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Keith Callahan, Senior Vice President of Supply & Service Resource Management at Dignity Health, was the guest of ANAE for our monthly Supply Chain Leader Series. Mr. Callahan was very generous with his time in answering questions about how a supplier can better understand and navigate Dignity Health for contract success.
Dignity Health operates 39 hospitals in California, Nevada and Arizona, and is in a joint venture with 150 more hospitals – making it the 5th largest IDN in the nation. In addition to the hospitals, Dignity Health has over 1,200 Ambulatory Surgery Centers, 350 Radiology Centers and over 4,000 affiliated or owned Physician Offices.
Dignity Health’s net patient revenue is over $14 billion, with supply chain spend topping $1.8 billion in supplies and another $1.2 billion in purchased services.
In anticipation for a changing care setting, Dignity Health recently purchased U.S. HealthWorks, which will add greatly to its non-acute growth rate. U.S. HealthWorks cares for Workers Compensation cases in 16 states, and has greatly widened Dignity Health’s care footprint.
Mr. Callahan explained how his responsibilities are divided into verticals such as I.T., Commodities and Physician Preference Items. He also spoke about the best way for account executives to contract with Dignity Health, which ultimately depends on your product line.
Dignity Health is a shareholder of Premier and a founding member of a Regional Purchasing Coalition called Committed Contracting Group (formerly Catholic Contracting Group). Dignity Health also founded its own GPO called Dignity Health Purchasing Network (DHPN) and has engaged Shared Clarity.
As a rule of thumb, Mr. Callahan noted that commodities were well suited for Premier contracts, while Physician Preference Items will be contracted through Shared Clarity. CCG is best suited for opportunities that can deliver Dignity Health sole source agreements or move significant market share. DHPN is best accessed for branded items that are trying to reach the joint ventures Dignity Health is in and to the Physician offices.