2024 Partner article courtesy of Avant-garde Health

Hospital profit margins have been under significant pressure in recent years. In 2023, the median operating margin for U.S. hospitals was 0.3%, with approximately half of hospitals reporting negative margins. This financial strain underscores the necessity for hospitals to implement effective cost-reduction strategies, particularly in high-expenditure areas like spine procedures.

A leading academic medical system addressed this challenge by partnering with Avant-garde Health to reduce costs associated with spine procedures. Utilizing Avant-garde’s CareMeasurement Software, the system identified overspending on supplies, especially spine implants and osteobiologics.

The system achieved substantial savings of more than $2.7M through strategic renegotiation of supply agreements and standardization efforts.

Key Highlights:

• Savings Achieved: $2.7 million annually.
• Case Volume Impacted: More than 5,000 spine procedure cases annually.
• Scope: Renegotiation efforts targeted crucial supply agreements, focusing on high-cost areas such as spine implant pricing and osteobiologics.
• Institutional Reach: The initiative benefited multiple hospitals across the academic medical system of Beth Israel Lahey Health.
• Sustained Impact: Although the project has concluded, the benefits of the renegotiated agreements persist, ensuring ongoing cost savings for the health system without requiring additional intervention.

Schedule a Demo with Avant-garde Health

Schedule a demo with Avant-garde Health today to learn how the CareMeasurement software platform can help your hospital or health system reduce costs, maximize revenue, and improve patient care.

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*Avant-garde Health delivers advanced software that offers unparalleled detail in breaking down department and procedure data — including per unit supply costs, personnel expenses, reimbursement by payer, physician, and more.

This deep level of insight, alongside our data-driven recommendations, provides a better understanding of operations to drive real improvements in cost, revenue, and patient care.

To learn more, visit https://avantgardehealth.com/