A subsidiary of Universal Health Services, Inc. owns and operates over 150 facilities nationwide representing in excess of 5,000 licensed beds and 35,000 employees. The UHS supply chain mission is to obtain supplies, equipment, and services by the most efficient and cost effective manner in reducing expenses and providing the best quality and safest products to our patients.
UHS utilizes a business model of centralized procurement and invoice payment for capital equipment purchases and leases, and decentralized procurement and invoice payment for supplies and purchased services.
UHS is a member of the Healthtrust Purchasing Group (HPG), Nashville, TN and is a very strong supporter of contract compliance. In those commodity areas where multiple vendors have been awarded contracts, UHS will evaluate additional cost-savings incentives to standardize on one vendor utilizing Letters of Commitment, SIP agreements, S2 agreements, and Letters of Participation. For those commodities not covered under HPG contract, UHS will initiate contract negotiations with non-GPO vendors. All newly introduced product must first be reviewed and approved by both facility and executive value analysis committees.
UHS Supply Chain Goals
To utilize national and local agreements at the highest level of compliance
To continually identify savings opportunities for all non-labor expenses through cost reduction, standardization and reduced utilization.
$50M reduction of non-labor expenses by the end of 2011.