As hospitals move more quickly toward managed care, the impact of industry changes is taking its toll. Networks and systems are rapidly being formed throughout the industry. One advantage of network formation is group purchasing and system-wide contract development. Bundling large volume contracts can produce lower prices for the individual hospitals. Now the challenge for individual hospitals is "where do we go from here?" In many cases, the "system" performs the contract function and the price of most product lines has already been reduced. This article looks at how Alta Bates Hospital in Berkley, CA, continues its efforts to reduce costs as an individual hospital within a larger system, using supply data base information.
Benchmarking California