A 270 bed Northeast, Sevenex® client hospital achieved rapid and significant savings/revenues with only two Sevenex® Solutions

With the hospital's efforts focused on the combination of and synergistic effects from related Sevenex® Solutions, the hospital was able to achieve rapid and significant savings with exceptional and skillful use from just two Sevenex® Solutions.


The Solution for regional cooperative and shared services encourages Sevenex® hospital clients to join cooperative forces with at least some of the other non-Sevenex® hospitals in their area or region – even market-competitive ones. With a unified commitment to utilize the same distributors, manufacturers, renters/leasers, labs, carriers, law firms, energy providers and other services, critical mass can lower overall pricing for each hospital participant. In this venture, by way of area-wide vender consolidation and standardization in all the purchase areas mentioned above, significant and rapid savings were achieved.

The Solution for putting hospital's GPO(s)' business out to bid, recommends that many of the hospital's products and services be bid on by any (many) healthcare GPO(s) – both regional and national. Often hospitals don't utilize or even forget what services are offered by their existing GPO(s) and don't take advantage of some very competitive pricing.

This exercise not only differentiates one GPO from another, but it also helps the hospital's executives evaluate as to which purchased services are and should be used in all their owned entities and units, e.g., out-patient clinics, physician offices, et al.

Some GPOs and their affiliated hospitals even offer special pricing for independent physicians' offices and hospital owned SNFs, rehab units and psych/substance abuse units. This process strengthens and expands physician relationships and good will, while increasing the volume, standardization and magnitude of discounts of items and goods purchased through the relevant GPOs.

This Sevenex® client hospital collaborated with a large hospital purchasing alliance in the Northeast U.S. to achieve incremental savings with their current GPOs. All related hospitals agreed to use the same distributors, commodity products and services (where possible) to experience an annual savings of $376K per year for just this one Sevenex® client, and only as based on best-tier pricing.

Additionally, another $1.1M in overall incremental value in the form of rebates and enhanced services made the Solutions well-worth the pursuit for this hospital.


For this Sevenex® hospital, the Sevenex® contractually guaranteed 7:1 ROI in actual (not “implementable”) dollars was achieved within the first 4 months of this multi-year program! This extremely early dollar achievement assures that the hospital's final ROI will be many times the guaranteed ROI of 7 to 1.