Contact: Daniel Murphy
Release: October 2009
Greensburg, PA, / Moon Township, PA, (October 30, 2009) –
Excela Health and Heritage Valley Health System have formalized a two-year buying collaborative into a new company, Consolidated Supply Chain Services, LLC (CSCS). The new entity begins operations December 1 with the centralization of offices in Cranberry Township.
In September 2007, Excela and Heritage Valley announced a strategic alignment to maximize combined buying opportunities for goods and services. Gary R. Metcalfe who has served as vice president, Supply Chain Management, since the two health systems affiliated in the fall of 2007 with one group purchasing organization, will become the chief executive officer of CSCS.
“An initiative like Consolidated Supply Chain Services exemplifies our ongoing efforts to provide the highest quality healthcare to patients in the communities we serve while doing so in a fiscally responsible way. CSCS will significantly help us reduce costs for goods and services through this strategic regional purchasing coalition,” said Norman F. Mitry, President and CEO of Heritage Valley Health System.
“With so much in common between Excela and Heritage Valley – similar service lines, comparable size and service area, without competitive overlap – partnering makes sound business sense,” noted Kim N. Hollon, Excela’s interim CEO. “As healthcare organizations seek to manage fixed costs and add value to every patient encounter, it is imperative we find those best practice models to ensure success.”
Earlier this year, Heritage Valley joined Excela Health and Conemaugh Health System as partners in MedCare Equipment Company, LLC., a home medical equipment provider serving 14 counties in southwestern Pennsylvania, eastern Ohio and northern West Virginia. As well, Heritage Valley has been sharing information technology solutions with Excela, as both systems strengthen the hardware and software necessary to support electronic health records and clinical documentation.
Initially, Excela and Heritage Valley will share ownership jointly, with an eye toward the future. Metcalfe noted that the creation of a stand-alone supply chain corporation will provide growth opportunities for enhanced buying power through additional hospital participants which can align with CSCS either through equity investment or through affiliate status.
Excela Health, Westmoreland County’s largest employer, joins together 725 medical professionals in 35 specialties to provide health care to Westmoreland County and parts of Fayette and Indiana counties. With a workforce of 4,800, Excela Health offers traditional inpatient care through hospitals in Greensburg, Jeannette, Latrobe and Mount Pleasant, outpatient treatment and specialty services to rank as the region’s third largest health care network.
Heritage Valley Health System provides comprehensive healthcare for residents of Allegheny, Beaver, Butler and Lawrence counties, in Pennsylvania; eastern Ohio; and the panhandle of West Virginia. In partnership with more than 400 physicians, Heritage Valley offers a broad range of medical, surgical and diagnostic services at its two hospitals, Heritage Valley Beaver and Heritage Valley Sewickley; in physician offices; and community satellite facilities. Additional information about Heritage Valley Health System is available online at www.heritagevalley.org.