healthcare purchased services

Starting Down the Path to Continually Finding Substantial Savings in Purchased Services

How do you find savings within purchased services areas that are primarily all covered by specific contracts that are running, on average, about two to three years in length? Most would strategize that if your CFO wants you to start saving money on purchased services contracts, you would just start with the most recent contracts that are coming due for renewal and the new services, software, and repairs, and scrutinize them. But does that really give you the best opportunities for big savings now? The answer is no, you are only looking at the contracts that are up for renewal or new contracts that may have little or no juice to squeeze for big savings. By taking the cyclical route of contracts, you commit yourself to taking what is coming due next instead of being more strategic in finding the big savings opportunities in all of your contracts now!

Pre-Contract Renewal/Bid Customer Survey Can Be A Real Eye Opener

One tactic that I have found invaluable in my quest to improve purchased service quality is a “Pre-Contract Renewal/Bid Customer Survey” conducted within 90 days of a contract renewal/bid. The survey would be sent to all customers and stakeholders of a renewal contract. From my experience, it can make all the difference between who you renew or bid your next contract to. It all starts with conformance to requirements!

Three Major Cost Savings Beyond Price Elements for Your Purchased Services Program

Most organizations look at purchased services only from a contract price standpoint to the value provided by the vendor. This keeps the negotiations and transactional aspects of the vendor relationship very simple in the purchased services side of supply chain. Now with group purchasing having valued contracts in the purchased services space, this only enhances the contract price savings for supply chain professionals. I guess this means our job is done with purchased services, right? Or are there still major dollars being left on the table? The answer is yes, because you can still look beyond price to save even more, and you don’t have to wait until the contract renewal process to go after these savings.

Are You in Control of Your Hospital’s Purchased Services?

It’s my guess that out of the 6,090 hospitals in the United States, 30% to 50% of them aren’t effectively controlled by their supply chain departments. This creates an opportunity to open up a whole new source of savings (equal or greater than supply expenses) for those “wait and see” supply chain executives. Isn’t it time to rethink your supply chain mission?