Ascension forms GPO, continues expansion by acquisition
Ascension Health Alliance, created in January when Ascension Health changed its organizational structure to include a parent holding company, has formed a group purchasing organization—and made moves to continue its acquisition streak.
The 21-state, St. Louis-based system, the largest Catholic healthcare entity in the U.S., announced March 16 that the GPO would operate as part of Resource and Supply Management Group (RSMG), Ascension’s supply-chain subsidiary.
Along with Ascension’s 1,400-plus facilities, RSMG will offer its contract-management services to hospitals and healthcare systems outside the Ascension alliance.
Ascension said in a news release that RSMG will “leverage the significant volume of Ascension Health to influence cost savings while also supporting clinically excellent care. As other entities join the GPO, RSMG’s ability to deliver savings, as an aggregator and a consumer, will be further enhanced.”
The announcement came a day after HHS’ Office of the Inspector General (OIG) gave Ascension the go-ahead to form the GPO.
This was quickly followed by an announcement that Ascension had signed an agreement with six-hospital Daughters of Charity Health System (DCHS) in California to make DCHS a part of Ascension. Then followed an announcement that Ascension is in talks to purchase St. Clare’s Health System in New Jersey, along with news that Ascension is seeking up to $600 million in bonds from the Illinois Finance Authority to assist its entry into the Chicago market. Ascension purchased Arlington Heights, Ill.-based Alexian Brothers Health System in late 2011.
Robert J. Henkel, president and CEO of Ascension Health (the healthcare system, not the holding company), said the formation of the new GPO “demonstrates our commitment to transform healthcare by 2020.”
The 21-state, St. Louis-based system, the largest Catholic healthcare entity in the U.S., announced March 16 that the GPO would operate as part of Resource and Supply Management Group (RSMG), Ascension’s supply-chain subsidiary.
Along with Ascension’s 1,400-plus facilities, RSMG will offer its contract-management services to hospitals and healthcare systems outside the Ascension alliance.
Ascension said in a news release that RSMG will “leverage the significant volume of Ascension Health to influence cost savings while also supporting clinically excellent care. As other entities join the GPO, RSMG’s ability to deliver savings, as an aggregator and a consumer, will be further enhanced.”
The announcement came a day after HHS’ Office of the Inspector General (OIG) gave Ascension the go-ahead to form the GPO.
This was quickly followed by an announcement that Ascension had signed an agreement with six-hospital Daughters of Charity Health System (DCHS) in California to make DCHS a part of Ascension. Then followed an announcement that Ascension is in talks to purchase St. Clare’s Health System in New Jersey, along with news that Ascension is seeking up to $600 million in bonds from the Illinois Finance Authority to assist its entry into the Chicago market. Ascension purchased Arlington Heights, Ill.-based Alexian Brothers Health System in late 2011.
Robert J. Henkel, president and CEO of Ascension Health (the healthcare system, not the holding company), said the formation of the new GPO “demonstrates our commitment to transform healthcare by 2020.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.