Strategy

As a shareholder of Premier, Inc., a national group purchasing organization, Texas Health has access to high-quality healthcare products and services at a lower price. To responsibly manage our supply chain, we also:

• Invest in and source from local and U.S. suppliers to minimize delays caused by global supply chain issues.
• Maintain a strong financial position to keep essential materials in stock to deliver safe, quality care while keeping employees and consumers safe.
• Provide fair and equitable business opportunities to minority and women-owned business enterprises (MWOBs).
• Purchase environmentally friendly materials when feasible to keep our workplace and healing environments healthy and reduce landfill waste.
• Continuously monitor our inventory to replenish critical supplies before they are needed.

Standards and Expectations

Our suppliers must comply with laws and regulations, abide by our business practices and meet our cost, quality, safety and satisfaction standards. We evaluate their performance annually on approximately 30 criteria, including cost, quality, responsiveness and supply assurance, and steps to reduce environmental and social impacts. If improvements are needed, we will help create action plans. We may terminate a contract if we see little change in resolving issues.

Sharing Best Practices

Texas Health’s subsidiary, OnHand, powered by Texas Health Supply Chain Services, helps non-acute care providers and smaller organizations make their supply chains more efficient, affordable and reliable. Participants receive access to and benefit from Texas Health’s discounted purchasing contracts, robust materials management information system and operational expertise.

2022 Highlights

Texas Health:

• Reduced certain supply expenses by $33 million, despite inflation, when adjusted for increased surgical volumes.
• Began developing processes to assess suppliers’ environmental, social and governance (ESG) performance to develop an ESG scorecard by the end of 2023.
• Invested in local companies to expand access to supplies of saline bags, saline flush syringes and exam gloves.
• Accelerated the growth of OnHand as affiliates are finding that our contract portfolio and services typically save them 15-20% on the supplies, equipment and services they need to run their businesses.