HealthTrust in deal to acquire ROi

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HealthTrust in deal to acquire ROi

Thomas Dworetzky , Contributing Reporter
In supply chain news, HealthTrust has signed a definitive agreement to acquire healthcare specialist Resource Optimization & Innovation (ROi).

St. Louis-based ROi is a group purchasing organization that manages these responsibilities for Mercy Catholic health systems. After the deal closes, HealthTrust will be the sole national group purchasing organization for Mercy — as well as for other ROi members, including Orlando Health and Franciscan Missionaries of Our Lady Health System.

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“Mercy founded ROi in 2002 to manage our supply chain and we’ve watched it grow and innovate to become a highly-recognized supply chain organization,” Lynn Britton, president and chief executive officer of Mercy, and ROi’s first president and CEO, said in a statement. “As part of HealthTrust, ROi has the opportunity to accelerate its progress and strengthen its capabilities in support of Mercy, other ROi members, and HealthTrust members.”

ROi’s Custom Pack Solutions division will be set up as an independent firm owned by HealthTrust, with minority ownership held by Mercy and other ROi owners.

“We understand the needs of Catholic health systems and believe we are uniquely positioned to support them in delivering high-quality care, providing value, and honoring their mission of caring for those in need,” noted Ed Jones, president and chief executive officer of HealthTrust. “This is a unique transaction that aligns true operators and affords us an opportunity to build on ROi’s legacy of performance. I am confident it will strengthen our operator experience and provide further insights for the benefit of our respective members.”

No financial details were announced for the deal, slated to close in late summer.

U.S. hospitals are spending approximately $25.4 billion more than necessary annually on supply chains, according to an annual analysis from Navigant issued last year, costing themselves a potential savings of $2.4 billion when compared to 2017.

Those findings, based on input from 2,300 hospitals, represent a 10.2 percent increase in possible savings in an area where many providers have not accumulated the resources and leadership needed to take advantage of cost saving opportunities.

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