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Success Stories

OC Reilly counsels and assists its valued clients in achieving success in the services they offer, including supply chain solutions, biomedical and clinical engineering, perioperative logistics, sterile processing services, physician preference, food service, and purchased services for hospitals, health care systems, and long-term care facilities. This page offers examples of those stories.

Mon Health

Through a special arrangement, OC Reilly loaned a senor consultant to a major health care system in West Virginia, which was about to launch a major organizational change. The steady hand leading supply chain operations assisted this system to achieve meaningful savings and improve efficiency while it searched for a permanent hire – all while the COVID-19 pandemic continued to have an impact.

AT A GLANCE:

  • Customer: Mon Health
  • Market: Health Care
  • Service: Loaned advisor Ed Moran to fill essential supply chain leadership void during conversion to a centralized organizational structure.

“Ed has brought many years of robust and solid materials/supply chain management experience to Mon over the last several months.  We are grateful that he was able to stay with our department through all the issues with COVID-19 and be a valuable resource.  I certainly have enjoyed my time with Ed.  His professional demeanor and approach is infectious. Thanks to you, Ed, for all you have done here with the Mon team!” — Keith D. Dabbs, MBA, System Director Supply Chain Management, Mon Health

Challenge:

Mon Health needed to sustain supply chain operations, maintain staff morale, and seek operational improvements during a transformation to centralized operations – all without having a full-time manager in place. Adding to the complexity of the issue, the COVID-19 pandemic added concerns like shortages of PPE, medical and surgical supplies, antimicrobial products, and hand sanitizers. The virus also led to reductions in hospital revenues, due to cancelled and forgone services, while adding costs associated with purchasing needed supplies.

Solutions:

OC Reilly’s director supply chain, Ed Moran, brought a high level of competency in completing the work of establishing a workable supply chain model to carry Mon Health through its transition until a permanent placement had been hired. Moran placed top priority on increasing staff motivation and morale by reducing pressure, and assisting the team deliver solutions on time and within budget. Included in Moran’s plans was increasing collaboration and communication with people across the various Mon Health hospitals as the system transitioned to a centralized supply chain strategy. COVID-19 issues were addressed by actively reaching out to sources to access the National Emergency Medical Stockpile, daily review of vendors and allocations, and engaging daily with an incident command function to respond quickly to identified needs and problems.

Results:

The Mon Health system saw a more focused vision, achieved a reduction in overall supply-chain related costs, and quicker decision-making and implementation of plans as a result of Moran’s involvement. By fostering an environment based on a transparent leadership team, Moran has set Mon Health on the road to aligning all entities under one parent company and creating a centralized supply chain. After conducting a smooth and thorough handoff to the permanent System Supply Chain Director, Moran completed his placement by providing the health system with the tools and the procedures to better control its spend while maintaining quality patient care under a centralized structure.

About Mon Health:

Mon Health, an integrated health care delivery system, serves patients in north-central West Virginia, western Maryland, and southwestern Pennsylvania.

Chesapeake Regional Healthcare

OCR Medical Equipment Management (OCR MEM) enabled a large health network in Virginia to achieve “multi-million dollars in cumulative cost savings” within sensitive patient care areas while maintaining outstanding quality care and medical equipment maintenance services.

AT A GLANCE:

  • Customer: Chesapeake Regional Healthcare (CRH)
  • Market: Health Care
  • Featured Product: OCR MEM: Based on industry leading methodologies to identify areas of greater reliability, cost efficiencies, effective use of capital / contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to health care providers today. OCR MEM in concert with OC Reilly, Inc. (OCR) supply chain approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.

“We had determined that as a result of our 100% dependency on external and expensive medical equipment vendor services and scale, there was an opportunity to significantly reduce our medical equipment management costs. OCR MEM provided us with valuable market intelligence, engagement skills, and vendor negotiating expertise that enabled us to successfully re-engineer our approach to medical equipment management. By virtue of designing an “in-house Biomed program” in concert with enhanced oversight with regard to Original Equipment Manufacturer (OEM) services, we were able to achieve significant savings while maintaining outstanding quality care.”  — Amber L. Egyud, DNP, RN, Chief Operating and Nursing Officer, Chesapeake Regional Health

Background:

CRH, a multiple hospital (and expanding) health system delivering all forms of high-level patient care, uses high-cost products and medical equipment, dramatically affecting its financial bottom-line.

