Mercy's Supply Chain Awarded Again, Saves Millions

May 24, 2016

For the second time in three years, Mercy and its supply chain organization, ROi (Resource Optimization & Innovation), have received the Gartner 2016 Healthcare Supply Chainnovators Award, saving upwards of $9 million last year in surgery-related costs.

“We feel this award acknowledges the powerful impact of not only having access to real-time, comprehensive data but the collaboration that has occurred within Mercy to use data to better manage costs and improve service,” said Gene Kirtser, president and CEO of ROi. “The merging of Mercy’s world-class analytics and supply chain capabilities could not come at a better time as health care headwinds continue to blow strong.”


The 2016 Healthcare Supply Chainnovator, one of three categories, was awarded to Mercy and ROi for the development and use of a comprehensive analytics platform and enterprise performance dashboards. The analytics platform, which combines data from multiple technology sources into a single point of truth for decision-making, allows key stakeholders – including doctors and leaders from the hospital to supply chain – to see the total cost of care including labor, product selection, product cost, length of stay and inventory holding costs by procedure and compare them across the health system.

The analytics platform is being used to drive improved value creation across care pathways and capture the true cost of medical products and the impact of lower utilization.

"Companies recognized as Chainnovators have been successful with unconventional, innovative and/or high-impact approaches that peer leaders can learn from and emulate," said Mark Atwood, managing vice president at Gartner. "Supply chain leaders should look at the case studies as valuable insight for strategic planning, resource allocation and investment cycles."

Access the Gartner press release.


Mercy, named one of the top five large U.S. health systems in 2017 by Truven, an IBM Watson Health company, serves millions annually. Mercy includes 44 acute care and specialty (heart, children’s, orthopedic and rehab) hospitals, more than 700 physician practices and outpatient facilities, 40,000 co-workers and more than 2,000 Mercy Clinic physicians in Arkansas, Kansas, Missouri and Oklahoma. Mercy also has outreach ministries in Arkansas, Louisiana, Mississippi and Texas. 

ROi believes in the power of provider collaboration to transform health care. A recognized leader in supply chain management, ROi serves health care organizations across the United States that share a passion for supply chain excellence. As a provider-owned Accountable Supply Chain Organization, ROi provides a range of cost management and supply chain services, focusing on all aspects of supply chain from planning through fulfillment and consumption to ensure the highest quality of care is delivered in the most cost effective manner. ROi is the only provider to be ranked by Gartner as a top 10 health care supply chain for eight consecutive years.

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