When Steve Piraino, Director of Corporate Purchasing and Supply Chain, began working at Einstein Healthcare Network over six years ago, he expected system growth, since the network planned to build a new hospital and acquire a primary care physician group. However, this new growth, combined with a reduction in staff head-count, had the unintended impact of a 280% increase in workload per full-time employee.
Because almost 84% of Einstein's payer mix is public, controlling costs is critically important. Like many other health systems, Einstein faced declining reimbursement rates as the case mix moved from admitted to observed patients. Costs and complexity increased further when Einstein's non-acute facilities began buying a wider range of SKUs than previously.
In order to maintain healthy operating margins, Einstein Healthcare Network needed to transition from manual to automated business processes, address their repetitive supply chain functions and reduce their supply costs.