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Healthcare organizations across the country continue to grapple with persistent supply chain pressures, from product shortages and ongoing costs to the need for stronger clinical alignment. For  Virginia Commonwealth University (VCU) Health , these challenges were particularly complex given its role as a large academic health system. However, in just two years, VCU Health revamped its supply chain into a data-driven, clinically integrated function aligned with industry best practices. That transformation not only stabilized day-to-day operations and delivered measurable financial impact, but it also earned VCU Health the  Heartbeat of Healthcare Award  for 2025. What follows is a look back at how VCU Health, through vision, collaboration and its partnership with Premier, built a strategic supply chain intended to support patient care and drive value across the health system. A Blueprint for Change When David Davis stepped into the role of Vice President of Supply Chain at VCU Health in 2022, he had a clear vision: create a data-driven supply chain, then build toward clinical integration. “We spent the first year fixing our data, getting all of our information aligned so we could become more efficient,” said Davis. “Once your data is correct, you can run the right analysis, pursue more significant sourcing initiatives and align clinically with your service lines.” Premier was a  key partner  in this journey. Early on, VCU Health adopted a “GPO-first” mindset, pivoting away from plans for in-house sourcing to instead maximize its use of GPO contracts and resources in ways that could better realize their value. VCU Health worked closely with its GPO partner to align initiatives with operational needs. Through GPO collaboratives and advisory groups, VCU Health participated in product discussions and shared learnings with peer health systems. Clinician engagement was another critical component. By collaborating with surgeons and service line leaders through Premier’s performance groups and value analysis processes, VCU Health completed 16 product conversions in the first year. These initiatives balanced cost savings with clinical outcomes, building trust and alignment across the health system. Driving Measurable Impact The results of VCU Health’s supply chain evolution have been far-reaching: Financial Impact:  Realized multi-million-dollar savings across FY24-FY25. Data Integrity:  Improved invoice match accuracy, enabling stronger financial stewardship. Clinical Collaboration:  Collaborative savings achieved through product standardization, particularly in orthopedics, neurosurgery and electrophysiology. National Recognition:  VCU Health earned the 2025 Premier AscenDrive Outstanding Value Analysis Engagement Award, the 2024 Supply Chains of Distinction Award and the 2023 GHXcellence Award. Workforce Growth:  Two major hiring events led to 140+ interviews and strengthened the pipeline of supply chain professionals. In 2024 VCU Health Supply Chain started a Supply Chain Academy for staff education, engagement and promotion opportunities. Supplier Diversity:  Increased spend with diverse and local suppliers year-over-year. Resiliency:  The team rebuilt systems to include pandemic stock reserves, real-time backorder monitoring and proactive substitution protocols. They also contributed to published research on mitigating blood culture bottle usage during shortages. “What I’m most proud of is building a team that’s excited to come to work every day and has the resources they need to succeed. That’s what makes the supply chain strong,” said Davis. Building on the Momentum Winning the 2025 Heartbeat of Healthcare Award has validated the progress VCU Health has made in transforming its supply chain and affirmed the impact of the team’s hard work. For Davis and his team, the award is both a recognition of past accomplishments and a springboard for future innovation. “When you are in the fight every day, dealing with shortages, backorders, even a city-wide water crisis, sometimes the team doesn’t see the fruits of their labor,” said Davis. “This recognition shows them that people outside of supply chain see the value of what they are doing.” VCU Health is now moving into the next phase of its supply chain journey with Premier. Current initiatives include a systemwide conversion to Premier’s SURPASS portfolio and deeper collaboration with Premier’s construction services team to optimize contracts for capital projects. For VCU Health, the supply chain is no longer a back-office function. It’s a strategic driver of enterprise value and high-quality patient care. Their journey demonstrates how collaboration, data and clinical integration can redefine what’s possible – and how their work is truly a ‘heartbeat of healthcare.’ For More: Explore more stories like VCU Health’s by visiting our  success story page , where our members share how they are tackling today’s healthcare challenges.

