Multi-year Pact Reunites Irving GPO with Independent Hospital Network

Plano-based TPC, a network of independent, community-based hospitals in Texas, Arkansas, and Missouri, has signed an agreement with Irving-based Vizient for purchasing, supply chain, and other operational support.

Under the multi-year agreement, whose value was not disclosed, Vizient will serve as the preferred national group purchasing organization, or GPO, and strategic cost-management partner for TPC.

The agreement re-establishes a relationship between the two entities that was severed in late 2016, when TPC decided to align during 2017 with Resource Optimization & Innovation (ROi).

“The landscape evolved very quickly over the past year,” Geoff Brenner, TPC’s president and CEO, explained in a news release. “In reassessing the marketplace, we found Vizient’s significantly advanced value proposition and more fully integrated investments and competencies to be the best fit for us.”

TPC is a partnership of nine health systems located in Arkansas (Mountain Home), Missouri (Cape Girardeau), and Texas (Abilene, Midland, Odessa, San Angelo, Tyler, Victoria, and Wichita Falls). The systems represent about $1 billion in purchasing volume, and TPC has achieved more than $200 million in documented savings for them since 2010.

Vizient, which formed in 2015 from the integration of VHA, Novation, and University HealthSystem Consortium, represents a diverse membership—ranging from academic medical centers to non-acute healthcare providers—with more than $100 billion in annual purchasing volume.

“TPC will rely on Vizient as an integral strategic partner to augment its internal resources,” Taylor White, Vizient’s senior vice president, business development, told D CEO Healthcare. “Vizient will provide access to the industry’s largest GPO for comprehensive services … to enable TPC and its members to address cost management and performance improvement more strategically, and to accelerate the speed and magnitude of the financial value.”

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