Premier announces new initiative to decrease spend, increase value in return for commitment

Attention Suppliers: There will be winners and losers in this new contracting strategy by Premier. It is very simple math for the IDN, greater commitment gets greater contract value.

For the Supplier, it’s a little dicer, right? If you are on the inside you get more volume, if not you get less. The scary part for Suppliers is what if they belive they would be awarded those units anyway?

David A. Hargraves, Senior Vice President of Supply Chain at Premier explains the new program: “This program is a way for Premier to provide a contracting platform for our most committed members based on their ability to drive standardization and transform the supply chain … scaling these supply chain best practices across our alliance will provide a new benefit to both our members and our contracted suppliers.”

It will be interesting to see how this program is differentiated from ASCEND. It is very clear to me that commitment by IDNs always gets more value from Suppliers and it looks like that is exactly what Premier is trying to harness here.

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