Building a Data-Driven, Clinically Integrated Supply Chain at VCU Health

Premier submitted  comments  to CMS on the CY 2026 Home Health Prospective Payment System  proposed rule . In its letter, Premier urges CMS to: Advance a final rule that results in home health payment increases for CY 2026; Revise its existing definition of infusion drug administration calendar day to allow for reimbursement of home infusion professional services each day that an infusion drug physically enters the patient’s body, irrespective of whether a skilled professional is in the individual’s home; Take a comprehensive approach to the transfer of health information by focusing on additional efforts to advance interoperability across the care continuum, including Home Health Agencies, via electronic data exchange; and Incorporate interoperability into the Home Health Quality Reporting Program in conjunction with clearly defined standards as well as financial support that incentivizes the adoption of systems that meet interoperability standards.

Premier Submits Comments on CY 2026 Medicare Home Health Proposed Rule 

Key takeaways: The Premier Trailblazer Award honors suppliers that partner effectively with Premier, creating innovative programs and offerings that benefit our members and their patients. The award was formally presented on Wednesday, July 16, during Premier’s 2025 Breakthroughs Conference and Exhibition. Congratulations to Solventum, the recipient of this year’s Trailblazer Award! Each year during our  Breakthroughs Conference and Exhibition , Premier honors a Trailblazer Award winner who is at the forefront of better, smarter and faster healthcare –challenging the status quo to bring about positive transformations in healthcare delivery, outcomes and patient experiences. This prestigious award honors suppliers that partner effectively with our group purchasing organization (GPO) to create programs and offerings that benefit our members and patients. Selection criteria include: Innovation Scalability in the healthcare setting Technology utilization Collaboration and commitment to high-quality, cost-effective care Exceptional customer service This year, we are thrilled to recognize  Solventum  as the 2025 recipient of the prestigious Trailblazer Award. Solventum (formerly 3M Health Care) is a global healthcare company that is dedicated to enabling better, smarter, safer healthcare to improve lives. Solventum creates innovative products and services that touch millions of lives, transform the patient experience and save time for healthcare professionals. Over the years, Solventum has worked with Premier to: Deliver value to Premier members through innovative products and services, including value-based contracting and participation in performance group contracts, as a Premier GPO contracted supplier. Leverage Premier’s  Market Insights  and the  Premier Healthcare Database  – delivering actionable data and advanced analytics to accelerate transformation and improve quality of care. Align with  Premier Applied  Sciences in research studies, data and evidence generation. Exhibit a strong presence with Premier members and deliver exceptional customer service and support. Collaborate with Premier’s Washington, D.C. Advocacy team to inform and support policy that makes a difference for providers, suppliers and patients. Solventum and Premier share a mission of enabling better, smarter, safer healthcare. It is through these collaborative efforts, expertise and vision that we can continue to support meaningful outcomes across the healthcare landscape. Congratulations to Solventum – our 2025 Premier Trailblazer Award winner!

Solventum Recognized as a Healthcare Trailblazer at Breakthroughs 25

Published in STAT+ While GLP-1 drugs have generated excitement for their weight loss potential, the evidence supporting their cost-effectiveness remains limited. In a recent  STAT byline , Premier’s Soumi Saha and Somaieh McMullen propose a new pathway to Medicare coverage of GLP-1 medications used for weight loss. Premier argues that instead of a blanket coverage decision, the Centers for Medicare & Medicaid Services (CMS) should launch a targeted value-based care (VBC) pilot. This model would test GLP-1 coverage for Medicare beneficiaries with obesity and high-cost chronic conditions, using shared savings incentives to align provider accountability with patient outcomes. The pilot would also help build a stronger evidence base by tracking real-world outcomes, such as weight loss maintenance and improvements in chronic disease markers. Premier suggests that this approach could help CMS manage costs, improve care coordination, and make more informed decisions about future Medicare coverage — all while addressing the growing demand for GLP-1s in a fiscally responsible way. Read the full article .

