Here are 10 things hospital leaders are often surprised to learn about purchased services:
- As a contracting area, it represents an untapped source of savings across the healthcare supply chain.
- Purchased services cover 20 to 30 percent of a hospital’s total expenses.
- 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.
- Leveraging volume with one or two suppliers can generate huge savings―for both single hospitals and multi-facility IDNs.
- 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.
- 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.
- Best pricing for purchased services is available through ServiceTrust outside of a full GPO commitment.
- 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.
- The top 10 categories of savings offered by ServiceTrust are as follows:
- ServiceTrust offers a free assessment to identify savings opportunties like these for your facility.
