Case Studies

Wellmont Health System

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Wellmont Health System is the premier healthcare provider serving 26 counties across Northeast Tennessee, Southwest Virginia, and Southeast Kentucky. Currently tracking $350 million in capital spend, Wellmont has 13 acute care facilities encompassing more than 1,350 inpatient beds. With three comprehensive cancer centers and two major trauma centers, Wellmont also manages 53 physician offices serving 140 physician partners. The system’s building portfolio spans approximately 1.3 million square feet.


Due to the extensive capital needs across the Wellmont system, the capital planning group faced several challenges. Wellmont lacked a defined process for validating and tracking the spend related to capital projects, as well as the ability to compare budgeted dollars to the actual amount spent. Construction and renovation projects – particularly multi-year projects – frequently exceeded budget without a clear explanation. And, with information residing in a variety of spreadsheets and databases across the system, it was difficult to have insight into where the overspending was occurring.


In 2006, Wellmont made significant changes to its supply chain and finance departments. The Supply Chain Department implemented a new materials management information system and a new capital spend management software solution, and created a new organizational structure which included the centralization of capital planning and purchasing.

Wellmont selected VFA.spendManager® for its capital spend management solution. The hosted, web-based solution provided a convenient and structured environment for all stakeholders to document, forecast and track activities related to capital expenditures with minimal implementation and training needed.


“With VFA.spendManager, we are seamlessly executing our multi-year capital projects, have complete visibility into our overall capital spending, and have gained a defined review and approval process,” added Archer.

Wellmont estimates that since their reorganization The WHS Supply Chain has implemented cost reduction projects totaling $6.5 Million in annual operational savings and with the utilization of VFA.spendManager, their Capital Management Program is realizing annual capital cost savings of over $5 million per year.

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