How to evaluate GLP-1s and Medicare costs? Here’s one idea

Ryan M. Nellis

Amy Robbins, MD

Key Takeaways As ThedaCare expanded its value-based care efforts, the organization, like many health systems, faced challenges in consistently capturing patient complexity, managing documentation workflows and supporting clinicians already balancing significant administrative demands. In early 2023, ThedaCare partnered with Premier’s Stanson Health to implement an advanced, AI-enabled coding solution that surfaces real-time documentation advisories. As a result, coding accuracy improved across primary care and key specialties, clinician engagement increased and ThedaCare gained a clearer view of population risk—a strategic asset for better care, planning and outcomes. As a regional health system serving northeast and central Wisconsin,  ThedaCare  is deeply invested in delivering high-quality, cost-effective care. Its accountable care organization (ACO) supports more than 150,000 attributed lives across 11 contracts, including five with both upside and downside risk. But as the organization expanded its value-based care efforts, it faced a critical challenge: accurately capturing the clinical complexity of its patient population to better support proactive care, risk adjustment and financial planning. Despite dedicated efforts in clinical quality and care coordination, providers were grappling with administrative burden and alert fatigue. Existing tools failed to bridge the gap between frontline workflows and the need for precise documentation. ThedaCare needed a smarter, more integrated solution and a partner to help deliver it. A Purposeful Partnership with Premier’s Stanson Health In early 2023, ThedaCare began working with Premier’s Stanson Health to improve its Hierarchical Condition Categories (HCC) coding processes. The partnership focused on deploying Premier’s AI-powered coding optimization solution, a tool designed to identify documentation gaps and surface real-time best practice advisories (BPAs) within the electronic health record (EHR). These BPAs helped clinicians address uncaptured, under-documented or over-documented chronic conditions that impact patient risk scores, all within their existing workflow. Rather than introducing a static system, the solution offered adaptive intelligence. It analyzed clinical documentation in real-time, recommended HCC codes based on chart content and aligned with clinical decision-making without creating extra work for providers. Integration with ThedaCare’s EHR enabled the organization to begin with a phased rollout across payer contracts before expanding further. Premier partnered with ThedaCare to refine the tool’s logic, reduce alert fatigue and respond to clinician feedback throughout implementation. “They weren’t just giving us a solution off the shelf,” said Dr. Mira Iliescu-Levine, Chief Medical Officer of Network Development and Innovation at ThedaCare. “They were refining it with us in real-time.” Building Trust and Engagement at the Front Lines Even with a strong technological foundation, ThedaCare recognized that successful adoption would require clinician engagement and education. “Physicians told us, ‘It’s another alert, another button I have to click,’” said Dr. Iliescu-Levine. “We had to show them how it helps, not just with appropriate coding, but with patient care.” ThedaCare formed a multidisciplinary task force made up of primary care and specialty physicians, coders, nurse documentation specialists and quality leaders. Together, they audited workflows, identified common documentation gaps, and collaborated with Premier to adjust the tool’s logic. At the same time, ThedaCare launched a robust education program, distributing short tip sheets for common conditions, holding interactive training sessions and assigning physician champions to lead code validation efforts. “We realized that just sending PowerPoints or laminated cheat sheets wasn’t going to work,” said Dr. Iliescu-Levine. “We needed to listen to our clinicians, answer their questions and make changes based on their feedback.” Specialists also became more engaged in the process. While primary care remained the foundation for chronic condition coding, specialists contributed by capturing subtler, diagnosis-specific codes that might otherwise have gone unrecognized. To support this, ThedaCare began holding joint training sessions for specialists and primary care teams, encouraging collaboration and shared accountability. Real-World Results Across the System As adoption grew, ThedaCare began to see measurable results. Appropriate code capture improved significantly across internal medicine, family practice and several specialties, especially cardiology and endoscopy. The alerts helped clinicians better stratify clinic visits, prioritize high-risk patients and coordinate care more efficiently. “We used HCC scores to identify patients with diabetes, CHF or CKD who had low risk scores but high actual complexity,” said Dr. Iliescu-Levine. “We brought them in earlier in the year to make sure we weren’t missing anything clinically.” The change in mindset was just as important as the metrics. “Literally, coding became a friend rather than a foe,” said Dr. Iliescu-Levine. “We realized it could help us forecast care, schedule smarter and actually improve clinical outcomes.” Premier’s responsive support, combined with ThedaCare’s commitment to continuous education and cross-functional collaboration, turned what was once a source of frustration into a strategic asset. Coding accuracy improved, clinician engagement grew and the organization gained a more accurate view of patient risk to support its financial and care planning goals. What’s Next: Expanding the Use of AI in Population Health Looking ahead, ThedaCare plans to expand its use of Premier’s HCC coding solutions to cover additional contracts and patient populations, including younger and commercially insured groups. It’s also enhancing its documentation review teams and building out data integration capabilities to further refine risk stratification models. “We’re moving from acute care to chronic care, and from chronic care to wellness,” said Dr. Iliescu-Levine. “That means using every tool we have, AI, human intelligence and community partnerships, to deliver the best possible outcomes.” By integrating advanced AI with frontline clinician expertise and a culture of shared learning, ThedaCare is building a smarter, more sustainable approach to population health, one that’s rooted in both data and humanity. For more on this topic: Learn about what a partnership with  Premier's Stanson Health  can do for your healthcare organization. The insights you need to stay ahead in healthcare: Subscribe to   Premier’s Power Rankings newsletter  and get our experts’ original content delivered to your inbox once a month.

