suppliers' stranglehold over prices.

The King Edward VII Memorial Hospital has linked up with a US group handling supplies which should mean a huge cut in the cost of materials.

In addition all the ordering will eventually be done `in-house' -- further cutting costs.

The new scheme involves the Materials Management department -- which orders everything from diapers to drugs -- and is part of a review of every hospital department to discover ways to reduce costs.

Sheila Manderson, the Bermuda Hospitals Board chief executive, said: "The major benefits of this initiative revolves around our three key performances of service, quality and cost.

"We are always looking for opportunities to improve the viability of the hospitals, to improve the quality of life for our patients and staff and to improve our services to our clients,'' said Mrs. Manderson.

Currently the BHB operates loose contracts with a variety of suppliers, giving it little control over prices because of the small quantities of supplies ordered.

According to the BHB, in some cases the hospitals were forced to accept minimum quantities imposed on them by suppliers.

Under the new scheme the BHB will join forces with the Implementation Specialists for Healthcare (ISH) Inc. which will help the hospitals order as much as they need -- at a better price.

Through ISH, the hospitals will also be able to streamline the number of suppliers used for materials needed at the hospitals.

Initially, both ISH and hospital staff will be involved in ordering supplies, but eventually it is hoped only staff will be responsible.