The Cook County Health and Hospitals System aims to save $500,000 a year by buying supplies in bulk rates.
A contract with U.S. Food Service, a group purchaser, cuts the county’s food contracts from 11 to one, says spokesman Lucio Guerrero. The deal, announced this week, is part of broader cost-cutting measures at the health system in recent months.
"This is just one part of the substantial savings we will realize," said William Foley, the health system's chief executive. "We will continue to find ways to make sure that we are wisely using taxpayer money while making sure that patient quality doesn't suffer."
While U.S. Food Service will provide food at Stroger and Oak Forest hospitals, Provident Hospital currently has its a separate food contract. Guerrero says Provident could join the food group purchasing plan in the future.
Officials say the new food contract illustrates more than just cost savings: It reduces food deliveries from 34 a week to 12, cuts paperwork by bringing invoices from 24 to five, and gives food managers the ability to track the source of spoiled or substandard products.
County officials have been trying to streamline the health system's operations by implementing group purchasing, using its own buying department and adopting new technology.
In September, the health system signed a contract with another group purchaser for medical supplies. Officials estimate that it will save more than $20 million a year.
Local medical suppliers have been critical of the deal, which they say has virtually cut them out.
But Guerrero says a third of the county’s supply contracts are put out for bid, and he defended the food deal specifically, arguing that local food distributors can still bid on contracts for baked goods, pre-packaged sandwiches and other items not covered in the contract.
Windy Citizen 