ThedaCare’s Path to Smarter HCC Coding Through AI and Clinician Engagement

Kenneth Scher

Jon Ellsworth

Key Takeaways Facing staffing shortages and fragmented data, Bayhealth struggled with inventory optimization, cost management and aligning procurement with clinical needs. Through a co-management model, Premier embedded its supply chain optimization team at Bayhealth, enhancing workforce stability, improving data visibility and optimizing sourcing and contracting strategies. The partnership delivered more than $8 million in savings in its first year, leading Bayhealth to extend its agreement with Premier through 2028 and expand co-management services to cover expanded end-to-end supply chain functions. Every supply chain tells a story, not just of savings but of strategy, resilience and care delivery. For  Bayhealth , central and southern Delaware’s largest healthcare system, that story took a major step forward in 2023. As a Premier group purchasing organization (GPO) member since 1996, Bayhealth has leveraged national contracts and sourcing tools to effectively help manage costs. Over time, that relationship evolved from traditional GPO engagement into a deeper, strategic supply chain partnership focused on end-to-end performance improvement. To tackle new operational challenges and unlock more robust performance improvement, Bayhealth turned to  Premier’s supply chain optimization team  for support. Together, they embarked on a multi-year partnership designed to enhance supply chain transparency, streamline operations and align procurement with clinical goals. The Challenge: Gaps in Workforce and Data Integrity The lingering impact of the COVID-19 pandemic left Bayhealth struggling to fill key supply chain roles, forcing the system to rely on short-term, costly solutions that weren’t sustainable. Without dedicated in-house expertise, procurement and inventory processes became fragmented, leading to supply shortages, waste and inefficient spending. Equally challenging was the lack of standardized data across Bayhealth’s supply chain. Inconsistent product descriptions and purchasing records made it difficult to track utilization trends, optimize contracts, or align procurement with clinical needs. Without clean, integrated data, supply chain leaders lacked the visibility needed to make strategic, cost-effective decisions. The Solution: A Hands-On, Data-Driven Co-Management Model To address these challenges, Bayhealth and Premier developed a co-management model that embedded Premier’s supply chain optimization team directly within Bayhealth’s operations. These experts filled critical workforce gaps and provided strategic oversight across: Value Analysis:  Ensuring sourcing, contracting and procurement decisions align with clinical, financial and patient care goals. Sourcing & Contracting:  Leveraging Premier’s GPO portfolio, aggregation groups and performance programs to enhance supplier engagement, improve compliance and drive savings. Purchasing:  Optimizing automation, analytics and customer service. Inventory & Logistics:  Implementing leading practices for demand planning, a complete inventory control redesign and improvements in stock asset management. Data Management & Reporting:  Standardizing data for better analytics and decision-making, while developing advanced reporting visualizations to enable strategic insights. A key addition to the team was a Value Analysis Registered Nurse (RN), who helped ensure that product selection and purchasing decisions were clinically driven, balancing cost, quality and patient outcomes. Data analysts provided advanced insights into utilization patterns, while inventory and logistics specialists redesigned Bayhealth’s entire inventory model using a two-bin system and optimized its 70,000 sq/ft warehouse. With Premier’s supply chain optimization team working alongside Bayhealth staff, the system didn’t just implement quick fixes but rather it built a