Mar 09, 2019
Oregon Health & Science University is Oregon’s only academic health center, with a main campus, including two hospitals, in Portland. OHSU was included on US News & World Report’s best hospitals list for 22 consecutive years and is one of the nation’s top 28 biomedical research institutions.
Two OSHU surgeons were performing total shoulder arthroplasty procedures, and each was using a different vendor’s shoulder system. Because the OHSU team had been focused on larger product categories, they had not previously prioritized this small-volume category.
Lumere’s Category Optimization solution presented a savings opportunity combined with a strategy of using clinical evidence to negotiate vendor pricing. When the OHSU team presented these findings to the two surgeons, the physicians who had long standing histories with the vendor product were surprised to find that other organizations were receiving better pricing. Armed with this information, the OHSU team and the physicians collaborated to inform the vendors that the premium prices weren’t warranted by the clinical evidence.
The partnership between OHSU administrators and physicians allowed the organization to push the vendors to even greater savings than initially offered. OHSU ultimately recognized a 20% percent savings of more than $400k on a total of $2 million shoulder device spend without having to consolidate vendors.
Savings on Shoulder Devices
Impact on Physician Choice
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