Beaumont Health joins UHC and Novation to increase cost savings, improve supply chain performance

UHC announced today that Beaumont Health has partnered with UHC and its supply contracting company, Novation, on a new two-year initiative designed to increase cost savings and supply chain performance improvement.

A leading nonprofit health care organization, Beaumont Health comprises Beaumont Health System, Botsford Health Care, and Oakwood Healthcare, encompassing eight hospitals and 163 outpatient sites. The new initiative, which continues a two-year partnership established between Beaumont Health System and UHC, will provide Beaumont Health with access to Novation's price-competitive supply contracts and UHC's supply chain analytics, industry-leading consulting, and tools for improving supply utilization and standardization.

"The dynamics of our market are constantly changing, and supply chain decisions have a greater impact on enterprise-wide performance than ever before," said Mike Langlois, senior vice president, Supply Chain, Beaumont Health. "We look forward to building on our past partnership with UHC and scaling new heights in our supply chain that will support our mission to provide high quality and efficient care to the communities we serve."

Beaumont Health will leverage Novation's procurement solutions to aggregate purchasing across its facilities and collaborate with UHC consultants to develop strategies for achieving sustainable cost reduction. The organization will also use UHC's supply chain business intelligence tool, SpendLINK®, to support strategic sourcing decisions. This industry-leading tool rapidly aggregates contracting and procurement data to help organizations pinpoint savings opportunities and benchmark the price competitiveness of their supplier contracts relative to those of other hospitals and health systems. UHC's educational resources and programs, including its Value Analysis Program and Technology Assessment Program, will also be provided to Beaumont Health.

"Over the past two years, UHC and Beaumont Health System have had a successful partnership focused on helping the system achieve greater savings across its supply chain," said Jake Groenewold, UHC's senior vice president, Supply Chain. "We are excited to continue our collaboration and to extend it to the entire network of hospitals that make up the newly formed Beaumont Health. We will help the organization take advantage of the opportunities presented by aggregating procurement across operations and utilizing the suite of UHC data tools to deploy best practices and improve overall performance, both clinical and operational."