Challenge:

Leadership at CRH realized the financial stress created by costs associated with Medical Equipment Management (MEM™) technical service and product choices but were not sure how to address them in the most effective manner. They asked OCR MEM to assist.

Solution:

Drawing on its national and regional resources, OCR MEM’s team recommended that CRH consider “in sourcing” biomedical engineering across the enterprise while partnering with other major OEM’s to deliver the higher-end imaging services for the system hospitals and surgical services off-site locations. This determined appropriate levels of medical equipment technical support without compromising quality. OCR MEM also assessed CRH’s purchased maintenance contract spend, identifying options to lower costs in the maintenance and repair of these expensive assets and services.

Results:

Through the OCR MEM proprietary assessment and validation process, CRH determined its “total cost of ownership” to support its existing fleet of medical devices. OCR MEM’s recommendations required a concerted effort on the part of CRH, particularly its physicians and the executive leadership, to convert to a re-engineered service delivery model. The combined efforts succeeded, while significantly reducing spend. Also, by re-negotiating its medical equipment maintenance contracts, CRH dramatically reduced costs without any changes to equipment coverage or uptime. The technical services and sourcing initiatives identified by OCR MEM improved the health system’s annual bottom-line results by an estimated $1.2 million dollars annually.

About Chesapeake Regional Healthcare:

As a unified family of providers, CRH brings a broad range of care to the people of southeast Virginia and northeast North Carolina through Chesapeake Regional Medical Center and its affiliate services. A local, independent, community-focused organization, CRH offers area residents what they want: high quality, technologically advanced health care delivered by people who openly display their caring, concern and compassion.

CRH is rolling out new technologies, state-of-the-art facilities, breakthrough clinical protocols, leading edge electronic information systems and powerful wellness initiatives to make each patient’s care faster, safer and more effective. This results in better patient outcomes, higher satisfaction, more holistic treatment and fewer complications.

As an independent health care system, CRH is free to focus, invest, optimize and deliver care by enabling all physicians, staff and employees to treat each patient as a person. They continue to be recognized with praise and awards from national organizations.

Hackensack Meridian Health

OCR Medical Equipment Management (OCR MEM) enabled the largest health system in New Jersey to achieve multi-million dollars in cost savings within sensitive patient care areas while maintaining outstanding quality care.

AT A GLANCE:

  • Customer: Hackensack Meridian Health (HMH)
  • Market: Health Care
  • Featured Product: OCR MEM: Based on industry leading methodologies to identify areas of greater reliability, cost efficiencies, effective use of capital / contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to health care providers today. OCR MEM in concert with OC Reilly, Inc. (OCR) supply chain approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.

“We had determined that as a result of our scale, there was an opportunity to significantly reduce our medical equipment management costs. OCR MEM provided us with valuable market intelligence, physician engagement skills, and vendor negotiating expertise that enabled us to successfully re-enter the medical equipment management space and achieve significant savings from market leading vendors while maintaining outstanding quality care.”   – Joseph Lemaire, President, Hackensack Meridian Health Ventures

Background:

HMH, a sixteen-hospital (and expanding) health system delivering all forms of high-level patient care, uses high-cost products and medical equipment, dramatically affecting its financial bottom-line.

Challenge:

Leadership at HMH (including physicians, surgeons and executive administrators) realized the financial stress created by costs associated with Medical Equipment Management (MEM™) technical service and product choices but were not sure how to address them in the most effective manner. They asked OCR MEM to assist.

