Case Study

Optimizing Supply Chain Management: The Success Story of Norman Regional Health System

Key takeaways

Results:

$750,000+ in Lab Supply Chain and Strategic Sourcing Savings thus far

  • 1 Hospital | 2 Freestanding Emergency Room Facilities | 3 Urgent Care Centers
  • 326 Staffed Beds
  • Oklahoma City Metro Area

The Situation

Norman Regional Health System (NRHS) is committed to delivering personalized healthcare with compassion and excellence, making it Oklahoma’s first choice for care. As a multi-campus health system, NRHS continually seeks innovative ways to enhance operational efficiency while maintaining the highest standards of patient care. In pursuit of this goal, NRHS initially engaged with then Accumen, now hc1, to conduct a comprehensive lab operational and financial assessment. Following the success of that initial engagement, NRHS entered a partnership in June 2022 to focus on strategic supply chain management, with the agreement running through May 2025.

Working with this client has been a true partnership – they’re collaborative, open to expert input, and eager to implement cost-saving opportunities that enhance lab efficiency and patient care. Their transparency and support in projects and negotiations make them an ideal partner.

Mirjam Wit, MBA Sr. Manager of Strategic Sourcing, hc1

The Solution

The objective of this collaboration was clear: to achieve enough savings through strategic supply chain initiatives to cover the engagement costs and beyond, ensuring a financially sustainable improvement. That goal was met, demonstrating the value of hc1’s expertise in cost optimization and procurement strategies.

Over the course of the partnership, several high-impact projects have been successfully completed, including reference lab enhancement to pricing schedule and consolidation to primary reference lab, successful completion of a blood bank RFP, implementation of desired test menu changes leveraged in chemistry and microbiology for contract renegotiations, and molecular respiratory algorithm implementation applied to vendor contracting for savings.

During the initial engagement, hc1 provided subject matter expertise, review of terms and conditions, guidance on platform and vendor options, and negotiation suggestions for those projects led by NRHS to further enhance cost efficiency within their lab operations.

The teams faced challenges common in a dynamic healthcare environment. Multiple lab relocations and evolving health system priorities required flexibility and adaptability. Leadership changes added another layer of complexity, necessitating clear communication and strong collaboration. Despite these hurdles, the partnership thrived due to the shared commitment to success, strategic problem-solving, and data-driven decision-making.

Efficiency is more than just lowering costs; it is also about adding value.  Working with hc1 enabled us to transform our approach in supply chain management, ensuring that we not only delivered savings but also excellence to our customers.

Dr. Calvin L. Bohanan, DHA, MLS Administrative Director, Operations, NRHS

A critical factor in this success has been the leadership and engagement of key individuals. On the NRHS side, Calvin Bohanan, DHA, MLS, Administrative Director of Operations, Ken Dohm, Jr, MS, MLS(ASCP), Director of Clinical Lab, and Donal Harris, BSCLS, MT(ASCP), Manager of Laboratory Operations, played instrumental roles in driving these initiatives forward. On the hc1 side, Mirjam Wit, MBA, Senior Manager of Strategic Sourcing, led the efforts with a focus on efficiency, cost savings, and long-term sustainability.

The Results

Overall savings achieved over the engagement thus far are over $750,000.

As a direct result of the savings and operational improvements achieved, NRHS has agreed to extend the engagement for an additional year beyond the original term. This decision underscores the measurable value generated through the partnership and reinforces hc1’s role as a trusted strategic partner in healthcare supply chain management.

Looking Ahead

NRHS and hc1 continue to explore new opportunities for efficiency and innovation. With a shared commitment to excellence, this partnership serves as a model for how strategic collaboration can drive meaningful financial and operational improvements in healthcare.

By leveraging expertise, a proactive approach, and data-driven insights, hc1 and NRHS are well-positioned for success. NRHS will continue to sustain its mission of providing leading-edge medical services to the communities of south central Oklahoma.