ACHIEVEMENT OF SUBSTANTIAL COST REDUCTION THROUGH JOINT PURCHASING BYTHE RADIOLOGY DEPARTMENTS OF A LARGE VERTICALLY INTEGRATED HEALTH-CARE SYSTEM

Rationale and Objectives. The authors sought to lower costs by coordin ating the purchase of equipment, supplies, and services in the radiolo gy departments of a vertically integrated health system formed by the merger of two Of the largest academic medical centers in New England. Methods. The radiology departments at Massachusetts General Hospital a nd Brigham & Women's Hospital formed a cost-reduction task force to ex plore opportunities to jointly decrease costs. Data from the operating budgets of both institutions were collected and analyzed to find spec ific items within the budgets that could yield substantial cost saving s. Results. The project's first phase yielded over $810,000 in reduced costs from a system-wide annual budget of only $7 million for film an d contrast material. Ongoing additional projects suggest that longer t erm contracts that contain steeper discounts with a decreased number o f vendors will result in further decreases in the cost of materials an d supplies. Conclusion. Coordination of purchasing by the radiology me mbers of an integrated delivery system can yield substantial savings.