Solution:

Drawing on its national and regional resources, OCR MEM’s team recommended that HMH consider “in sourcing” biomedical engineering across the enterprise while partnering with a major OEM to deliver the higher-end imaging services for the system hospitals. This helped determine appropriate levels of medical equipment technical support without compromising quality. OCR MEM also assessed HMH’s purchased maintenance contract spend, identifying options to lower costs in the maintenance and repair of these expensive assets and services.

Results:

Through the OCR MEM proprietary assessment and validation process, HMH determined its “total cost of ownership” to support its existing fleet of medical devices. OCR MEM’s recommendations required a concerted effort on the part of HMH, particularly its physicians and the executive leadership, to convert to a re-engineered service delivery model. The combined efforts succeeded, while significantly reducing spend. Also, by re-negotiating its medical equipment maintenance contracts, HMH dramatically reduced costs without any changes to equipment coverage or uptime. The technical services and sourcing initiatives identified by OCR MEM improved the health system’s annual bottom-line results by $6.2 million dollars annually.

About HMH:

Hackensack Meridian Health is the largest healthcare system in New Jersey, and one of the state’s largest private employers. HMH’s integrated health care network is taking health care in New Jersey life years ahead. HMH’s mission is to transform health care and be recognized as a leader of positive change. Established in 2016, it now encompasses (16) acute-care and general hospitals — including the flagship 711-bed Hackensack University Medical Center – 6,500 physicians and over 160 locations.

Presbyterian SeniorCare Network

OC Reilly enables major long-term care system to achieve seven-figure savings by understanding and responding to the supply chain needs of many constituencies and achieving comprehensive compliance.

AT A GLANCE:

  • Customer: Presbyterian SeniorCare Network, Pittsburgh, PA
  • Market: Long-Term Health Care
  • Featured Product: OCR supply chain / financial bottom-line analysis and recommendations: Based on five key areas of greater reliability, cost efficiencies, effective use of capital / contracting, enhanced safety, and risk mitigation – OCR combines to provide the best, most comprehensive set of products, services, and professional resources available to long-term health care providers today. This approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.

“The OC Reilly team did an outstanding job with assessing the needs of internal and external stakeholders and identified a number of key strategic areas for improvement.” – Paul M. Winkler, President and CEO, Presbyterian SeniorCare Network

Background:

Presbyterian SeniorCare Network is a non-profit, faith-based network of living and care options with more than 2,100 employees serving the needs of more than 6,500 older adults each year in 10 counties in western Pennsylvania.

Challenge:

Leadership at Presbyterian SeniorCare Network identified the need to assess its supply chain operations to create greater efficiencies, effectiveness and customer service. Items including medical supplies, rental equipment, janitorial and maintenance supplies, purchased services, food and dietary and many more products and services needed to be better procured, inventoried, planned, strategized, and maintained. They asked longtime advisor OC Reilly to assist in this effort.

Solution:

The OC Reilly team conducted a thorough assessment and in-depth analysis of the needs of the Presbyterian SeniorCare Network’s internal and external stakeholders and identified a number of key strategic areas for improvement. The OC Reilly team also made a series of specific, fact-based, strategic recommendations for how to address these areas of opportunity in a comprehensive and sequential manner, in the period following the initial adjustments that included supplier and contract management.

Results:

Following the OC Reilly recommendations enabled the senior management team and department staff to successfully roll-out action plans that served to transform what had been considered to be an inefficient department into a high-performance department that has produced millions of dollars in cost savings within two years and greatly enhanced internal customer satisfaction. This process has contributed to Presbyterian SeniorCare Network establishing itself solidly for ongoing financial viability and success.

About Presbyterian SeniorCare Network:

Presbyterian SeniorCare Network, a non-profit, faith-based continuum of accredited living and care options, is committed to Making Aging Easier®. Its mission remains to provide the highest quality of care possible through a comprehensive spectrum of care and service options to meet the needs of older adults from all walks of life, wherever they are on life’s journey, from senior living communities and affordable housing to at-home programs and services.

West Virginia United Health System

OC Reilly healthcare supply chain consulting enables largest health system in West Virginia to achieve seven-figure savings in sensitive patient care areas while maintaining high quality of care.

