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New contracts approach

07 Aug 2016

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A step toward achieving the OHSU Partners goal of ensuring long-term financial strength occurred in July.

Vendors for OHSU, Salem Health and Tuality will receive letters notifying them about the creation of OHSU Partners, the intent to operate as a unified health system and the agreement of a shared bottom line between OHSU and Salem Health.

Vendors are being informed that the member organizations will review pricing information for goods and services purchased by each of them and will expect that each vendor honor the lowest price it offers to any member of the unified health system to all members of the system.

Why is a letter needed?
The notice is a courtesy to our vendors.

Who does this affect?
All contracts held by OHSU, Salem Health and Tuality Healthcare for medical supplies, equipment, and services.

When will the letters be sent?
The letters will go out in two phases. The current letter is being mailed to about 140 vendors that account for about 80 percent of the money spent on medical supplies, equipment, and services. Later in July, an additional mailing is planned to the remaining vendors.

What are the financial implications?
OHSU Partners is a unified health system and its member organizations need to all be paying the same amount for the same goods and services based upon our aggregated volumes. Ultimately, aligning our contracts helps hold down costs, which benefits patients.

Please direct any inquiries regarding this change to VendorRelations@ohsupartners.org or to 503-494-8855.