By Bill O’Connor, President and CEO, OC Reilly, Inc.

(March 8, 2021)—Sometimes the best solution to a problem can be found in simply following the rules to the letter and allowing the established guidelines to do their jobs as intended. Such was the case at Meadville Medical Center (MMC) in Meadville, PA.

Leadership at MMC had become 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.

“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,” explained Rene Suntay, MMC Chief Financial Officer.

“We invited OC Reilly in to offer guidance,” Suntay continued. “They 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.”

The OC Reilly team 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.

By following the OC Reilly recommendations in identifying unjustified expenses and strictly enforcing the terms of contracts, MMC brought spending back into tighter control, savings millions in the process, and positioning the system for continued success.

Getting a clear picture of where dollars are being spent, when, and why, then straightening it all out to run as initially planned – with improvements introduced as appropriate – can lead to a healthier bottom line. Contact OC Reilly to start the process on behalf of your organization.

© 2021 OC Reilly, Inc.