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CommonSpirit Health Chooses Premier Inc. to Clinically Integrate its Newly Merged Supply Chain

Premier performance improvement technology and services to support 137-hospital system in enhancing operational efficiencies for enterprise.

CHARLOTTE, N.C. — CommonSpirit Health will be partnering with Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, to achieve operational excellence as it undergoes the complex integration of its newly-merged health system, which was formed through the alignment of Catholic Health Initiatives (CHI) and Dignity Health in February 2019.

This new partnership will allow CommonSpirit Health to tap into Premier’s comprehensive offerings. While historically CHI has used Premier’s performance improvement technologies and services and Dignity Health has accessed Premier’s supply chain services, CommonSpirit Health will be fully converting to Premier’s group purchasing organization (GPO) and will leverage Premier technology and a focused team of experts to strengthen and accelerate the execution of a clinically integrated supply chain.

“We have made great strides to create a future-forward organization that is improving the health of the communities we serve across 21 states. This selection is a key milestone in the progress we have made to become one health system over the past year,” Daniel Morissette, Senior Executive Vice President/Chief Financial Officer of CommonSpirit Health. “By partnering with Premier, we will create the strong operational foundation our physicians, nurses and staff need so they can focus on giving the best care to every patient we serve.”

Premier experts will help lead the optimization of insights and solutions derived from its performance improvement technology and analytics. By integrating CommonSpirit Health’s supply, pharmacy and purchased services spend with clinical utilization trends and outcomes, Premier will pinpoint operational and clinical alignment improvement opportunities with the largest return on investment while maintaining optimal patient outcomes.

“CommonSpirit Health and Premier share a vision for the continued evolution of healthcare,” said Michael J. Alkire, President of Premier. “We understand the required organizational change to realize this vision can be difficult to navigate without the right strategic partners. Change is also necessary to enable the mission via growth, especially in the context of merging organizations leveraging scale, efficiencies and strategy to drive and sustain financial and operational success. We’re looking forward to our partnership with CommonSpirit Health and the direct impact it will have on their patients.”

The partnership is not expected to materially impact fiscal year 2020 financial results. The total financial impact of the agreement was not disclosed.

CommonSpirit Health is a nonprofit, Catholic health system dedicated to advancing health for all people. It was founded in February 2019 by CHI and Dignity Health. CommonSpirit Health is committed to creating healthier communities, delivering exceptional patient care, and ensuring every person has access to quality healthcare. With its national office in Chicago and a team of approximately 150,000 employees and 25,000 physicians and advanced practice clinicians, CommonSpirit Health operates 137 hospitals and more than 700 care sites across 21 states. In fiscal year 2019, CommonSpirit Health had combined revenues of nearly $29 billion and provided $4.45 billion in charity care, community benefit, and unreimbursed government programs.

Forward-looking statements

Matters discussed in this release that are not statements of historical or current facts, as discussed herein, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the “Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC and available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

About Premier, Inc.

Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,000 U.S. hospitals and health systems and approximately 250,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.

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