Building a Data-Driven, Clinically Integrated Supply Chain at VCU Health

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Healthcare organizations across the country continue to grapple with persistent supply chain pressures, from product shortages and ongoing costs to the need for stronger clinical alignment. For Virginia Commonwealth University (VCU) Health, these challenges were particularly complex given its role as a large academic health system.

However, in just two years, VCU Health revamped its supply chain into a data-driven, clinically integrated function aligned with industry best practices. That transformation not only stabilized day-to-day operations and delivered measurable financial impact, but it also earned VCU Health the Heartbeat of Healthcare Award for 2025.

What follows is a look back at how VCU Health, through vision, collaboration and its partnership with Premier, built a strategic supply chain intended to support patient care and drive value across the health system.

A Blueprint for Change

When David Davis stepped into the role of Vice President of Supply Chain at VCU Health in 2022, he had a clear vision: create a data-driven supply chain, then build toward clinical integration.

"We spent the first year fixing our data, getting all of our information aligned so we could become more efficient," said Davis. "Once your data is correct, you can run the right analysis, pursue more significant sourcing initiatives and align clinically with your service lines."

Premier was a key partner in this journey. Early on, VCU Health adopted a "GPO-first" mindset, pivoting away from plans for in-house sourcing to instead maximize its use of GPO contracts and resources in ways that could better realize their value.

VCU Health worked closely with its GPO partner to align initiatives with operational needs. Through GPO collaboratives and advisory groups, VCU Health participated in product discussions and shared learnings with peer health systems.

Clinician engagement was another critical component. By collaborating with surgeons and service line leaders through Premier's performance groups and value analysis processes, VCU Health completed 16 product conversions in the first year. These initiatives balanced cost savings with clinical outcomes, building trust and alignment across the health system.

Driving Measurable Impact

The results of VCU Health's supply chain evolution have been far-reaching:

• Financial Impact: Realized multi-million-dollar savings across FY24-FY25.
• Data Integrity: Improved invoice match accuracy, enabling stronger financial stewardship.
• Clinical Collaboration: Collaborative savings achieved through product standardization, particularly in orthopedics, neurosurgery and electrophysiology.
• National Recognition: VCU Health earned the 2025 Premier AscenDrive Outstanding Value Analysis Engagement Award, the 2024 Supply Chains of Distinction Award and the 2023 GHXcellence Award.
• Workforce Growth: Two major hiring events led to 140+ interviews and strengthened the pipeline of supply chain professionals. In 2024 VCU Health Supply Chain started a Supply Chain Academy for staff education, engagement and promotion opportunities.
• Supplier Diversity: Increased spend with diverse and local suppliers year-over-year.
• Resiliency: The team rebuilt systems to include pandemic stock reserves, real-time backorder monitoring and proactive substitution protocols. They also contributed to published research on mitigating blood culture bottle usage during shortages.

"What I'm most proud of is building a team that's excited to come to work every day and has the resources they need to succeed. That's what makes the supply chain strong," said Davis.

Building on the Momentum

Winning Premier's new 2025 Heartbeat of Healthcare Award has validated the progress VCU Health has made in transforming its supply chain and affirmed the impact of the team's hard work. For Davis and his team, the award is both a recognition of past accomplishments and a springboard for future innovation.

"When you are in the fight every day, dealing with shortages, backorders, even a city-wide water crisis, sometimes the team doesn't see the fruits of their labor," said Davis. "This recognition shows them that people outside of supply chain see the value of what they are doing."

VCU Health is now moving into the next phase of its supply chain journey with Premier. Current initiatives include a systemwide conversion to Premier's SURPASS portfolio and deeper collaboration with Premier's construction services team to optimize contracts for capital projects.

For VCU Health, the supply chain is no longer a back-office function. It's a strategic driver of enterprise value and high-quality patient care. Their journey demonstrates how collaboration, data and clinical integration can redefine what's possible - and how their work is truly a 'heartbeat of healthcare.'

For More:

• Explore more stories like VCU Health's by visiting our success story page, where our members share how they are tackling today's healthcare challenges.