By referencing the same items in the second fiscal quarter (Q2) of 2001 and by using the volume from 2000, staff extended the prices for each item again for comparison. Depending upon the contract terms and other factors, some prices increased, some decreased, and some remained the same. The total cost for the same basket of goods for Q2 2001 was $1,047,742.00. This was $55,000.00 (net) or ~4.9 percent less as an aggregate value and led to an index of .951 for Q2 2001.
Methodology: Basic data collection was similar to the hospital case. In this case, the basket of goods was comprised mainly of industrial-based, manufactured products along with other packaged goods from a wide, cross-section of civic operations. However, external indices and cost driver information was gathered to benchm...
... of hospitals to a nationally managed consortium of 120 hospitals, and still continue to buy simila...