Purchased services represent on average 35 percent of the total non-labor spend in hospitals and IDNs – often higher than the amount spent on supplies. Procurement teams can achieve significant savings for their institutions by establishing a proactive approach to identifying savings in these areas. By leveraging newly available analytics solutions, these teams will uncover savings opportunities that have not been apparent in the past, increasing their scope of influence in departments that haven’t historically relied on centralized contracting.
Valify – the industry’s only automated purchased services solution – provides categorization, performance benchmarking, project tracking and contract management features that help teams proactively realize these new savings opportunities.
Opportunity
Hospitals and IDNs utilize centralized contracting for supplies, but typically rely on local decisions for a large diversity of purchased services. The lack of standardization in service offerings and the absence of part numbers prevent easy apples-to-apples comparisons across vendors. Solving these problems internally means utilizing valuable contracting professionals whose time may be better spent on RFPs, negotiations and implementations.
Valify’s automated categorization solution provides the missing visibility by categorizing 95 percent or more of an organization’s total non-labor spend in only five days and providing an intuitive view into over 1,000 purchased-service categories. Its vendor consolidation metrics and KPI category performance benchmarks identify savings opportunities, helping contracting professionals transition from digging in Excel to spending meaningful time realizing savings.
Savings projects and contract management
In busy organizations, it’s easy for projects to not realize their expected savings due to a lack of visibility and follow-through in implementation. Valify’s savings project tool auto-updates and tracks the performance of a project, and alerts users when they start trending poorly.
Procurement teams can also utilize Valify to manage their external projects and eliminate the back-and-forth over a consultant’s contingency fee by relying on accurate and transparent realized savings reporting.
The new, intuitive contract management feature helps organize contracts into appropriate categories; assists users with achieving co-terminous contracts in each category; highlights candidates for contract standardization; tracks diversity spend across the organization; and alerts the procurement team when a contract is going to expire. It’s a one-stop-shop for all of your purchased-service contract management needs.
Getting started
Hospitals and IDNs can purchase Valify as an affordable monthly subscription, and can begin working on new opportunities within days of providing data. Purchased services presents a significant opportunity for procurement teams to positively impact their organization, and Valify is the only solution on the market which enables an automated, data-driven approach to achieving these savings.
Editor’s note: sponsored by Valify