purchased services contracts

Hospital Purchased Services Contracts: Price Is A Moving Target

Everyone would like to obtain the best prices on their purchased services contracts, but price is a moving target. That’s because there are too many moving parts on any purchased services contract. Therefore, I’m willing to bet that very few purchased services contracts are exactly alike, thus, making it almost impossible to benchmark by traditional methods. For example, a food service contract to manage your food service department could include the following under its scope of services: Hiring your current workers, buying food, running your cafeteria, and running your coffee shop. So, how can you have an apples-to-apples comparison?

Important Lessons for Continued Results with Purchased Services Value Analysis Teams

A great way to focus your Purchased Services Cost Reduction and Sustainability Program is to utilize a value analysis team to review, analyze, and monitor your purchased services on an ongoing basis. Even though you may have some contract managers already given the responsibility to facilitate the contracting process, you can still gain high savings and overall functional value from your purchased services with a team approach. Following are some important lessons to consider when deploying a purchased services value analysis team that have been proven to work for me and my firm for the past 29 years in working with hospital purchased services.