Corporate M&A

A leading US health system faced significant challenges in optimizing its supply chain following multiple mergers and acquisitions, which expanded its operations to dozens of hospitals and hundreds of clinics across several states. The Chief Supply Chain Officer recognized the need for a comprehensive transformation to streamline processes, revamp organizational structures, and enhance the operating model to support cost savings and improved patient service levels. To address these challenges, the health system engaged Ernst & Young LLP (EY US) for their expertise in supply chain management. EY US conducted a thorough assessment of the health system's procurement operations, identifying opportunities for greater efficiencies and a clearer organizational structure. They developed a 10-year growth roadmap that included end-to-end process maps, key performance indicators (KPIs), and a productivity matrix to optimize the procurement team. Additionally, EY facilitated expert panels to create a technology enablement roadmap, ensuring that technology would support the procurement process and empower caregivers with data-driven decision-making capabilities. In the area of linen and laundry , EY implemented a centralized linen-management software platform, which improved tracking and utilization of laundry across hospitals. This initiative not only streamlined operations but also identified over $250,000 in sourcing savings, ultimately leading to more than $5 million in total savings for the health system. For courier , EY optimized transportation routes, which resulted in a reduction of over 100 hours driven per day and saved approximately $4 million through insourcing and route optimization. Furthermore, EY developed a regional micro-hub model for distribution and logistics, which consolidated inventory and aligned transportation functions, yielding an estimated net present value of over $50 million over three to five years. Overall, the supply chain transformation led to projected cost savings of $80 million over five years, enhancing the health system's ability to scale for future growth. This transformation not only improved operational efficiency but also positioned the health system to deliver higher-quality care and enhance the patient experience, ultimately benefiting over two million patients. The collaborative efforts between EY and the health system exemplified a commitment to continuous improvement and operational excellence in the healthcare industry.

Successfully completed $5M transaction

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