Prioritizing Purchased Services | E.25
Why you should prioritize purchased services and the difference it can make for your hospital or healthcare system.
Episode Introduction
In Episode 25 of The Healthcare Leadership Experience, Lisa is joined by Rich Dormer from VIE Healthcare to discuss why prioritizing purchased services is essential for every hospital.
As Lisa comments: ‘’If you think about… inflation … hospitals need to be proactively prioritizing purchased services…because you're going to see the impact of inflation on purchased services spend.’’
This episode is sponsored by VIE Healthcare Consulting® which has proudly helped hospitals save $772 million since 1999.
In today’s episode you’ll hear:
Why healthcare needs to prioritize purchased services more than ever. Hint: the more complex something is, the greater the opportunity for cost savings.
Three challenges in analyzing purchased services spend:
- The line item detail trapped in the invoices.
- Understanding the terms of complex contracts.
- How relationships with vendors affect hospital negotiations. ‘’A lot of times hospitals work side by side with representatives from vendor partners … it’s difficult to question, negotiate or push back on certain things on a contract.’’
Why every hospital needs to be ahead of the curve when it comes to inflation.
Why you need to implement the following steps before benchmarking:
- Categorize the vendor services
- Compare invoice details to contracts (Hint: This is a big step that a lot of people miss)
- Don’t overlook end user conversations, ‘’They’re the ones that are living it day-by-day… they know all the little issues that are happening … which you wouldn’t see in the data.’’
Three essential modern purchased services strategies that CFOs need to consider right now.
The top two areas of focus for purchased services cost reduction in 2022 – and why financial clauses are problematic for hospitals. ‘….. even clauses that say, "We won't sell to your competitors, but we’re going to charge you several hundred thousand dollars a year not to….what happens is it gets embedded in the contract.’’
Why ratio benchmarking is bad advice when it comes to purchased services cost savings.
For more on purchased services, listen again to Episode 3 of The Healthcare Leadership Experience.
Connect with Lisa:
📧 lmiller@viehealthcare.com