Backed by some of the largest health systems in the United States, this innovative new company utilizes hundreds of thousands of data points to identify and secure savings for categories not directly related to patient care
HealthTrust, a leading performance improvement company for healthcare, and Valify, a technology company focused on helping hospitals reduce purchased services expenses, today announced the launch of Valify Solutions Group (VSG), the first purchased services group purchasing organization (GPO) for healthcare. The new GPO leverages the largest data-driven market intelligence from $460 billion in categorized purchasing volume to generate savings for its members.
Powered by the industry’s leading categorization technology, Valify Solutions Group categorizes non-labor spend and compares it against a comprehensive contract portfolio to identify immediate savings opportunities. Robust algorithms benchmark the categorized data against the industry’s largest database of information from over 1,500 hospitals to help find the next level of savings opportunities for members.
“Participation from leading health systems makes Valify Solutions Group a very powerful ally in accelerating cost reduction strategies,” said Ed Jones, CEO of HealthTrust. “Based on the growing demand in managing purchased services spend, we are excited to announce the launch of a unique solution for categories that are often overlooked or challenging to address.”
There is no cost to join the purchased services GPO and hospitals can selectively choose from more than 250 contracts, representing more than $8 billion in spend. Membership is non-exclusive, allowing any hospital to participate regardless of its GPO affiliation. VSG combines Valify’s market-leading technology with HealthTrust’s best-in-class contract portfolio, and wraps around advisory services to create the industry’s first true end-to-end purchased services program, inclusive of sourcing, benchmarking, contract management, negotiations and contracting.
Annual purchased services spend for U.S. hospitals is estimated to be more than $300 billion and is difficult to manage due to the complexity of unique categories, decentralized decision-making and lack of operational metrics. Chris Heckler, CEO of Valify Solutions Group stated, “In the post-COVID era, hospitals need to aggressively identify ways to reduce costs. Whereas purchased services can comprise up to 45 percent of a hospital’s non-labor operating expense, our platform and operator expertise are designed to enable hospitals to identify millions of dollars of savings and accelerate cost improvements across hundreds of categories.”