(September 4, 2009) - Savannah's two hospital systems are
partnering to purchase common medical and surgical supplies in an
effort to reduce costs.
The agreement is the direct result of the two systems coming
together two years ago to find solutions to challenges they both
face. Purchasing supplies together could lead to improvements in
the delivery of healthcare.
The U.S. Department of Justice approved the agreement
"This shows an unprecedented level of cooperation between St.
Joseph's/Candler and Memorial that will benefit patients in our
region," said Paul P. Hinchey, president and CEO of St.
Josephs'/Candler. It will allow us to maintain community outreach
programs that are threatened by Medicaid and Medicare cuts that are
extremely important to many disenfranchised groups now trying to
"I am pleased to learn that the Department of Justice has
approved our request. I believe that this joint purchasing
agreement will help us to continue to provide the highest level of
quality healthcare to our community. We look forward to working
with our colleagues at St. Joseph's Candler on this important
endeavor," said Phillip S. Schaengold, J.D., MBA, president and CEO
of Memorial Health.
Under the proposed agreement, Memorial and St. Joseph's/Candler
would jointly evaluate medical and surgical products, designate
suppliers and negotiate prices and other terms with them.
Both health systems, like others around the country, are facing
challenges in fulfilling their missions to the community in light
of declining governmental reimbursement.
This backdrop served as the impetus for discussion that began in
2007 on areas of collaboration. At the same time, we've avoided any
topics that would adversely affect the competitiveness of the two
The healthcare systems believe that this collaborative effort
furthers their charitable mission to provide quality and cost
efficient healthcare to the community.
Memorial University Medical Center is a two-state healthcare
organization serving a 35-county area in southeast Georgia and
southern South Carolina. The system includes its flagship hospital,
a 530-bed academic medical center; Memorial primary
and specialty care physician networks; a major medical
education program; business and
industry services; and NurseOne,
a 24-hour call center.