Tenet Healthcare Corporation (NYSE: THC) today announced that the subsidiaries operating its 52 hospitals have outsourced their materials management and procurement functions to Broadlane, the nation’s largest and fastest growing provider of hospital supply chain services. Beginning Jan. 1, 2009, and continuing through early 2010, Tenet’s approximately 200 materials management and procurement employees will become Broadlane employees.
In September, Tenet signed a seven-year agreement with Broadlane to manage its approximate $1.5 billion in annual spend.
“Since our relationship with Broadlane began in 1999, we have seen tremendous savings in supply spend at all of our hospitals,” said Stephen L. Newman, M.D., chief operating officer, Tenet Healthcare Corporation. “With this new outsourcing arrangement, we anticipate realizing even greater savings.”
Tenet has extended and expanded its relationship with Broadlane with the following goals and expectations:
— Accelerate the pace and breadth of cost reduction initiatives;
— Reduce variation in practices and improve operational performance;
— Improve inventory performance and cash flow; and
— Provide exemplary customer service.
Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related ancillary health care businesses, which include ambulatory surgery centers and diagnostic imaging centers. Tenet is committed to providing high quality care to patients in the communities we serve. Tenet can be found on the World Wide Web at www.tenethealth.com.
Some of the statements in this release may constitute forward-looking statements. Such statements are based on our current expectations and could be affected by numerous factors and are subject to various risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended Dec. 31, 2007, our quarterly reports on Form 10-Q and periodic reports on Form 8-K. Do not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.
Comments