MedAssets (NASDAQ: MDAS) today announced that University Health System (UHS), the third largest public health system in Texas, is among a growing list of healthcare organizations across the country to enlist the company's expertise in total cost management and proprietary technology tools for facility construction projects.
UHS utilized MedAssets Capital and Construction Solutions to make significant improvements to its hospital and downtown campuses in San Antonio, including two new facilities: a 12-story, 420-bed patient tower and a 6-story outpatient facility. Since the December 2010 groundbreaking at the downtown campus, MedAssets contract management and technology-enabled services have enabled UHS to save more than 12.5 percent on construction materials and equipment.
“Our long-standing supply chain relationship with MedAssets solidified our decision to engage their team in our extensive $932 million expansion initiative,” said Mark Webb, senior vice president, Facilities Administration, University Health System. “Expanding our organizational capacity is critical to our future financial viability. Obtaining outside expertise in managing this significant capital investment has already demonstrated its value.”
Health Reform Shift to Outpatient Services Creating Uptick in Facility Construction
One impact of healthcare reform is the shift of care away from hospitals to more affordable outpatient settings due to reimbursement strategies designed to promote preventive care and a more integrated, multi-disciplinary care system. As a result, industry experts predict demand for outpatient services will grow faster than inpatient services. The forecasting firm Sg2, for example, expects inpatient service utilization will decrease by 1.9 percent between 2010 and 2020, while outpatient utilization will increase by 30 percent during the same period. Moreover, in a recent survey report by The American Society for Healthcare Engineering, respondents cited the following types of construction projects most frequently for future plans: emergency departments, outpatient facilities, medical office building expansions, primary care clinics and urgent care centers.
Integrated Approach with Cloud-Based Technology
“We are seeing an upward trend of mergers and acquisitions, which requires consolidation of existing space. It is becoming more important for our healthcare providers to contain costs related to aging infrastructure and expansion,” said Cheryl Stoddard, vice president, Construction Solutions, MedAssets. “Our front-end planning technology allows providers to monitor operational and financial performance across their system.”
MedAssets continues to expand its comprehensive set of cost management capabilities, and has experienced a 50 percent increase in demand for its Capital and Construction solutions year-over-year. These solutions provide an integrated delivery approach that supports more informed purchasing decisions and leverages the company’s group purchasing contract agreements with clinical and non-clinical equipment manufacturers. A cloud-based technology portal also enables providers to track real-time savings and more efficient project management. Recent new construction agreements include:
“As a leading provider of total cost management solutions, MedAssets is deeply involved in multiple ways to help acute care organizations evolve business models and improve efficiencies,” said John Bardis, chairman, president and chief executive officer, MedAssets. “We are gratified so many healthcare organizations are entrusting us to help gain greater fiscal control over construction projects that are fundamental to long-term strategic goals and to remain competitive as the nation’s healthcare system delivery structure changes dramatically.”
About University Health System
Owned by the people of Bexar County, University Health System (UHS) is a nationally recognized academic medical center in partnership with UT Medicine San Antonio. UHS is Bexar County and South Texas’ first and only health system to earn Magnet status, the gold standard when it comes to quality nursing care. University Hospital, currently operating 489 beds, is a comprehensive Level I Trauma Center and certified Primary Stroke Center. University Health System also includes a network of 16 community clinics focused on primary, specialty, and preventive health services. For more information, see www.universityhealthsystem.com.
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 4,200 hospitals and 100,000 non-acute healthcare providers. The company currently manages $48 billion in supply spend and touches over $340 billion in gross patient revenue annually through its revenue cycle solutions. For more information, go to www.medassets.com.