AT A GLANCE:

  • Customer: West Virginia United Health System
  • Market: Healthcare
  • Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to healthcare providers today.  OCR Supply Chain and Medical Equipment Management (MEM)™ approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.

“We knew we needed to tackle some of the most challenging categories of supply chain contracting where we had not made significant inroads in the past.  OC Reilly provided us with market intelligence, physician engagement skills, and vendor negotiating expertise that enabled us to successfully enter the physician preference arena and achieve significant savings from market leading vendors.” – Steve Bowman, Corporate Procurement Director, West Virginia United Health System

Background:

West Virginia United Health System (WVUHS), a six-hospital health system delivering all forms of high-level patient care, uses high-cost products and medical equipment, dramatically affecting its financial bottom-line.
Challenge

Leadership at WVUHS – including physicians, surgeons and executive administrators – realized the financial stress created by the costs associated with Physician Preference Items (PPI) and Medical Equipment Management (MEM) product choices, but were not sure how to address the issue in the most effective manner.  They allowed OC Reilly the opportunity to assist.

Solution:

Drawing on its national and regional resources, OC Reilly’s team of healthcare supply chain experts recommended that WVUHS consider PPI alternatives, starting with spine products. This was done in a manner to determine appropriate levels of care without compromising quality.  OC Reilly also assessed WVUHS’ MEM spend, identifying options to lower costs in the maintenance and repair of these expensive assets and services.

Results:

Through the validation process, WVUHS maintained some existing products but determined that certain other PPI recommendations from OC Reilly required a concerted effort on the part of WVUHS, its physicians and the OC Reilly team to convert to alternative but comparable products. The combined efforts succeeded, while significantly reducing spend.  Also, by re-negotiating its medical equipment maintenance contracts, WVUHS dramatically reduced costs without any changes to equipment coverage or uptime.  The product and sourcing initiatives identified by OC Reilly improved the health system’s annual bottom-line results by seven figures.

About WVUHS:

The West Virginia United Health System is the largest healthcare system in West Virginia, and the state’s second-largest private employer. Established by the West Virginia Legislature and the voluntary affiliation of several non-for-profit hospitals in 1996, it now encompasses six acute-care hospitals — including the flagship Ruby Memorial Hospital on the campus of West Virginia University — dozens of medical offices, and a diverse network of affiliated organizations. WVUHS member hospitals provide about 25 percent of the inpatient hospital care in the State of West Virginia.

Meadville Medical Center

OC Reilly healthcare supply chain consulting enables major regional health system in Pennsylvania to achieve seven-figure savings by auditing existing contracts and enforcing their terms diligently.

AT A GLANCE:

  • Customer: Meadville Medical Center, Meadville, PA
  • Market: Healthcare
  • Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation – combines to provide the best, most comprehensive set of products, services, and professional resources available to healthcare providers today. OCR Supply Chain and Medical Equipment Management (MEM)™ approach guides all of OCR’s interactions and solutions with customers, as demonstrated in this case study.

“It had become apparent that inefficiencies in our spending were causing us problems, but it became difficult to pinpoint where the major areas of concern were occurring.  OC Reilly provided us with the knowledge of health care supply chain processes and administration to not only identify where the pain was happening, but also a plan to improve process and keep our spending well controlled.” – Rene Suntay, Chief Financial Officer, Meadville Medical Center

Background:

Meadville Medical Center is a leader in healthcare in northwestern Pennsylvania, with the newest technology, including the latest generation of ultrasound, CT and MRI technology

Challenge:

Leadership at Meadville Medical Center became concerned over financial stress created by rising costs associated with Physician Preference Items (PPI) and Purchased Services, including administrative services related to laboratory expense, and even laundry and linens. Administrators were not sure how to address the issue in the most effective manner. They allowed OC Reilly the opportunity to assist.

Solution:

Drawing on its deep, proven first-hand experience in healthcare supply chain matters, OC Reilly’s team of experts conducted a thorough audit of total joint purchases, along with a full spectrum of administrative expenses. Those audits uncovered over-selling among total joint manufacturers, invoices from service providers that over-charged or charged for items not within the contract, and other areas of waste.

