Pivoting to Success: Beebe Healthcare’s Path to Savings, Value and Growth with Premier

Key Takeaways:

• Like many other healthcare providers nationwide, Beebe Healthcare faced financial instability, workforce shortages and operational inefficiencies following the COVID-19 pandemic.
• Beebe partnered with Premier to launch and support the Pivot Program, a collaborative initiative focused on workforce optimization, supply chain management and pharmacy operations, supported by data-driven technology.
• The program generated $15 million in savings in FY 2024, with projected incremental gains of $21.7 million in FY 2025, alongside workforce improvements, reduced pharmacy expenses and sustainable operational changes embedded into Beebe’s culture.

Beebe Healthcare, a not-for-profit health system serving patients and communities in Delaware, encountered significant challenges following the COVID-19 pandemic. As the only independent hospital system in the region, Beebe needed to manage rapid community growth, a shrinking workforce, rising labor costs and operational inefficiencies.

“We were determined to maintain our independence and continue providing high-quality care to our community,” said Dr. David Tam, CEO of Beebe. “But we couldn’t do it alone. We needed a partner who was invested in our success.”

The Pivot Program: A Comprehensive Plan with Tangible Outcomes

To overcome these challenges, Beebe partnered with Premier to support the Pivot Program—a comprehensive, enterprise-wide initiative aimed at restoring financial health, streamlining operations and driving sustainable improvements.

The program identified $33 million in margin improvement opportunities across multiple workstreams, including workforce optimization, supply chain management and pharmacy operations. With dedicated advisory, member field services and subject matter experts, Premier’s on-site presence at Beebe helped ensure that these initiatives were executed collaboratively and with long-term, sustainable success in mind.

“We didn’t just receive a list of recommendations—we had partners sitting alongside us every day, ensuring we followed through,” said Dr. Tam. “Premier gave us the tools and the confidence to make well-informed, strategic moves that would set us on a path to long-term success.”

With 62 initiatives implemented, Beebe achieved $15 million in savings in FY 2024 and expects $21.7 million in additional gains for FY 2025.

Key Initiatives Driving Beebe’s Success

Workforce Optimization: Managing Resources Efficiently

Like many health systems, Beebe struggled with rising overtime and agency costs that strained its budget. Premier worked with Beebe to introduce new staffing grids that aligned workforce capacity with patient volume in real time.

The emergency department at Beebe’s Lewes and South Coastal campuses saw significant improvements from this workforce optimization effort. Revised staffing plans enabled more efficient coverage, reducing overtime and premium pay usage. These adjustments saved over $500,000, while maintaining high-quality care standards.

“This wasn’t just about cutting costs,” Dr. Tam explained. “It was about empowering our staff and giving them the support they need to deliver excellent care, even as our patient volume grows.”

Supply Chain and Pharmacy Transformation: Cost Control Meets Quality

Premier’s supply chain consultants played a crucial role in reimagining Beebe’s supply chain operations. The Pivot Program introduced a value analysis process - aligning clinical and supply chain teams with data around cost, quality, safety, outcomes and reimbursement to aid in product evaluations and enable smarter purchasing decisions – all while helping the system maintain quality patient care.

Identifying unnecessary supply usage and standardizing product selection across departments helped reduce variability ensure cost-effective procurement and support strong patient outcomes.

“Thanks to Premier and Nexera, our teams understand the full impact of supply utilization,” said Dr. Tam. “We’ve achieved significant savings without sacrificing the quality of care.”

The Beebe pharmacy team also achieved significant improvements. Inventory optimization alone saved $1.4 million, while biosimilar conversions generated an additional $62,000 in savings. Beebe further enhanced efficiency by implementing IV push programs and new compounding protocols, freeing up resources for reinvestments in the community and patient care.

Technology in Action: Embedding Data into Decision-Making

Premier’s technology tools were central to fostering a data-driven, performance improvement culture at Beebe. Solutions like OperationsAdvisor® and INsights allowed leadership to benchmark operational performance against peers, track productivity trends and identify areas for improvement.

For example, OperationsAdvisor helped Beebe’s leadership monitor labor productivity by pay period, allowing managers to adjust staffing quickly in response to patient demand. INsights provided real-time supply expense tracking, ensuring that cost-saving measures were implemented without impacting patient care.

“Premier’s technology opened our eyes to new opportunities, guiding us toward impactful solutions that are reshaping our organization,” said Dr. Tam.

These data insights also laid the groundwork for Beebe’s upcoming transition to a new electronic medical record (EMR) system, scheduled to go live in 2025. With the new EMR, Beebe will be able to integrate clinical and operational data seamlessly, further enhancing decision-making capabilities.

Cultural Transformation and Leadership Development: A Lasting Impact

Beyond operational improvements, the Pivot Program catalyzed a cultural transformation within Beebe. Premier’s experts worked side-by-side with Beebe’s leadership team, cultivating a proactive, shared accountability culture across the organization. Leadership was empowered to own specific workstreams, driving change from within.

With Premier’s hands-on advisory support, Beebe was able to adapt swiftly to shifting demands, balancing immediate needs with sustainable strategies that kept the organization’s long-term goals in focus.

“Premier’s team feels like an extension of Beebe,” said Diane Taylor, Senior Vice President, Chief Strategy Officer, and Chief of Staff at Beebe. “They weren’t just advisors—they were partners fully committed to our success.”

The impact of this collaboration is reflected in Beebe’s ability to hardwire accountability into its operations. Regular performance reviews and data-driven insights have become integral to daily operations, ensuring that progress is sustained and optimized long after the program’s initial implementation.

A Vision for Continued Growth

Through its collaboration with Premier, Beebe has built a foundation for sustainable growth, achieving financial stability and operational excellence. Areas of focus within the Pivot Program—ranging from pharmacy improvements to workforce optimization—have contributed to a more resilient healthcare organization.

“Premier’s team didn’t just tell us what to do—they walked with us every step of the way,” said Dr. Tam. “Thanks to this partnership, we’ve made tough decisions, embraced change and built a future we’re proud of.”

Looking ahead, Beebe is positioned to meet future challenges head on by enhancing leadership capacity, exploring participation in a Medicare Shared Savings Program (MSSP) ACO, and continuing to align clinical and operational strategies with community needs. With these efforts, Beebe is not only poised for future growth, but also committed to delivering high-quality care for years to come.

For more:

• Learn more about Premier’s solutions.
• See how Premier's advisory experts can help your organization unlock efficiency and improve outcomes with a Healthcare Rapid Assessment. We work with healthcare organizations to quickly pinpoint areas of improvement and deliver actionable insights for meaningful change.

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.