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AllSpire Health creates new purchasing organization

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Atlantic Health System and Hackensack Meridian Health are listed as two of five health systems which are part of a new group purchasing organization for AllSpire Health Partners.

The new entity, AllSpire Health GPO LLC, was announced Wednesday.

It will help manage expenses and optimize operations by aggregating purchasing volumes, streamlining supplier negotiations and implementing efficiencies across the supply chain, according to a statement.

The group includes Atlantic; Hackensack Meridian (which are listed as two separate entities); Lehigh Valley Health Network in Allentown, Pennsylvania; Reading Health System in Reading, Pennsylvania; and WellSpan Health in York, Pennsylvania.

The partners, which joined forces in 2013, signed an exclusive agreement with a national group purchasing organization provider, HealthTrust, which is based in Brentwood, Tennessee. All members of AllSpire Health GPO will become members of HealthTrust which translates to access to an extensive contract portfolio, according to a statement.

”When we formed AllSpire Health Partners, the goal was to identify and develop clinical improvements and business initiatives that would improve the performance of our members,” said Brian Nester, chair of the AllSpire Health Partners Executive Committee, and president and chief executive officer of Lehigh Valley Health Network, in a statement. “The launch of the AllSpire Health GPO is the exciting culmination of hard work by our members and signifies the strength of the AllSpire Health Partners. This work demonstrates how AllSpire can bring value to our members and our communities.”

AllSpire Health GPO will be governed by one senior executive from each member organization and its operating committee will be supply chain leaders from each organization. The group is headquartered in Lehigh Valley and begin operations in the third quarter of this year.

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