Gaining Control of Supply Chain Spend

Alliance Healthcare Partners and Prodigo Solutions aim to bring supply chain cost savings to more U.S. health systems

PittsburghJuly 17, 2014Alliance Healthcare Partners announced that it invested in and took majority ownership of Prodigo Solutions, Inc., an integrated supply chain solutions company that allows hospitals to gain control of supply chain spend through contract compliance and automation. The move is designed to bring Prodigo’s potential for significant supply chain cost savings to more U.S. healthcare providers while freeing up more resources for patient care.

Alliance Healthcare Partners is going to work with the current Prodigo leadership team in Cranberry, Pa., to accelerate the company’s market penetration. Prodigo’s leadership intends to focus on augmenting the company’s existing suite of products with new applications, functionalities, and service offerings that further enhance the user experience, and maximize cost savings for new and existing healthcare provider clients.

“We were attracted to the investment in Prodigo because of the incredible market demand for supply chain solutions that are easy to use, while producing both measurable and substantial cost savings,” said Joe Mayernik, partner in Alliance Healthcare Partners and executive chairman of the Prodigo Solutions board. “Our thorough vetting of Prodigo found the consumer-friendly user experience it offered and the health system feedback is quite positive. Prodigo’s offering is unique in that it was created, designed, and implemented by healthcare supply chain professionals inside one of the nation’s largest and most successful healthcare systems. We’re passionate about helping change the status quo in our healthcare system today, and we believe we’re positioned to help drive the substantial and sustainable changes that are needed.”

For many health systems, the potential for much-needed supply chain savings remains untapped. Even for those that are making great strides in reducing supply chain spend, Prodigo can offer an additional 10 percent savings in their annual supply chain budget, which could translate to tens of millions of dollars of savings per year.

Prodigo increases contract utilization by driving compliance through an advanced platform of process, people and technology. Savings generated by Prodigo are a result of more precise contract compliance, the elimination of over-payment for off-contract purchases and better-informed decision-making. With Prodigo, the requestor, buyer and approver have standardized and complete knowledge of purchase decisions.

Mayernik and the other leaders of Alliance Healthcare Partners are healthcare industry veterans with experience leading healthcare companies with value propositions similar to Prodigo’s. The management team can leverage its industry background and network to expand the positive impact Prodigo is having on healthcare providers today.

Prodigo was created in 2008 by UPMC, a $12 billion integrated healthcare provider and payor, to address contract compliance, automation, data quality and user experience issues. Thanks to the proven model established at UPMC in Pittsburgh, Prodigo’s solutions are currently in use by over a dozen leading healthcare systems across the U.S., including four of the top 15 US News & World Report Honor Roll hospitals. Prodigo’s leadership team will continue to access one of the largest integrated delivery and finance systems in healthcare today as a laboratory, to prove the success of Prodigo’s offerings in a living, breathing healthcare supply chain that operates across a full continuum of care.

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