smarter, stronger supply chain capable of driving long-term success and sustainability. Leveraging Data for Smarter Supply Chain Decisions At the core of Bayhealth’s transformation was the implementation of Premier’s advanced data technology. By standardizing product data and integrating analytics into decision-making, Bayhealth was able to: Improve supply visibility and accessibility for clinical staff. Reduce waste by identifying unnecessary or misused products. Enhance demand planning by linking purchasing data to clinical utilization. With clean, structured data, Bayhealth moved from a reactive supply chain approach to a proactive one, ensuring the right products were available at the right time, in the right place, at the right cost. Optimizing Contracts and Strengthening Supplier Partnerships Beyond staffing and data improvements, Premier helped Bayhealth refine its sourcing and contracting strategies, building on a 30-year history as a Premier GPO member. By actively engaging in Premier’s  performance programs , first through Ascend, then AscenDrive and now SURPASS, Bayhealth was able to drive additional value from its purchasing portfolio. These programs collectively yielded more than $7.5 million in verified savings. In addition, Bayhealth tapped into over $2 million in aggregation group savings and secured more than $1.3 million in value through the national portfolio alone. Premier’s embedded team also supported contract optimization efforts by improving vendor alignment and identifying new savings opportunities across multiple categories. A more structured value analysis process helped Bayhealth standardize product selection, strengthen supplier partnerships and negotiate stronger pricing, all while ensuring procurement decisions reflected clinical priorities. By combining Premier’s data-drive insights with its GPO contracting scale, Bayhealth was able to reduce variation, improve compliance and generate sustainable savings across its supply chain. Tangible Improvements in Supply Chain Performance The partnership between Bayhealth and Premier’s supply chain optimization team has already driven measurable results, including: $8 Million in First-Year Savings:  Cost reductions and operational efficiencies delivered tangible financial improvements. Stronger Workforce Stability : With embedded Premier specialists, Bayhealth eliminated workforce gaps and built a high-performing supply chain team. Smarter Inventory Management:  The redesign of 65+ clean supply locations and the off-site warehouse improved stock visibility and reduced waste. Data-Driven Decision-Making:  Standardized product data improved supply tracking, procurement accuracy and inventory control. Enhanced Clinical-Supply Chain Alignment:  A stronger value analysis process ensured that purchasing decisions were driven by cost, quality and patient outcomes. A Foundation for Continuous Improvement The success of Bayhealth’s co-management model led to an early contract renewal with Premier’s supply chain optimization team in February 2025, extending the partnership through 2028. With the renewal, Bayhealth has expanded Premier’s role to oversee all end-to-end supply chain functions. As part of this evolution, Premier’s embedded team has grown to 23.5 full-time experts, reinforcing Bayhealth’s ability to continuously optimize costs, streamline operations and enhance supply chain resilience. By building on its foundation as a GPO member and deepening its partnership with the supply chain optimization team, Bayhealth is creating a smarter, more resilient supply chain built for long-term success in an increasingly complex healthcare environment. Learn More: Explore key healthcare data and technology challenges and discover  specific steps you can take to achieve resiliency, standardization and consistency . See how  Premier’s technology and optimization services  can support your supply chain and performance improvement efforts.

