ART - NIGP Innovations in Public Procurement - Jackson Health System 2009

The document is a submission for the 2009 NIGP Innovations in Public Procurement Award by the Procurement Management Department of the Public Health Trust/Jackson Health System in Miami, FL. The submission is about their gain sharing program, which aimed to reduce the cost of goods and services through effective competition and negotiations. The program rewarded individuals and department members involved in the procurement process by giving them a monetary performance bonus based on the documented savings. The types of savings tracked and documented include competitive market savings, alternate provider savings, level of effort savings, and cost reduction savings. The department set a minimum annual goal for competitive market savings, and if the goal was not met, the gain-sharing allocation would be reduced. The program resulted in significant savings and cost reductions, exceeding expectations. The total gain sharing payout to procurement staff was $115,925, with a maximum payout of $10,000 for any single employee. The program provided a return on investment (ROI) of 452:1. The efforts of the Procurement Management Department were specifically noted for their contribution to absorbing revenue reductions without corresponding cuts in essential programs. Their focus on cost reduction played a significant role in achieving this outcome.