Founded in 2000 under the direction of health center leadership, Community Health Ventures (CHV) was created by the National Association of Community Health Centers (NACHC) to respond to the tremendous economic pressures facing health centers today. Though a combination of events, including the phasing out of cost-based reimbursement, greater numbers of managed care and uninsured patients, health centers are faced with the reality of “doing more with less”. To help health centers reduce their costs and stay competitive, CHV negotiates group-purchasing agreements to achieve better pricing, service and contractual terms for products and services health centers used daily. What is CHV? Why is CHV needed?

Through CHV’s group-purchasing agreements, health centers not only reduce their operating costs but they also exploit new and emerging models for health care business. Why should health centers consider CHV products?

To achieve competitive pricing and contract terms, CHV leverages the national health center buying strength to negotiate purchasing solutions with a select group of strategic partners. These strategic partners have a long history of success in their respective industries and have shown an eagerness to help create programs that promote the health center mission. As a result, health centers have the tools to realize savings that can then be reinvested back into patient care or innovative technologies to help strengthen management and clinical systems. How does CHV develop group-purchasing agreements?

NACHC is the only national membership organization representing all 3,500 Federally Qualified Health Centers. CHV is the business development affiliate of NACHC responsible for developing products around health center business. The Value in Purchasing (ViP) program is one of three programs developed by CHV to date. It is administered by both CHV and Healthcare Purchasing Partnership International (HPPI). Specifically, ViP is a group purchasing program for medical, dental and office supplies as well as capital equipment. HPPI is responsible for negotiating costing with manufacturers of product (i.e., Becton Dickenson, Midmark, etc.) to ensure the lowest price. In addition, Cardinal Health is responsible for both the distribution of these negotiated products and for providing world class service to health centers.

ViP: Medical Supply Program Features Savings: On average 25% Choice: Over 2,500 branded items Ordering: Online, fax and phone Delivery: One free delivery per site per week No minimum order amounts/charges No membership fees Enhance CHC Processes: Inventory control, powerful reporting, etc. Flexibility: no specific unit of measure to get price break…also, ViP will consider adding items of clinical preference to NACHC formulary NACHC: ViP supports CHC and NACHC mission and priorities

Savings Translates to Enhanced Care in Your Community With the savings a health center can achieve through the Value in Purchasing (ViP) program, health centers can enhance the level of service provided in their community. With the money saved through ViP health centers can develop pharmacy assistance programs for impoverished clients, hire additional outreach and/or administrative staff or hire clinical staff to see more patients. For example: $120,000 saved = 1 Physician FTE = 3,904 new visits per year* $65,000 saved = 1 Physician Assistant/Nurse Practitioner FTE = 2,820 new visits per year* $40,000 saved = 1 Registered Nurse FTE = 383 new visits per year* * Source: NACHC Health Center Compensation & Benefits Report , National Data America’s Health Centers Fact Sheet, 2005