Summary
This case study details the collaboration between Oregon Health & Science University (OHSU) and GHX Lumere, focusing on the implementation of the Category Optimization solution to achieve cost savings on shoulder devices. OHSU, recognized as a leading academic health center in Oregon, faced challenges with two surgeons using different vendor systems for total shoulder arthroplasty procedures. The supply chain team had previously overlooked this small-volume category due to its low order volume. By leveraging clinical evidence to negotiate vendor pricing, OHSU was able to inform vendors that premium prices were not justified. As a result, OHSU realized a 20% savings of over $400,000 on a total spend of $2 million for shoulder devices, demonstrating the effectiveness of evidence-based pricing strategies in optimizing procurement processes.
