Delivering the 5 missing pieces to complete the puzzle for a Successful GPO Partner Strategy

Provider-Owned, Operator Vantage Point
 
Vertically Integrated Service Offering
 
Clinically Integrated Supply Chain
 
Guaranteed Sustainable Cost Savings
 
No Fees For Service
 

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The more money we can save, the more we can reinvest into people, products and equipment, which helps patients. We partnered with ROi to become a collaborator and innovator in the industry, and through their help, we are accelerating our performance.

- Ken Meinke, Senior Vice President/Chief Financial Officer, Spartanburg Regional Healthcare System

Provider-Owned,
Operator Vantage Point

1: Provider Owned

We deliver much more than a traditional GPO model. Drawing from our daily supply chain operator experience – managing end-to-end supply chain activities (including self-distribution and logistics) for both acute and non-acute care for one of the nation’s largest non-profit health systems – we assist our fellow provider Members in leveraging best practices in sourcing, contracting, standardization, utilization and supply chain management.

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Vertically Integrated Service Offering

2: Vertically Integrated

We leverage our self-manufacturing capabilities to provide our Members with additional savings through our custom procedure trays, private label products and IV compounding solutions. ROi sources both branded products and our own brand of private-label products, known as Regard®, which provide lower-cost product alternatives without compromising clinical value and efficacy.

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Clinically Integrated Supply Chain

3: Clinically Integrated Supply Chain

We integrate physicians and clinicians within our Service Line Contracting models that provide an evidence-based decision-making process for the selection and utilization of products and services, with special emphasis on Physician Preference Items and Purchased Services categories. Our clinical apps and advanced analytics offer valuable detail and intelligence into cost per case and other clinical metrics required to achieve a clinically integrated supply chain.

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Guaranteed Sustainable Cost Savings

4: Guaranteed Sustainable Cost Savings

We employ a committed contracting strategy that delivers highly competitive pricing and broad contract coverage, utilizing our proprietary benchmarking model. Our model provides long-term sustainable savings measured by the reduction in Supply Expense Per Adjusted Discharge (CMI) and supply chain expense as a percentage of net operating revenue.

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No Fees For Service

5: No Fees For Service

We offer a completely transparent pricing model providing full access to an extensive, à la carte menu of services with no hidden charges, and no service or membership fees to access our comprehensive contract portfolio or any other service offering.



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The ROi relationship is the standard for how our health system is approaching other operational areas. The work we’ve done with ROi – to make us more efficient; to reduce cost but keep service at a high level – has helped us sell our saving initiatives system-wide. We learned through ROi that we could do things as a system.

- William Mosser, Vice President, Materials Management
Franciscan Missionaries of Our Lady Health System

About ROi

Resource Optimization & Innovation (ROi) is a vertically integrated accountable supply chain organization that offers a comprehensive and viable alternative to traditional group purchasing organizations (GPOs). Based in St. Louis, we focus on all aspects of the health care supply chain, from planning through fulfillment, to ensure our customers deliver the highest quality of care in the most cost-effective manner. We believe in the transforming power of provider collaboration, achieved through customer partnerships focused on streamlining and/or controlling critical supply chain elements, including contracting, sourcing, warehousing and transportation (when applicable), data management, clinical integration, and the overall accountability of daily supply chain operations.

Our History

Fifteen years ago, ROi was founded as the supply chain organization for Mercy—a Truven Top 5 Large Health System that owns and/or operates 43 acute care and specialty hospitals and more than 700 physician practices and outpatient facilities across Arkansas, Kansas, Missouri, and Oklahoma. Mercy tasked ROi to radically rethink supply chain operations, acknowledging that conventional business practices were not producing expected and required results. ROi developed an innovative and transformational model that aligns supply chain services and GPO functions across the continuum of care, bringing together all relevant stakeholders. This model places the patient at the center while simultaneously recognizing the need to engage physicians and integrate systems. This radical approach has delivered more than $1billion in savings to Mercy since 2002.

Our Services

Today, ROi has successfully grown from a supply chain department serving one health system into a cost management and supply chain solutions provider that supports multiple health care systems across the United States. We provide a variety of services, including:

  • strategic contracting and sourcing;
  • manufacturing and packaging operations, including pharmaceutical repackaging, custom procedure trays, medical device reprocessing, and IV compounding;
  • in-hospital supply chain management; and,
  • self-distribution and transportation operations, such as consolidated service center design and management (when applicable).

Because ROi is uniquely experienced and has a focus that extends well beyond contracting, we look to share our experiences and successes with fellow providers, making us different from the traditional GPO. We believe it’s critically important that providers control their supply chain destiny and not outsource all key components of the work to third parties. As such, we offer consulting and knowledge transfer to help other hospitals and health systems stand up their own supply chain operations.

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Because ROi is uniquely experienced and has a focus that extends well beyond contracting, we look to share our experiences and successes with fellow providers, making us different from the traditional GPO.

Delivering the 5 missing pieces to complete the puzzle for a Successful GPO Partner Strategy

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