Cost Saving Strategy: Purchase Services Are Key to Your Cost Saving Strategy
Hospitals must include purchase services under the supply chain.
1. Gaining more visibility on line-item details:
Purchase services make up between 45-55% of a hospital's non-labor expenses.
It's majorly d…
We have the perfect solution for purchase services cost savings:
It’s called the multi-year strategy for purchase services.
Luis Martinez coins it. We’ve been talking about it for years, but he introduced me to this better wording in our recent podcast episode (liked below).
The muti-year strate…
Invoice reconciliation is crucial for purchased services cost management.
When clients come to us to have their contracts reviewed and analyzed, I ask them for 12 months invoice.
They are often surprised by this demand.
But I tell them that to do this right; we need to carry out a historical rev…
How To Renegotiate Your Contract? Contract Renegotiation - Healthcare Management
“How do I prepare for a purchased services RFP or contract negotiation?”
1. Get your 12 months’ utilization details:
If you want a mediocre result, you can do spot-checking or get the information from your…
“How do I begin identifying purchased services cost savings?”
Here are 7 strategies:
𝟏. 𝐄𝐱𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 𝐝𝐚𝐭𝐞:
If your contract is expiring in 9-12 months, you must look at it carefully.
You need to understand your needs, the marketplace, and the overall cost structure and prepare yourself accordingl…
Do I think optimizing for 1-2% is more important than innovating to make quantum leaps?
Yes and no.
When we build the discipline of drilling down and maximizing all the opportunities:
- We often end up getting 10-20%, not just 1-2%.
- We learn the art of being a specialist, rather than a general…
Here are 3 ways hospitals can tackle vendor rebates:
1. Set the right policies:
You can have a policy where your CFO or COO just doesn’t accept rebates.
You can ask for pricing on the invoice because rebates are hard to track and validate and require more manual work.
2. Make it a culture:
For many OR leaders, cost control is a strategic priority. The Operating Room accounts for up to 70% of a hospital’s revenue, between 55% to 65% of its margins, and 50% of a hospital’s costs – which makes the OR a foundational part of the financial success of a hospital.
With the loss of elective …
Here are 3 things hospitals can do to solve their cost savings problem on their own:
1. Thoroughly review your contracts and costs.
Be committed to reviewing your top dollar to bottom dollar and everything in between.
Even if you just renegotiated a contract or had something go through value ana…
Vendors can reintroduce the same product with minor enhancements to justify 20-30% price increase.
Here’s how hospitals can stay ahead of it:
1. Put it in your contracts that similar items must be priced at the same price as before.
2. Set up a value analysis process for new entrants to stop man…
In this episode, Lisa Miller and Rich Dormer from VIE Healthcare Consulting are joined by John Reese, Senior Director of Health Solution at FTI Consulting.
John has a wide range of experience with a focus on supply chain and expense reduction initiatives including pharmaceutical, IT, and other pur…
In this episode, Lisa is joined by Jacqueline Oberst, Business Intelligence Officer and Telecommunication & IT expert at VIE Healthcare.
Jacquelin has worked with hospitals for over twenty years to help them effectively reduce their costs and she is the Author of The Total Telecom Management for H…
Multi-year Purchased Services Strategy | Purchased Services Categorization - VIE Healthcare
Healthcare Supply Chain Series: Purchased Services Multi-Year Strategy with Luis Martinez | Ep.13
In this episode, Lisa Miller and Rich Dormer from VIE Healthcare Consulting are joined by Luis Martinez, Vi…
Hospitals Need Flexibility With Their GPO | Group Purchasing Organization - VIE Healthcare
GPOs hurt hospitals by limiting their decision-making.
Here’s an analogy:
Supposed you buy a home through a bank.
But then the bank says that since you’ve bought the home through them, you must also get y…
Vendors use internal pricing committees to delay hospital’s pricing requests.
Here’s how to tackle them:
1. Set a deadline:
You need to keep them to a tight deadline.
It's the right thing to do because hospitals serve their communities and patients, and they must have these cost savings.
Best Way to Manage Vendor's Complex Pricing Structures - Healthcare Management
Here’s how you can tackle vendor’s complex pricing structures:
Ask for line item details for every aspect of your purchase.
You can take the complexity out by:
- putting the line item details in the contract
Here’s one of the biggest cost challenges hospitals face:
Vendors change their list price book every year.
Even if they give you a discount, your cost goes up because that list price could go up by 10%, 20%, or 30%.
That explains why you are paying $50 for something that you paid $10 for after a…
Shoutout to Project33 for helping me create these videos.
Their processes have made it very easy for me to share the things I see in the industry.
Moreover, they’ve pushed me out of my comfort zone to share more about my personal life and what’s happening at VIE.
It’s important because it helps …
Your Cost Savings Cycle Should be In 12 Weeks Sprints - Hospital Cost Savings Project Management
You can learn about Hospital cost savings project management please click: https://www.thehealthcareleadershipexperience.com/
The video is showing Hospital cost savings project management informati…
Optimization is more important than innovation.
It allows us to dig deep into an area and become a subject matter expert.
We can see the nuances and pinpoint opportunities that we wouldn't see if we just said:
“This project is done. Let’s move on.”
In my experience, it's the optimi…
Why Your Benchmarking Needs To Be Smart? Healthcare Finance - Healthcare Finance
To learn more about Why your benchmarking needs to be SMART, PLEASE click: https://www.thehealthcareleadershipexperience.com/
The video is showing Why your benchmarking needs to be SMART information but also try to co…
Here are 6 ways hospital vendors are going to increase their margins:
1. Changing their list price book every year:
Their 2021 list price book will look very different from their 2016 list price book for the same items.
2. Having internal pricing committees:
They are going to use it against yo…
Price transparency in the marketplace can become a competitive advantage for hospitals.
If you want to discover more about Hospital Price Transparency you need to check out: https://www.thehealthcareleadershipexperience.com/
The video is presenting Hospital Price Transparency but also try to c…
find out more about hospital cost savings, PLEASE click: https://www.thehealthcareleadershipexperience.com/
This video is presenting hospital cost savings but also try to cover the following subject:
-Healthcare cost savings
-How to Find 15% or More in Cost Saving Opportunities
-Cost Saving Op…