For Immediate Release
PITTSBURGH, November 2016 — Hospital Administrators know supply chain costs are the second-largest — and fastest growing — expense behind labor costs for health care providers, representing 40 to 45 percent of operating expenses. In today’s dynamic environment, providers face mounting pressure to improve the effectiveness of patient care while controlling costs. Increasingly, providers seek to understand their costs at a patient-specific level to succeed under performance-based payment systems. Yet today, few can derive such insights.
To provide a unique solution for providers facing these pressures, Pensiamo, The Cognitive Supply Chain Company was formed. Pensiamo will provide data-driven insights through supply chain operational expertise and the application of cognitive analytics.
“At a time when patients are demanding higher quality and value, traditional approaches to providing health care supply chain services are no longer sufficient,” said Jim Szilagy, chief executive officer at Pensiamo.
“The new company call upon the best of UPMC’s health care supply chain experience and leadership’s expertise in non-medical procurement services. Pensiamo offers providers a supply chain management approach tailored to each institution’s specialties, patient population and other unique needs, and which will learn and respond over time to the changing needs of the business.”
Photo of Pensiamo Sign
Szilagy transitioned from his role as chief supply chain officer for UPMC to President and CEO of Pensiamo and is in the process of building the Pensiamo team. He is known in the industry for creating one of the nation’s most efficient and effective health care supply chains at UPMC, regularly recognized among Gartner’s annual list of top 25 health care supply chain organizations.
Moving beyond the efficiencies of today’s group purchasing organizations Pensiamo will unlock new insights from the volumes of available data on all manner of medical products and treatments used by doctors, other clinicians and patients, and drive better decisions across the purchasing process.
UPMC and Szilagy have a history of success improving the efficiency of health care operations, including dramatically lowering the cost and improving the performance of UPMC’s own data infrastructure. At the same time, UPMC has developed a number of successful supply chain ventures that also serve outside customers, including Prodigo Solutions, Health Care Pharmacy Central and BioTronics, all part of the health system’s strategy of commercializing innovation.
Pensiamo, an independent company formed by UPMC in collaboration with IBM, offers comprehensive source-to-pay managed services for health care clients using cognitive analytics in order to drive significant savings. By applying Pensiamo’s procurement processes, technologies and deep health care market experience, Pensiamo’s approach will enable rapid transformation of supply chain organizations, regardless of their current state of maturity.