Bayhealth and Premier Extend Supply Chain Partnership, Driving $8M in First-Year Savings

Since the introduction of ChatGPT in 2022, the dialogue surrounding artificial intelligence (AI) has exploded, reflecting its revolutionary potential across industries, including healthcare. However, its promise becomes power only when organizations know how to harness it effectively. To maximize the potential of AI, we must deploy it to fix the existing inefficiencies within healthcare processes. We must also recognize AI not as a replacement for clinicians and employees, but as a powerful tool to augment their capabilities and enhance patient care. Organizations that can adapt and innovate while operating within a structured AI framework will emerge with competitive advantage and as industry leaders, creating meaningful improvements for providers, suppliers, payers and patients alike. AI can be used to sift and parse through mountains of data, glean critical insights, build predictive models, improve disease diagnosis and treatment, optimize care delivery, streamline operations and workflows, and more. This enables increased efficiencies, reduced costs and better outcomes. A new e-book from Premier examines five key AI use cases for solving some of the healthcare industry’s most pressing challenges and insights into how stakeholders can benefit. Click on the following link to download your copy: Get the AI Use Cases

From Hype to Healing: The Future of AI in Healthcare

ISPOR , or The Professional Society for Health Economics and Outcomes Research, accepted six Premier Applied Sciences abstracts for poster presentations at  ISPOR 2025 , held May 13-16 in Canada. Research topics, ranging from asthma-related diagnoses and acute myocardial infarction (AMI) to GLP-1 treatment for obesity, reflect the broad applications of real-world data (RWD) and advanced analytics. Premier Applied Sciences regularly conducts  applied and prospective research , including clinical trials, backed by expert clinicians, data scientists and a vast healthcare repository to tackle complex questions. Congratulations to the Premier authors and all those with work featured at ISPOR 2025. The full list of posters is available online on the  ISPOR website . Learn more: Our Applied Sciences team has a wealth of experience in areas such as academia, healthcare, government, pharmaceutical and technology. As a leading research and analytics partner, we help organizations improve the overall quality, safety and cost-effectiveness of care. Learn how you can put our  expert staff  and best-in-class, HIPAA-compliant database to work.

Premier Research: Six Studies Highlighted at ISPOR 2025 

Chendi Cui, Ph.D., Principal, Research Scientist with  Premier Applied Sciences , is a 2025 recipient of the  40 Under 40 in Cancer Award . The 40 Under 40 in Cancer Awards identify and recognize contributions made across the field of cancer by rising stars and emerging leaders under the age of 40. Recipients are identified as some of the nation's most promising young oncology professionals, and the awards celebrate their work to improve the lives of those affected by cancer.  Cui specializes in the application of advanced epidemiologic methodology and biostatistics techniques in areas such as Alzheimer's disease, cancer, cardiovascular disease and maternal health. She has substantial experience in health insurance claims databases, electronic medical records and laboratory databases.  Prior to joining Premier, Cui worked for health insurance companies in the areas of health services research and advanced analytics. She has led multiple retrospective and prospective research studies and clinical program evaluations, built machine learning models to predict health outcomes, leveraged data to improve quality of care, and informed business decisions with data.  Cui's work has been published in peer-reviewed journals and presented at international conferences on medical and healthcare research. Cui graduated from Peking University with a medical degree in preventive medicine. She earned her master's degree and Ph.D. in epidemiology from the University of Pittsburgh. The 40 Under 40 in Cancer awards are hosted by The Association for Value-Based Cancer Care (AVBCC), The National Community Oncology Dispensing Association (NCODA), Swim Across America, ONCare Alliance, FFF Enterprises and Cancer Care .  Learn more about the 40 Under 40 in Cancer Awards.

Premier Scientist Wins 40 Under 40 in Cancer Award 

Inside the Newsroom 

Board of Directors 

The Centers for Medicare & Medicaid Services (CMS) recently released the FY2022 Inpatient Prospective Payment System (IPPS) and Long Term Care Hospital (LTCH) Proposed Rule. Watch this on-demand webinar to learn more about the new payment and quality policies health systems could face starting in FY2022.

On-Demand Webinar: Reviewing the FY2022 IPPS Proposed Rule

Technology-Driven Healthcare Performance Improvement. At Premier, we enable healthcare organizations with cutting-edge data, technology, advisory services and group purchasing to enable better, smarter and faster care.

Premier - Technology-Driven Healthcare Performance Improvement

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