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University of Pittsburgh Medical Center Further Enhances Internal Controls Processes With MedAssets' Supply Chain Technology

Posted on: Tuesday, 15 August 2006, 15:01 CDT

The University of Pittsburgh Medical Center based in Pittsburgh, Penn., announced today its success to further drive corporate transparency and internal controls process enhancements using supply chain management technology offered by MedAssets Analytical Systems. Although not required by law, UPMC, a not-for-profit organization, initiated a project in June 2004 to comply with regulations set forth by the Sarbanes-Oxley Act of 2002. Subsequently, UPMC's supply chain function, a department managing an approximately $1 billion supply spend, was identified as an area of focus for improving data integrity, streamlining business processes, and enhancing internal controls in financial reporting.

"The hospital supply chain significantly impacts the financial statements of any healthcare organization," stated Robert DeMichiei, chief financial officer, UPMC. "When UPMC proactively began the endeavor to comply with SOX, establishing order in our procurement processes and reporting capabilities was a high priority. Having visibility and transparency of our supply spend across multiple facilities is paramount to the internal controls process. We must be able to document that we are paying the correct price, for the correct item, for every transaction."

MedAssets Analytical Systems' Client Item File Services standardizes and normalizes the supply chain data in 19 facilities across the UPMC enterprise. By continuously cleansing the supply item file, a database housing items routinely purchased by UPMC, the foundation for accurate purchasing and analytics is established. MedAssets' Strategic Information service and technology allows UPMC to aggregate the normalized purchasing data across multiple facilities, analyze purchasing activities, and make informed and accurate decisions to reduce costs, streamline business processes, and report on total supply procurement across the enterprise.

"MedAssets' technology gives a true picture of off-contract and on-contract supply spend, which enables us to identify areas for improved cost savings," said Jim Szilagy, chief supply chain officer, UPMC. "In addition, the tools automate what were once very time intensive and tedious tasks such as comparing invoices to purchase orders to ensure the correct price is paid for each item."

A customized, Web-based contract catalog warehouses UPMC's entire contract portfolio, including all local, regional and national agreements. An executive dashboard provides key performance metrics to consistently and accurately measure supply chain performance.

"UPMC once again reinforces its position as an industry leader by voluntarily becoming SOX compliant and acknowledging the financial impact of the supply chain," said Mike Cassady, president, MedAssets Analytical Systems. "We provide healthcare organizations such as UPMC with credible data and the tools to use the data to guide decision making and business process improvements."

About University of Pittsburgh Medical Center

UPMC is one of the leading non-profit medical centers in the United States. With nearly $6 billion in assets and more than 40,000 employees, it is the largest employer in western Pennsylvania. UPMC spans the full spectrum of health care delivery and financing with its network of 19 tertiary, specialty and community hospitals, 400 outpatient sites and doctors' offices, retirement and long-term care facilities and a successful insurance division. UPMC is ranked 14th in the nation according to the 2006 U.S. News & World Report "America's Best Hospitals" survey, earning a place on the magazine's prestigious Honor Roll. It is closely affiliated with the University of Pittsburgh Schools of the Health Sciences, which attract more than $400 million annually in National Institutes of Health funding.

About MedAssets

MedAssets, headquartered in Atlanta, Georgia, improves healthcare providers' margin and cash flow through revenue cycle and supply chain initiatives as well as decision support technology and services. As a strategic business partner, MedAssets can replace multiple vendors and decrease supply costs by 3-10% and increase net patient revenue by 1-3%. MedAssets Net Revenue Systems provides best-of-breed revenue solutions including defensible pricing, charge capturing, and ongoing chargemaster management tools, all of which have been Peer Reviewed by the Healthcare Financial Management Association. MedAssets Net Revenue Systems also offers denials management and a tool to link supply cost data with charge data. MedAssets Supply Chain Systems is one of the fastest growing group purchasing organizations in the U.S. and builds customized solutions encompassing procurement of common medical supplies, pharmaceuticals, physician preference supplies, food and nutrition items, and capital equipment. The newly formed MedAssets Analytical Systems offers supply chain analytics and decision support tools while clinical and operational consulting services are provided through MedAssets' subsidiary, Aspen Healthcare Metrics. Avega Health Systems, a subsidiary of MedAssets, ranked "Best in KLAS" in Business Decision Support - KLAS Enterprises, LLC 2005. For more information about MedAssets go to www.medassets.com or contact Gary Johnson, corporate senior vice president of Marketing and Marketing Services, 100 North Point Center East, Suite 200, Alpharetta, GA 30022.

Source: Business Wire

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