CHICAGO, IL – January 6, 2016 – Procured Health (Procured) announced today that it achieved record growth in 2015. The four-year-old, Chicago-based company noted that the healthcare industry’s shift towards value-based care and bundled payments was a key driver of its success, and will continue to be in 2016, as more hospitals prepare for the challenges of new payment models based on cost, quality, and outcomes. Procured’s technology-driven solutions empower the buyers and users of medical products to make optimal decisions. Health systems leveraging Procured’s platform have eliminated substantial costs while also improving clinical outcomes.
Clinical supplies, including physician preference items (PPIs), represent the second largest and fastest-growing cost category for hospitals. Uninformed decisions in this realm will account for more than $35 billion in wasteful spending in 2016. These wasted dollars are noteworthy not only because they have been largely ignored by most hospitals until now, but also because pursuing evidenced-based savings initiatives in the supply chain impacts quality and patient care—not just the bottom line.
“Clinical spend management has become a must-have core competency for healthcare providers. Value-based care demands that hospitals deliver the best patient care while also maintaining financial viability. That goal is virtually unattainable without a deeper, more rigorous examination of medical supply selection and utilization,” explains Hani Elias, JD, MPH, Chief Executive Officer of Procured. “Our growth in the past year reflects that this isn’t a passing trend. Clinical spend management is now a priority for all hospital types – academic medical centers, for-profit systems, and community hospitals. In 2016, we plan to further invest in our existing solutions and to develop additional modules that address more of the underlying causes of inefficient spending and utilization.”
Procured Health's growth accelerated in 2015 as follows:
- 250 percent increase in Annual Recurring Revenue (ARR) under contract.
- 150 percent increase in the number of health systems using the company’s software. These new health systems include leading academic medical centers like Stanford Health Care, Johns Hopkins Health System, and Northwestern Medicine and award-winning health systems like Advocate Health Care, St. Joseph Health System, and Legacy Health.
- 335 percent increase in the number of active users. This indicates not only that more facilities are adopting the product, but also that more clinicians and hospital administrators are benefitting from Procured’s applications.
- 90 percent increase in the research breadth of Procured’s IntelligencePRO™. The research now covers over 12,000 medical devices, including all of the most requested devices on the market today.
- 70 percent increase in number of team members.
- 100 percent renewal rate within current client base.
“Physicians today have come to the realization that clinical excellence, while still of utmost importance, must be coupled with cost reduction efforts to drive value. Physician leaders, once they are aware of price variation and clinical outcomes data, are questioning the premium their health systems are paying —and they are influencing their colleagues to do the same,” says Dr. Julie Schulz, MD, MPH, Director of Clinical Content at Procured. “There has never been a more important time for physicians to select the right product, for the right patient at the right time to positively impact both clinical outcomes and financial performance as a result. The opportunity to make a difference is huge and we look forward to helping even more hospitals in the upcoming year.”
Procured’s web-based platform enables health systems and clinicians to improve both clinical outcomes and financial performance by incorporating evidence into their product selection, utilization, and contracting strategies.