Advocate Health Care Expands MedAssets Relationship to Accelerate Cost Reduction Initiatives

Extension of GPO Agreement, Use of Service Line Analytics and Provision of Clinical Consulting Services to Support Sustainable Performance Improvement

ATLANTA--(BUSINESS WIRE)-- MedAssets today announced that Advocate Health Care (Advocate), the largest health system in Illinois, has chosen the MedAssets spend and clinical resource management solutions to accelerate its cost reduction initiatives. The agreement includes use of Service Line Analytics, along with Clinical Cost Management consulting services and proprietary performance management technologies to provide Advocate with the operational insight required to sustain long-term recognized gains. Advocate expects to realize $25 million in annual, reoccurring savings, which contribute to the health system’s ongoing efforts to deliver the best supply chain value and health care.

Actionable Analytics to Manage Clinical Expenses

Plans call for MedAssets to utilize its Service Line Analytics tool to link reimbursement, supply cost, utilization and clinical resource data for comparative analysis on implantable medical devices and other physician preference items to capture the total cost of care delivery. Advocate and MedAssets will utilize the comprehensive and accurate comparative data to work with Advocate clinicians, hospital management and supply chain staff to present insightful information on cost drivers and assess savings opportunities.

“As the largest health system in the Chicago area with the state’s largest primary care physician network, we want to exemplify how hospitals and health systems can partner with physicians to support operating efficiencies without compromising quality,” said Tom Lubotsky, vice president, supply chain and clinical resource management, Advocate Health Care. “With the support of MedAssets end-to-end cost management capabilities, we can expand our expense management focus while enabling our physicians to continue to receive the best value products to deliver high-quality health care.”

Renewed GPO Agreement

Advocate also has extended its group purchasing agreement with MedAssets. MedAssets manages $41 billion in annual healthcare provider spending and leverages contemporary sourcing strategies, such as pre-commitment programs, to extend a comprehensive contract portfolio offering some of the best prices in the industry.

“We are honored to have such a long-standing and meaningful relationship with Advocate,” said John Bardis, chairman, president and chief executive officer, MedAssets. “Our integrated use of data and analytical tools, expert clinical consulting services and strategic sourcing of supplies and purchased services supports our vision for a total cost management model appropriate to the evolving needs of today’s healthcare system. With incredible margin pressures underway, healthcare providers need to do more to manage the business aspects of care delivery. Our breadth of capabilities helps to drive down operating costs by offering innovative solutions that address untapped areas of costs and support organizational change that drives sustainable financial improvement.”

About Advocate Health Care

Advocate Health Care, one of the nation's top ten health systems based on clinical performance, is the largest health system in Illinois and one of the largest health care providers in the Midwest. Advocate operates more than 250 sites of care, including 10 acute care hospitals, two integrated children's hospitals, five Level I trauma centers, two Level II trauma centers, one of the area's largest home health care companies and one of the region's largest medical groups. Advocate Health Care trains more primary care physicians and residents at its three major teaching hospitals than any other health system in the state. As a not-for-profit, mission-based health system affiliated with the Evangelical Lutheran Church in America and the United Church of Christ, Advocate contributed $462 million in charitable care and services to communities across the Chicago area in 2009. For more information, please visit

About MedAssets

MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve financial strength by implementing spend management and revenue cycle management solutions that help control cost, improve margins and cash flow, increase regulatory compliance and optimize operational efficiency. MedAssets serves more than 180 health systems, 4,000 hospitals and 90,000 non-acute healthcare providers. For more information, please visit



Media Contact:
Robin Wrinn, 678-624-7420
[email protected]
Investor Contact:
Robert Borchert, 678-248-8194
[email protected]

KEYWORDS:   United States  North America  Georgia

INDUSTRY KEYWORDS:   Technology  Data Management  Health  Professional Services  Finance  General Health