As providers across the country manage the pandemic-inspired new normal, initiatives to make up for lost revenue opportunities are paramount to help drive financial resiliency. An area often overlooked for substantial cost savings is purchased services.
Annual purchased services spend for U.S. hospitals is estimated at more than $300 billion—comprising up to 45% of a hospital’s nonlabor operating expense. It’s an area often difficult to manage due to the complexity of unique categories, decentralized decision-making and contract management, and a lack of operational metrics.
Over the last decade, HealthTrust has built a robust portfolio of more than 260 purchased services contracts, spanning a wide range of health system functions—from landscaping and building maintenance to intraoperative neuromonitoring and parking/valet services. In more recent years, as part of our inSight Advisory Solutions, we established consulting services to help move members toward a path of cost savings. On average, this team saves our members 10% to 25% in the categories for which they provide consulting services.
To expand our offerings in this area, I’m excited to announce that over the summer, we launched Valify Solutions Group (VSG)—the first tech-enabled purchased services group purchasing organization (GPO) for healthcare. This new GPO leverages the largest data-driven market intelligence platform of more than $460 billion in total spend, categorized through proprietary machine-learning algorithms to generate benchmarking insights for its members. Valify Solutions Group is led by Chris Heckler as CEO, and the consulting arm is led by Andy Motz as AVP of Consulting.
There is no cost to join the purchased services GPO, and hospitals can selectively choose from 260+ contracts, representing more than $8 billion in spend. VSG combines Valify’s market-leading technology with HealthTrust’s best-in-class contract portfolio and advisory services to create the industry’s first end-to-end purchased services program, inclusive of sourcing, spend analytics, benchmarking, contract management, negotiations, advisory services and custom contracting.
We are excited to share this opportunity with you. Reach out to your HealthTrust Account Manager or email@example.com to start the purchased services conversation.
Publisher, The Source magazine