A Message from our CEO

“As we close out another decade, we are proud to report that 2019 was another successful year for Capstone Health Alliance!  We have set new standards for savings impact and have ­continued to provide best in class service to our members. We are proud of what we achieved with the support of our membership and Premier, Inc. I hope you enjoy this short video highlighting our accomplishments in 2019.”

Tim Bugg
President & CEO

2019 Highlights

4

NEW
Acute Members

140

Health
SYSTEMS

300

HOSPITAL
Members

255

NEW
Contracts Signed

$10.0B

TOTAL
Supply Spend

$55,351,154

SAVINGS AND VALUE
Impact across Capstone Membership

12%

INCREASE
Of total contracts in portfolio

42

NEW LOCAL
Agreements

460

UNIQUE
Suppliers

294

UNIQUE
Contract Categories

760+

VALUE-ADDED
Agreements in Contract Portfolio

Capstone Ranks #1 on Definitive Healthcare's Top 25 Regional Purchasing Coalitions by Member Hospitals

Capstone Is...

300 Hospitals representing more than 140 Health Systems across 23 States. We have over 37,000 licensed beds across our acute care membership.

Beyond healthcare, Capstone also represents over 25,000 non-acute and business & industry members.

Our members make up a total of $7.0 Billion of Premier Contract Spend and $10.0 Billion in total Supply Chain Spend

In 2019, our members realized a 12:1 Return on Investment.

In 2019, we welcomed 4 New Members

Our 2019 Contracting Strategy

FACILITATE
committee meetings for concise and timely communication and education.

SUPPORT
our members by serving as a trusted resource and providing unbiased financial analysis and clinical documentation.

PARTNER
with reputable suppliers to deliver not only cost savings but unsurpassed service and support to all members, regardless of size or geographic location.

EXPLORE
education opportunities, utilization trends and share best practices to help our members be more effective and efficient.

COLLABORATE
with relevant associations and industry experts to gather valuable information to guide and assist our members in their cost, quality, and outcomes improvement initiatives.

DELIVER
cost savings and value to our members by negotiating preferred pricing agreements in recognition of our aggregate spend. Members have access to a comprehensive portfolio of products and services while maintaining purchasing autonomy.

Member Collaboration

Member-led councils and committees ensure that Capstone is investing resources in projects that provide the most value to the membership.

Contracting Councils are facilitated by the Contracting team, are comprised of select members and provide direction on all contracting decisions.
  • Supply Chain Leadership Council

    Provided input and direction on strategic priorities and key initiatives.

  • Contract Oversight Council

    Provided direction on contracting strategies following the Premier contract calendar.

  • Purchased Services Oversight Council

    Developed strategies for service agreements and related initiatives.

Education Councils are facilitated by the Member Services team, are comprised of select members and provide direction on all education initiatives.
  • Capstone Education Council

    Provided input and direction for courses and content launched in the Capstone Learning Academy.

  • Capstone Leadership Institute Council

    Formed in 2019, CLI Council provided direction on the development of the Capstone Leadership Institute including content creation, course structure and subject matter experts.

In addition to the councils, the contracting team led various service line Member-Driven Committees that convene on a regular basis for contract updates and educational sessions. All members are invited and encouraged to have one or multiple participants at the committee meetings.
The Committee reviewed new contract opportunities for various categories in 2019, including drug eluting stents, gastrointestinal endoscopy products, biological mesh, patient beds, and exam gloves. The Committee also highlighted members in various regions to encourage member networking and engagement.
Committee members were provided with contract updates in a variety of categories including bone products, instrument containers, capital equipment, surgical instrument and scope repair. Committee members were also provided Continuing Education on topics including flexible endoscopes and surgical smoke.
The Committee shared best practices, sought input from fellow Capstone members and were provided education from industry leading suppliers.  Contract updates covered categories including hygiene technology, mesh, skin grafting and waste management for controlled substances.

The focus for 2019 for the lab committee was education, while the contracting process for lab agreements was managed by the Capstone Contract Oversight Council (COC) comprised of supply chain leaders. The COC reviewed potential lab agreements in twelve categories, allowing Capstone to successfully launch new agreements or enhancements with estimated savings and value exceeding $5M. In addition to our focus on providing cost savings and no-cost education for our members, Capstone worked to improve communication to the lab directors and teams by creating a newsletter for committee members that highlights completed contracts, educational sessions, and opportunities to collaborate on hot topics. The committee also met face to face during the Annual Forum for an educational session conducted by CAP to help members avoid the most common deficiencies.

The Pharmacy Committee targeted key pharmacy issues identified by our membership including regulatory, blood products, vaccines, and 503B compounding. Communication with our members included weekly email updates with the latest Capstone agreements and Premier product additions, deletions and price changes; quarterly pharmacy work group webinars, and periodic webinars to detail specific new contracts or complex communications.  The Capstone Annual Forum provided face to face peer interaction and specific Workgroup sessions.  These mechanisms help pharmacy personnel stay abreast of the rapidly changing pharmaceutical market.

