10 Surprising Facts About Purchased Services

Here are 10 things hospital leaders are often surprised to learn about purchased services:

  1. As a contracting area, it represents an untapped source of savings across the healthcare supply chain.
  2. Purchased services cover 20 to 30 percent of a hospital’s total expenses.
  3. Purchased services contracts are often overlooked because they fall outside of supply chain responsibility and are often managed by various people throughout the hospital; combining those volumes under one contract can generate savings for multiple departments.
  4. Leveraging volume with one or two suppliers can generate huge savings―for both single hospitals and multi-facility IDNs.
  5. The “typical” savings potential on purchased services ranges from 10 to 30 percent, depending on the hidden fees in existing contracts and the number of suppliers per category.
  6. Good pricing is available to small facilities with limited volume, if they have access to contracting expertise (local, regional and custom) and price benchmarking from ServiceTrust; in many cases, they won’t even have to change suppliers.
  7. Best pricing for purchased services is available through ServiceTrust outside of a full GPO commitment.
  8. ServiceTrust was developed from purchased services engagements with over 250 hospitals and 300 ambulatory surgery centers and led by a team of operators with contracting expertise in the areas of supply chain, clinical, environmental services and plant operations.
  9. The top 10 categories of savings offered by ServiceTrust are as follows:
    Savings Opportunities
  10. ServiceTrust offers a free assessment to identify savings opportunties like these for your facility.

Author Information

Christina Katamay

Christina Katamay

With 30 years of healthcare experience, Christina Katamay’s roles have included supply chain director, division director of contracting and corporate director of national contracting for 170 hospitals. She has used this experience to develop HealthTrust’s purchased services program. Katamay received her bachelor’s degree from Nova Southeastern University. More Articles by This Author »

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