Close the door tight on these multi-million dollar purchases
Every supply chain manager contracts for purchase services during any given year, but how many are taking their purchase services seriously enough to make an impact on their healthcare organization’s bottom line? The answer to this question, if you are honest with yourself, is very few!
This seems to be the pattern in most supply chain organizations and has left a big vacuum (e.g. cost, quality and utilization) in this supply chain category of purchase. These multi-million dollar contracts are either considered the exclusive domain of your department heads and managers, or your supply chain supply chain department is mindlessly processing some or all of these contracts without giving them a second thought.
That’s why progressive supply chain organizations recognized that it is mission critical for them to manage their hospital’s contingent labor, legal services, facility management, real estate, benefits, reference lab, telecommunications, transcription services, travel, advertising, etc., where strategic savings opportunities are endless and limitless.
It is now time for all purchase services to be professionally managed by supply chain managers employing the same successful methods, processes and analytical skills that you have used to save millions for your hospital, system or IDN with supplies.
For instance, did you know that there is about a 10 percent error rate on telecommunications invoices that your hospital is paying without questioning them now? Or, that your blood product’s cost can most likely be reduced by 13, 15 or 19 percent by establishing a comprehensive blood management program?
These are just some of the savings areas that your department heads and managers haven’t explored because they have been happy with the status quo for many, many years. It’s time to put fresh eyes on these purchasing categories to wring out the last dollar in price, standardization and utilization in the range of 11 to 18 percent on tens of millions of dollars of your hospital’s spend annually.
These aren’t back of the envelope savings estimates, they are the actual savings our clients are experiencing today on their purchase services. That’s why we know that you, too, can obtain these same savings yields if, and when, you decide to close the door tight on these purchases by taking control of your purchase services. Take advantage of these new strategic savings opportunities that are under-managed, untouched and underutilized today.
Robert T. Yokl is president and chief value strategist of Strategic Value Analysis® In Healthcare, which is the acknowledged healthcare authority in value analysis and utilization management. Yokl has nearly 38 years of experience as a healthcare materials manager and supply chain consultant, and also is the co-creator of the new Utilizer® Dashboard that moves beyond price for even deeper and broader utilization savings. For more information, visit www.strategicva.com. For questions or comments, e-mail Yokl at firstname.lastname@example.org.