Through the efforts of our member-driven Councils and Committees, Capstone was able to provide:

40

Committee and Council Meetings

255

Contract launches

10

Continuing Education Credits

30+

Supplier led education sessions

10

Group Buys

Data Services

Accurate and detailed data is critical for our members’ process of selecting appropriate products and services. To support our members, we place great emphasis on providing accurate and timely data. Capstone’s team of data analysts are unique, not only in their advanced data analytics capabilities, but in their combined healthcare experience of greater than twenty-five years.

In 2019, our Data Services team focused on providing financial impact statements for new agreements based on each member’s individual spend, as well as a view of the overall impact to our alliance. In addition, our team consistently cross referenced reports to provide financial analysis of product alternatives, as well as market basket reviews to ensure that Capstone members were accessing the correct pricing.

6

Potential Member Market Baskets

3,662

Pharmacy Impact Statements

1,185

Contract Oversight Council Impact Statements

3

Current Member Market Baskets

88

Member Scorecards

Field Services

Capstone’s field services team serves as a valuable resource to our hospital members by providing support in several areas including assistance with identified potential cost savings, price activation assistance, and price discrepancy resolution. In 2019, the field team met face to face with hospital members in Supply Chain, Pharmacy, and Lab to discuss opportunities that are specific to each member’s area of responsibility. The Field Team serves as supply chain subject matter experts and dedicated resources for the Capstone membership.

Served as lead on implementation for the following new members: Moffit Cancer Center, Consolidated Supply Chain Services, West Feliciana Hospital, and Adventist HealthCare

Conducted regular business reviews to convey contract utilization, identified savings, and estimated financial impact for new agreements.
Served as a liaison between members and vendors to ensure that accurate pricing was in place. The team informed members of new agreements and managed price activations.

Supported members by serving as a dedicated resource for our membership for all  initiatives and providing support on Premier tools and initiatives.

Member Services

Capstone Member Services provides exceptional focus to our members by identifying and implementing improvements and expansions of service programs to provide additional value to our members. We do this through 3 Core Foundations:

  • Education
  • Recognition
  • Open Feedback

Education

Launched in 2017, the Capstone Learning Academy is an online learning portal housing sustained educational topics to keep our members updated on industry trends, terms and best practices.
  • Contracting Compliance 101
  • Leadership 101: The Power of Mentoring
  • Leadership 201: Importance of your Inner Circle
  • Medical Terminology 101
  • Negotiation 101 & 201
  • Purchased Services 201
  • Terms & Conditions 101
  • Value Analysis 401
Modules Completed
1,290
New Registered Users
117
Total Registered Users by end 2019
475

As the next generation begins to take over supply chain, Capstone saw a need to Empower Future Leaders who have an interest in expanding their knowledge for the advancement of healthcare. With the help of a newly devised council of industry leaders in supply chain,  the idea to develop a leadership institute was cultivated.

Established in 2019, the Capstone Leadership Council worked on course structure, content creation, and developed the application process. The Council reviewed applications and a class of 17 Capstone members were selected to be the Capstone Leadership Institute’s Inaugural Class of 2020.

Courses began in January 2020.

Member Recognition

The engagement of our thriving membership is what continues to elevate our organization. The I Am Capstone initiative highlights the savings, value and quality members achieve through our partnership with leading suppliers.

This year 12 Member Hospitals and 14 Supplier Partners were recognized highlighting a combined total of more than $1.5M annually.

Member Feedback

2019 Annual Survey

Capstone’s Annual Membership Survey, coupled with individual and group facilitated conversations allowed us to identify not only what was working well but also to uncover opportunities for development. Many of the initiatives that Capstone implemented in 2019 were based on member feedback. Our MEMBERS shared, we listened and as a result our annual member survey reflects continued increase in member satisfaction.
2019 Overall Member Satisfaction
4.57
2018 Overall Member Satisfaction
4.54
2017 Overall Member Satisfaction
4.38

Making an Impact

Partnering with local organizations to raise awareness and support our community is a priority for the Capstone team.

Throughout the year, we have worked with the United Way of Asheville, Council on Aging, Montreat College, Coach’s Quest, Western Carolina Medical Society, the Bellwether League and our partners at the Asheville Area Chamber of Commerce, Henderson County Chamber, Greenville Chamber, and Fletcher Area Business Association.

In August, we invited our community partners to join us as we celebrated the Grand Opening of our new offices in Fletcher, NC.

As a team, Capstone invested in charitable donations and volunteer hours.

2019 Annual Forum

Each year, Capstone hosts an Annual Forum designed to Cultivate learning and education, Connect our members and business partners, and work to move the needle on healthcare costs through Collaboration.

Attendees had their minds stimulated through education sessions, networking opportunities, and world-class speakers. Our goal is for each attendee to leave with a fresh outlook and drive to make a personal impact on the future of healthcare.

2019 was our 12th Annual Forum.
We welcomed:

  • 550

    Total Attendees

  • 120

    Total Members

  • 150

    Supplier Partners

Thank You

“Thank you to our Capstone Health Alliance team whose continued unparalleled support of our members made 2019 a fantastic year!“

Tim Bugg
President & CEO