Healthcare Supply Chain Series: Purchased Services Multi-Year Strategy with Luis Martinez | E.13
The first episode in the Hospital Supply Chain Series.
In this episode, Lisa Miller and Rich Dormer from VIE Healthcare Consulting are joined by Luis Martinez, Vice President of Supply Chain at Cornerstone Healthcare Group.
Over the last five years, Luis manages and oversees the supply chain for eighteen hospitals across six states.
Luis shared his thoughts on today’s challenges with purchased services:
“I think one of the biggest challenges going from today and 18 months ago is that we put a lot of things off. And now you have to pick them back up and you have to pick up some of your 2021 initiatives. So if you think about purchased services, the end date didn’t change because of the pandemic, the contract still expires in 2021. If you did push the 2020 renewals out one year, now you have a higher value that you’re having to negotiate or manage.”
Today’s episode is sponsored by Invoice ROI™, the only patented purchased services and indirect spend technology to manage, monitor and benchmark line item details.
In this episode we discuss topics on the hospital supply chain:
- How purchased services are unique
- Purchased services are negotiated every three or five years, depending on the cycle, and so it’s less transactional. However, there is also more risk associated because you’re not only negotiating a line item, you’re negotiating an entire contract.
- Purchased services benchmarking
- The problem with purchased services is that there are so many variables, which means a benchmark could be misleading. It’s important to get all of the details to make sure you’re dealing with the right type of benchmark.
- Negotiating purchased services contracts
- It’s important to track the inventory and performance of the contract you just negotiated. This allows you to check on the vendor’s performance of the contract and prepare for the next contract negotiation.
- Utilizing a multi-year purchased services strategy
- Utilizing a multi-year strategy can help you when it comes time to renegotiate contracts.
- How COVID has changed the landscape
- One of the biggest challenges coming out of COVID is figuring out where you left off and where you pick up.
Connect with Luis:
📱https://www.linkedin.com/in/martinezluis/
Connect with Lisa:
📱https://www.linkedin.com/in/lisamiller/
Check out this episodes sponsor:
🖥 https://viehealthcare.com/category/invoice-roi/