Presented by: Kimberly Gause, Samantha Harrington, Jeremy McKuin, and

Gertie Trezvant

Saint Anthony's Medical Center is a small hospital located in Morrilton Arkansas. Saint Anthony’s Center is a member of a member of the Catholic Health Initiatives (CHI), a national network of hospitals that includes St. Anthony's Center and its parent organization, Saint Vincent Health System.

Catholic Health Initiatives is a faith based national nonprofit health organization that operates in nineteen states and includes seventy-five hospitals.

To offer a solution that will assist St. Anthony's Medical Center in the reduction of material cost without reducing the quality of care provided to it patients

.

• Conduct a study to identify areas for cost reduction

• Identify ways to increase net profit

• Maintain current quality of patient care

• Identify internal and external factors that affect cost

• Develop feasible solutions

• Provide a systematic approach to reduce supply cost

• Maintain a high level of patient care

Internal factors that may affect cost:

• Cost effective products• Changes in processes• Physicians willing to change• Inventory management• Implementing Pyxis technologies• Group purchasing

External Factors that may affect cost:

• Suppliers raising costs

• Competition – other hospitals

• Patients going elsewhere

• Distribution costs

• Lean practices

• Standardization of Equipment

• Software solutions

• Implementing Pyxis Machines

The expected results of implementing the suggested cost savings measures:

• Increase in net revenue

• Improved work flow

• Reduction of lost charges

Munroe Regional Medical center saved a considerable sum of money when Pyxis was implemented.

Supply utilization reduction: $1,696.994

Net reimbursement increase: $791,608

Inventory return for cash or credit: $240,000

Total Margin Impact: $2,728,602

• Standardize equipment

• Reduce suppliers

• Reduce shelf life of products

• Implement Pyxis

• Implement EMR (Electronic Medical Records)

• Lean practices – save, save, save

• Reduce waste

Suggested:

Implementation of the cost saving measures at three month intervals or as constraints allow with full implementation within two years.

We believe that if Saint Anthony’s Center implements some or all of the recommended cost savings measures and supply controls, that Saint Anthony’s Center will experience considerable financial savings while still maintaining a high level of patient care.

We would like to thank you for your time and the opportunity to serve Saint Anthony’s Center.

Please contact The Red Group via email at the theredgroup@uark.edu or call us at 479-555-5555 with any question or comments you might have.

The Red Group