Businessweek

MedAssets, Inc., a financial and performance improvement company, provides technology-enabled products and services that, together, help mitigate the financial pressures faced by hospitals, health systems, and other non-acute healthcare providers. The company’s technology-enabled solutions are delivered primarily through company-hosted software, sometimes referred to as software as a service (SaaS) or Web-based applications, supported by implementation, process improvement consulting and outsourced services, as well as enterprise-wide sales and client management support. Strategy Key elements of the company’s strategy is to deploy its research and development team, proprietary databases and industry knowledge to integrate its products and services and develop new financial and operational improvement solutions for hospitals and healthcare providers; use its client relationships, large and experienced sales and client service teams, and expanded breadth of Spend and Clinical Resource Management (SCM) and Revenue Cycle Management (RCM) capabilities to increase the penetration rate for its comprehensive suite of solutions with its existing clients; utilize its large and experienced sales team to aggressively seek new clients; deploy a client-specific solution principally through Web-based SaaS technologies; and maintain an organization of individuals who possess a work ethic and high integrity, and who are recognized for their dependability and commitment to excellence. Segments SCM This segment provides a suite of cost management services, supply chain analytics, and data capabilities that help its clients manage their high expense categories. SCM segment helps its clients manage a substantial portion of their categories through a combination of strategic sourcing and group purchasing services, services that include medical device and clinical resource consulting, as well as supply chain outsourcing and procurement services among other capabilities. In addition, the company offers business intelligence and decision support tools. Strategic Sourcing The company focuses on optimizing supply chain performance by identifying and delivering cost savings opportunities through a combination of technology and strategic contracting services to help build customized solutions encompassing the procurement of medical supplies, pharmaceuticals, food and nutrition items and capital equipment. Group Purchasing: The company operates as a healthcare group purchasing organization in the United States. The company’s national portfolio of approximately 1,800 contracts with approximately 1,150 manufacturers, distributors and other vendors provides its clients with access to a range of products and services, including medical/surgical supplies; pharmaceuticals; laboratory supplies; capital equipment; information technology; food and nutritional products; and purchased services. The company’s contract portfolio is designed to offer its healthcare provider clients with both a flexible solution consisting of multi-sourced supplier contracts, as well as a core group of pre-commitment and/or sole-sourced contracts that offer the significant discounts. The company’s multi-sourced contracts include pricing tiers based on purchase volume and multiple sources for many products and services. The company’s pre-commitment or sole-source supplier contracts require that its clients commit to a high percentage of purchase volume from the specified supplier contracts to access greater savings. Capital Equipment Services: The company offers a capital equipment contract portfolio, and can provide an assessment of equipment needs to gauge the lifespan of existing equipment, relative to service agreements, clinical utilization, technology trends and replacement/upgrade options. The company also provides technology-driven equipment planning to help clients complete their construction or remodeling project on time and under budget. Construction Services: The company offers an integrated approach to construction project planning that helps gain fiscal control of the building process. The company’s services include a front-end, detai