It’s no secret the hot spot for savings within healthcare organizations has become their extensive purchased services and outsourcing agreements. While the supply savings rock has already been turned over and squeezed for every dollar, many untapped savings are lying within an organization’s purchased services contracts. However, the biggest challenge in finding savings in purchased services is discovered as soon as the analysis begins, “…how do I even know if this is a good deal?”
What is a good deal?
Is it negotiating the lowest price? Is it acquiring the best contract terms? Is it how you compare to your peer group? Is it all of the above, which is typically referred to as the “best value”? We would argue it’s the latter, but a couple of challenges still remain. First, how do you know how you compare to your peers and if you don’t compare well, how can you better your position? Both of these questions can be answered with a good benchmarking and (re)negotiations initiative. Just because a hospital spends more money in any particular area versus its peers, it is not an indication of a poor contract. It does suggest, however, a good place to begin the hunt for potential savings. The second challenge is a bit more daunting. Most existing purchased services contracts within a healthcare organization are between 3-7 years old. With that said, the healthcare organization’s staff has probably little or no experience with the current pulse of that particular market making it difficult to assess the value of the contract. The challenges are real and expending resources to probe for savings in purchased services contracts can be time consuming and costly if an overall purchased services savings plan isn’t in place.
Seprio is designed to take a healthcare organization’s data, analyze it against peer data and industry-best practices, report opportunities and ultimately negotiate that optimal deal. In partnership with Baseline, Seprio can offer you better ways to examine your purchased services data. Would you like to see your spend broken down similar to this?
Analyze, benchmark and attack a plan of action around your non-supply spend. Do this now by contacting Seprio for your purchased services checkup.
Seprio is an industry-leading sourcing and negotiations firm securing customers best in class contracts in purchased services and technology. Seprio services a wide range of customers in diverse industries such as healthcare, insurance, financial services, big 4 consulting, manufacturing and private equity. This diverse experience allows Seprio to share unmatched market intelligence across its customer base. To get the experience you demand, the performance you expect, and proven results contact us today.