MILFORD, Del. - Bayhealth has extended its supply chain partnership with Premier, Inc. through 2028, according to an announcement from the health system. The decision follows a yearlong collaboration that Bayhealth officials said resulted in $8 million in savings.
The health system said the extended agreement gives Premier full oversight of supply operations, including sourcing, contracting, and inventory management.
Bayhealth began working with Premier in 2023 to address internal challenges, including staffing shortages and limited access to reliable data, which were affecting supply chain performance. As part of the response, Premier embedded staff directly within Bayhealth’s system to help stabilize operations and improve oversight.
“Premier’s expertise has transformed our supply chain,” said Jon Ellsworth, vice president of supply chain at Bayhealth, in a statement. “This partnership has built a foundation for long-term efficiency and resilience.”
According to Bayhealth, the collaboration led to redesigned inventory systems across more than 65 supply locations and upgrades to a 70,000-square-foot warehouse. The health system also credited Premier with improving supply visibility, reducing waste, and enhancing demand forecasting through the use of standardized data and integrated analytics. A team of 23.5 Premier specialists supported the work, officials said.
The health system also highlighted the role of a value analysis nurse, who reviewed purchasing decisions to ensure they balanced both quality of care and cost considerations.
Officials said the renewed agreement is intended to build on early progress and help Bayhealth adapt to the ongoing demands of supply chain management in healthcare.