Facilities and Construction Services

Introducing GNYHA Services

Commercial Opportunities for Construction Products in

Health Care Facilities

Mark Victors, DirectorFebruary 2010

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Agenda

The Greater New York Hospital Association (GNYHA)

Health Care Group Purchasing

Contracting with GNYHA Services

Hospital Construction Issues

The Facilities and Construction Contracting Process

Next Steps

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Greater New York Hospital Association (GNYHA) and Subsidiaries

GNYHA: Hospital trade association with nearly 200 not-for-profit and public member hospitals Advocates on behalf of its

members and their communities for improved access to high-quality, cost-efficient health care

GNYHA Ventures: For-profit subsidiary consisting of an array of successful wholly and partially owned health care businesses GNYHA Services is an acute care

group purchasing program; leveraging our affiliation with Premier Inc., one of the nation's largest group purchasing companies

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What is a Group Purchasing Organization?

Group Purchasing Organization (GPO)

1. An Aggregator of Volume

2. Negotiator of discounts, rebates and other incentives with manufacturers, distributors and vendors

3. Monitors, to the best of its abilities, compliance and growth of the contracted relationships

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GNYHA Geographic Reach Member hospitals located in New York, New Jersey, Connecticut, Rhode Island, Pennsylvania, and Puerto Rico

Expanded into Pennsylvania in 2009, with the addition of West Penn Allegheny Health System to our Group Purchasing Program

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Acute Care Group Purchasing

Value Analysis

Technology

Physician PreferenceConsulting Services

Revenue Cycle

Benchmarking

A Supply Chain Solution Company

GNYHA Services Supply Chain Solutions

GNYHA Services By the Numbers:

241 acute care hospitals and over 1,000 other health-related facilities

$4.1 billion of Premier’s $33 billion in purchasing volume

169 Regional Enhancements and 99 active Direct Agreements

$68 million annualized member savings related to our enhancements and direct contracts

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Top 15 Members Based on 2009 Spend

1. North Shore Long Island Jewish Health System- NY

2. Kaleida Health- NY

3. Montefiore Medical Center- NY

4. Mount Sinai Hospital- NY

5. Hackensack University Medical Center- NJ

6. NYC Health and Hospitals Corporation- NY

7. Winthrop University Hospital- NY

8. Health Quest Systems, Inc- NY

9. MediSys Health Network, Inc.- NY

10.Catholic Health System- NY

11.Maimonides Medical Center- NY

12.Lenox Hill Hospital- NY

13.University of Medicine and Dentistry of New Jersey- NJ

14.Cooper Health System- NJ

15.Saint Vincent Catholic Medical Center- NY

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Why Contract with GNYHA Services?

Market facts: Highest concentration of academic teaching hospitals

in the world

Tight geographic intensity of all types of medical facilities

International presence attracts attention and provides a launch pad for new products & services and broader offerings

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How Can You Benefit From Our Program?

Our program spotlights differentiation from other suppliers in the same competitive contract space

Provides greater visibility to wide membership

Lends vendor credibility to a wide membership based on long-established GNYHA reputation for quality contracts

Provides access to top supply chain executives

Permits suppliers to customize program for a targeted regional membership

Supplier Questions:

Will a volume increase overcome a reduced margin by supporting a contract through GNYHA Services?

Do I see the growth for my business?

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Hospital Construction Issues: The Beginning

Do IDo I…

AbandonAbandonRenovateRenovate Tear DownTear Down

AddAdd Build NewBuild New

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Hospital Construction Issues:What Are the Drivers?

Aging facilities

Safety and environmental concerns

Desire to implement evidence-based design features

Need for “different” beds due to population shifts and growth, and the aging baby boomer population

Space requirements for high-tech equipment and electronics

Market competition

Medical arms race (the missile gap)

Several major influences drive health care construction:

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Facilities and Construction Health Care Contracting

Health Care Facilities (The Owner)

SupplierSupplier

Master Planning

Design Effort

Pre-Approved List of Vendors

Strategic Sourcing

Program Execution Plan

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Next Steps GNYHA Services Mission:

Achieve the best pricing on behalf of our member hospitals

Working together we can build an agreement that will give our members best pricing, and you access to a pre-approved list of vendors reviewed by GNYHA Services members

Contact: Mark Victors Director mvictors@gnyha.org (212) 258-5309