CHICAGO, IL – January 31, 2017 – Procured Health, a leading provider of technology applications that enable health systems and physicians to align practice with clinical evidence, announced today that it achieved record growth in 2016 for the second consecutive year. In addition, their customers achieved more than $70M in annualized cost savings, while maintaining or improving patient outcomes. The five-year-old, Chicago-based company noted that the healthcare industry’s shift towards value-based care continued to be a key driver of its success. Despite political uncertainty, health systems remained focused on increasing value to patients by reducing care variation as well as expenditures on unproven therapies and devices. In fact, Procured Health acquired more business post-election than in any other period in its history.
Procured Health added several leading centers of excellence to its membership in 2016, including Duke University Health System, Memorial Sloan Kettering, Dartmouth-Hitchcock, Indiana University Health, The Ohio State University, Novant, MultiCare Health System, Scripps Health, MaineHealth, OSF Healthcare, Baptist Health (Memphis), and Riverside Healthcare. In total, more than 450 hospitals in 32 states leverage solutions from Procured Health to improve care quality and reduce expenses related to selection and utilization of implants, medical devices, and clinical supplies. These items continue to represent the second largest and fastest growing cost category for hospitals and will be responsible for more than $35 billion in waste in 2017.
“Over the last two years we have seen health systems invest significant resources to develop or enhance programs that ensure patients receive the greatest value when they need surgery or medical intervention. This trend suggests a more fundamental shift in the way health systems are approaching clinical device selection and care variation. We are pleased by the impact documented by our health system partners and are committed to doing more to ensure they are prepared for the future,” said Hani Elias, JD, MPH, Chief Executive Officer of Procured Health.
“As we look to 2017, we anticipate an increased focus on consumerism in health care. With greater financial exposure, patients will favor those health systems that have proven to be effective financial stewards. Health systems have an ability to differentiate themselves by increasing the rigor by which they examine medical device selection and utilization,” explains Elias.
2016 was also a year of considerable investment by Procured Health to drive innovation to solve crucial problems in healthcare. Most notably, Procured Health expanded its application suite to support ongoing tracking of initiatives, overhauled its user interface, and added sophisticated benchmarking capabilities. Additionally, the team doubled in the last twelve months, with the most substantial investments in data science and product research. Team growth also included the creation of new leadership roles for industry veterans from Stanford HealthCare, Vizient, Boston Consulting Group, Press Ganey, Truven, and McKesson. This investment will yield new offerings in 2017.
Procured Health's growth accelerated in 2016 as follows:
- 125 percent increase in Annual Recurring Revenue (ARR) under contract.
- >100 percent in hospital subscribership
- >100 percent increase in the research database, which now covers >20,000 medical devices, including most of the requested devices on the market today.
- >97 percent renewal rate within current client base.
“Physician leaders at health systems with superior clinical reputations have demonstrated a commitment to ensuring their patients are getting value. They are questioning long-held assumptions, engaging their peers, and driving conversations with medical device manufacturers to eliminate clinically unnecessary spend or utilization of high-priced therapies,” says Dr. Julie Schulz, MD, MPH, Vice President of Clinical Engagement & Effectiveness. “Physicians are increasingly recognizing that their involvement in these efforts is critical to the overall wellbeing of their patients. We look forward to continuing to provide them with the resources they need to make fact-based decisions.”