Erie County Medical Center Health Care Network
Despite declining occupancy rates, an upstate New York IDN moves ahead with plans to remodel, add facilities and capital equipment, and choose a new group purchasing organization.
With occupancy rates in a steady decline mirroring a general population decline in the region, the outlook is not what could be described as favorable for the Erie County Medical Center Health Care Network in Buffalo, New York. However, the one-hospital system is known as a high-quality acute-care facility and is working hard to carve out a niche that will leave the small system in business and on track for the coming years. The population decline has already set the stage for at least two hospital closings in the region and mergers could take an even higher toll in the coming months. Still, ECMC is the regions primary trauma and teaching center, which should help ensure its success.
Capital Equipment Replacement Is Priority One
ECMC is capitalizing on its statewide reputation for the quality outcomes produced by its open heart program. To that end, the decision has been made to replace an older cardiac cath lab with two new ones, a project that, including construction, is projected to cost about $2.5 million. Toshiba America Medical Systems (Irvine, California) has received the largest share of the cath lab equipment contracts for a project that is now in the renovation stage.
In fact, over the next five years, the system expects to spend about $11 million to replace and acquire new radiology equipment. The first project on the list is for the systems first angiography and fluoroscopy units, where some $3 million to $3.5 million alone will be spent. Plans are also afoot to replace older general X-ray units and bone densitometers.
While those projects are underway, ECMC is weighing its GPO options. The system was previously affiliated with MedEcon Services (Louisville) before a New Jersey group acquired that GPO. According to Paul Candino, ECMCs CEO, a choice must be made between Premier Inc., Novation and Western New York Cooperative. At press time, a decision was expected to be made by the end of April, says Larry Graner, the systems assistant director of support services and materials manager. However, it will be a surprise to many if the selection is not Premier Inc.
"Premier has been more aggressive and also offers us more flexibility," explains Graner. "We generally feel that in order to find similar savings from Novation, we would have to commit to its Opportunity program." If Premier is the winner, ECMCs affiliation will be through its link to Mercy HealthSystem and Catholic Healthcare East.
Before a GPO decision is made, one obstacle must first be ironed out, one that may provide a clue to just how flexible Premier will be with ECMC as it competes for the systems estimated $22 million in annual spending (including pharmaceuticals). That possible snag involves the Convertors line of gowns and drapes the system has historically purchased from Allegiance Corp. (McGaw Park).
The IDN is in its fourth year of a very successful stockless/just-in-time distribution program with Buffalo Hospital Supply. But, while Premier and Allegiance have a corporate agreement that includes the Convertors line, Premiers distribution agreements do not include Buffalo Hospital Supply. Allegiance is unwilling to sell its gowns and drapes through BHS, and ECMC is just as unwilling to switch distributors, preferring to maintain its successful relationship with BHS. So some sort of compromise must be forged for the system to move ahead with its Premier affiliation.
Despite that hiccup, both Graner and Joe Gervase, director of support services, feel that Premiers pricing is superior to Novations, even taking into account the cost and the grief some conversions will create.
Since the JIT program kicked off in April 1995, Graner and Gervase estimate that ECMC saved about $2 million. Some 24 FTEs were cut from the payroll, mostly through attrition and early retirement from New York State. Plus, a warehouse that once held as much as $600,000 in inventory now houses just $50,000 in emergency supplies. Buffalo Hospital Supply delivers once a day, six times a week to the IDN.
Graner is seeking some creative agreements in several areas for the near future. One of those involves eye surgery. ECMC averages approximately 300 procedures each year, but hopes to increase that number. Alcon Surgical (Irvine, California) and Storz Ophthalmics Inc. (Clearwater, Florida) are now vying for a share of the possible 900 to 1000 procedures over the next three years in a proposed deal that will package equipment and supplies, though not lenses, on a price per procedure basis.
Another upcoming project at ECMC will be a modernization and enlargement of its surgical and trauma intensive care units. The $3.4 million project will include a rebuilt and relocated dialysis center.
IDN Composition
Not-for-profit (county owned)
Composition
Community/tertiary care hospitals 1
Total # of beds 550
Freestanding clinics 4
Nursing homes 2
Total # of beds 794
GPO
Currently under negotiation
Significant Vendors
Buffalo Hospital Supply
McKesson
Eastman Kodak
Eaton Office Products
Stockless, just-in-time distribution
Key Executives
Corporate Office
462 Grider Street
Buffalo, New York 14215
716-898-3289 phone
716-898-5203 fax
Web site (under construction)
http://www.ecmc.edu
Paul Candino
Chief Executive Officer
Sheila Kee
Chief Operating Officer
Mark Zygas
Chief Financial Officer
Helene Kramer
Chief Information Officer
Materials Office
Joe Gervase
Director of Support Services
Larry Graner
Assistant Director of Support Services/Materials Management
Peter Pascale
Pharmacy Director
716-898-3281 phone
Ed Marschner
Assistant Director of
Supply Processing and Distribution
716-898-3861 phone
Barb Sims
Purchasing Supervisor
716-898-3252 phone
Upcoming Projects
Equipment Purchases
Radiology equipment
Angiography
Fluoroscopy
X-ray units
Bone densitometers
Construction