Large Provider’s MedSurg Distribution Contracts Renegotiated; $2.1M in Annual Savings and 8% Savings in Total Spend Identified

Situation

A large provider in Tennessee was procuring general MedSurg products through 5 different vendors, although they had a contract with a primary distributor to channel 95% of all distribution through them.

Approach

Given AArete’s market intelligence, AArete was able to renegotiate the contract with the primary distributor to lower markups and increase fee shares on all purchases through the primary distributor.

Results

$2.1M in annual savings and 8% savings on total spend were achieved by consolidating spend with the primary distributor, through increasing utilization of the distributor’s preferred products.