Results:

By following the OC Reilly recommendations in identifying unjustified expenses and strictly enforcing the terms of contracts, Meadville Medical Center was able to assist in bringing its spending back into tighter control, positioning the healthcare system for continued success. The OC Reilly process has saved Meadville Medical Center millions of dollars to date.

About Meadville Medical Center:

Meadville Medical Center is an outstanding community hospital located in Meadville, Pennsylvania. The hospital continually works to meet the community’s needs by maintaining up-to-date and state-of-the-art facilities. It is a leader in healthcare in northwestern Pennsylvania, with the newest technology, including the latest generation of ultrasound, CT and MRI technology. Its medical staff of more than 100 consists of 37 medical/surgical specialties, with an extensive primary care foundation.

Allegheny Health Network (AHN)

OC Reilly healthcare supply chain consulting enables major health system in Pennsylvania to achieve more than $70 million in savings by establishing and implementing a comprehensive supply chain management system.

AT A GLANCE:

  • Customer: Allegheny Health Network (AHN), Pittsburgh, PA
  • Market: Healthcare
  • Featured Product: OCR Supply Chain and Medical Equipment Management (MEM)™: Based on five key areas of greater reliability, cost efficiencies, effective use of capital/contracting, enhanced safety, and risk mitigation, this program provides the best, most comprehensive set of products, services, and professional resources available to healthcare providers today.

“Achieving peak cost-efficiency in a systemic, orderly, sustainable manner from the launch of AHN – and even prior to launch – became an imperative for us. We knew that the proven, longstanding legacy of supply chain expertise represented by Bill O’Connor and his team at OC Reilly offered the most reliable option. That decision has been confirmed many times over.”  – John Paul, Chief Executive Officer, AHN (Retired)

Background:

AHN is an integrated health system dedicated to raising patient experiences while lowering the cost of healthcare in communities across 29 Pennsylvania counties and portions of New York, Ohio, and West Virginia.

Challenge:

AHN was formed in 2013 as a coordinated health system, offering an alternate and competitive option for patients and other healthcare consumers primarily in the greater Western Pennsylvania region. As a newly formed group of healthcare facilities and offices, coordinated under insurance provider Highmark Health, AHN faced considerable issues in streamlining operations, controlling costs, and overall supply chain management.

Solution:

Operating from a platform of “firm, fair, and aggressive” support to AHN, OC Reilly performed extensive research and developed a comprehensive supply chain program and process. Key areas of concentration and focus include: more carefully documenting and managing patient-related costs; renegotiating prices and contractual terms with suppliers; and installing a standard process regarding spending decisions. OC Reilly’s proprietary approaches to MEM™ and Physician Preference Items remain critical factors for AHN. OC Reilly also helped to develop and implement Provider Supply Chain Partners, a standalone AHN resource to acquire products and services through the economic leverage provided by aggregating spend, and implementing high-commitment, high-compliance, and standardization programs. OC Reilly’s Logistics Team conceived and helped to develop a Distribution Center that today affords AHN lower-cost access to products held locally.

Results:

By following the OC Reilly recommendations, AHN realized savings of more than $70 million within the first year of operation, solely from “firm, fair, and aggressive” supply chain management. This level of savings has been maintained every year since.

About AHN:

Allegheny Health Network is a unified system dedicated to providing affordable, exceptional care to people in its communities. Its patient-centered approach to care means a greater focus on coordinated health and wellness services, as well as being accountable and responsible to patients from start to finish. AHN comprises eight hospitals with more than 2,000 beds, six surgery centers, 2,800 aligned medical professionals, and 17,500 total employees.

Distribution Center Serves AHN Supply Chain Needs

A new 167,500-square-foot supply chain Distribution Center for the Allegheny Health Network has been placed into operation in Western Pennsylvania. OC Reilly is managing this project, designed to improve supply chain operations and cost efficiencies for the AHN.