March 29, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Mayo officials tout benefits of purchasing alliance> Patients will save too, says Cushing

DOVER-FOXCROFT — By purchasing in volume with other hospitals across the state, Mayo Regional Hospital saved $188,000 last year. These savings were passed on to patients, say officials.

John Cushing, materials management director at the hospital, said the institution participates in a purchase agreement managed by Quorum Health Resources that allows for the savings in bulk purchasing.

By joining a major purchasing alliance, Mayo Regional Hospital and about 1,800 other hospitals nationwide saved significantly on a variety of purchases.

Cushing said billions of dollars worth of purchases are made through the alliance with manufacturers, rather than vendors. This includes food, medical supplies, capital equipment, X-ray film, and pharmaceutical and office supplies, he said.

As an example of the savings, Cushing said knee surgery this year would cost about 30 percent less than last year.”I think the savings this next year will be far superior than anything we’ve ever seen,” he said. In addition, many of the contracts are good for up to seven years without increases.

Mayo Regional Hospital and its subsidiary corporation recorded a consolidated gain of $72,485 for the year to date.

According to Dennis Allen, chief financial officer, the hospital ended in January with 156 admissions, 16 births, 174 surgical procedures and 750 emergency room visits.

Emergency room visits were down, which could indicate a positive trend, since it could mean that more people were seeing a primary care physician for treatment, Allen said.

Allen said the impact from the state’s tax and match program would be less than hospital officials had anticipated. He said the Maine Hospital Association’s latest proposal recommended that the impact would be $208,000 this year and $254,000 for 1998 when the program is expected to expire. The proposal has been approved by the King administration and has been sent to the Legislature’s Appropriations Committee, he said.


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