 billion in purchasing volume 169 Regional Enhancements and 99 active Direct Agreements $68 million annualized member savings related to our enhancements and direct contracts
North Shore Long Island Jewish Health System- NY Kaleida Health- NY Montefiore Medical Center- NY Mount Sinai Hospital- NY Hackensack University Medical Center- NJ NYC Health and Hospitals Corporation- NY Winthrop University Hospital- NY Health Quest Systems, Inc- NY MediSys Health Network, Inc.- NY Catholic Health System- NY Maimonides Medical Center- NY Lenox Hill Hospital- NY University of Medicine and Dentistry of New Jersey- NJ Cooper Health System- NJ Saint Vincent Catholic Medical Center- NY Top 15 Members Based on 2009 Spend
Market facts: Highest concentration of academic teaching hospitals in the world Tight geographic intensity of all types of medical facilities International presence attracts attention and provides a launch pad for new products & services and broader offerings Why Contract with GNYHA Services?
How Can You Benefit From Our Program? • Our program spotlights differentiation from other suppliers in the same competitive contract space • Provides greater visibility to wide membership • Lends vendor credibility to a wide membership based on long-established GNYHA reputation for quality contracts • Provides access to top supply chain executives • Permits suppliers to customize program for a targeted regional membership Supplier Questions: • Will a volume increase overcome a reduced margin by supporting a contract through GNYHA Services? • Do I see the growth for my business?
Abandon Renovate Build New Tear Down Hospital Construction Issues: The Beginning Do I… Add
Aging facilities Safety and environmental concerns Desire to implement evidence-based design features Need for “different” beds due to population shifts and growth, and the aging baby boomer population Space requirements for high-tech equipment and electronics Market competition Medical arms race (the missile gap) Hospital Construction Issues:What Are the Drivers? Several major influences drive health care construction:
Health Care Facilities (The Owner) Facilities and Construction Health Care Contracting Master Planning Design Effort Strategic Sourcing Supplier Pre-Approved List of Vendors Program Execution Plan
Next Steps • GNYHA Services Mission: Achieve the best pricing on behalf of our member hospitals • Working together we can build an agreement that will give our members best pricing, and you access to a pre-approved list of vendors reviewed by GNYHA Services members • Contact: Mark VictorsDirector mvictors@gnyha.org (212) 258-5309