Vendors’ Complex Pricing: How to Manage Them Successfully

I want to add one more topic to the conversation around healthcare vendors.

That topic is complex pricing structures.

What I mean by that is pricing structures that are:

  • Vague or don’t have specificity.
  • Pricing structures with a lot of room for errors and misinterpretation.

At VIE Healthcare®, we approach these complex pricing structures by asking for the line item details of every aspect of your spend.

Putting the line item details in the contract offers numerous benefits.

It takes the complexity out of pricing.

  • The line item details are included in the contract.
  • Hospitals can think about the ‘’what-ifs?’’ that could happen.

For instance, what if you buy or sell a hospital – what happens to the contract?

General terms and vague yet complex pricing structures don’t speak to what might happen in the future.

At VIE Healthcare®, we like the line item detail specificity and ensure our hospitals include it in their agreement.

If you can’t access that level of detail, we recommend two ways to work with Healthcare vendors:

1. Have a precise review of your monthly invoices.

You can hire a company to do this for you.

It’s imperative to capture pricing issues in real-time.

2. Carry out quarterly business reviews with your healthcare vendors.

Raise the invoice issues during those meetings so you can resolve them in that quarter.

Issues that aren’t identified quickly can go unnoticed or result in disputes that take years to resolve.

To summarize:

Complex pricing structures need to be simple and clear with full visibility around line item details.

If you can’t access that detail, implement a system to measure, monitor, and have accountability because accountability is important.

Our patented technology Invoice ROI™ delivers reconciliation, optimization, and intelligence and identifies the cost savings in your line item details in real-time.

Reach out at lmiller@viehealthcare.com to discuss your cost savings goals and how we can support and accelerate cost savings opportunities in your organization.

Lisa Miller

Lisa Miller

Lisa Miller is a consultant, speaker, and podcast host. Her consulting firm, VIE Healthcare, has provided services to over 1,000 hospitals and organizations since 1999.

Share: Vendors’ Complex Pricing: How to Manage Them Successfully

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

DOWNLOAD FREE REPORT

Discover 15 Effective Cost Savings Strategies That Most Hospitals Can Apply Right Now

Learn how these five principles can help you reduce costs immediately.

VIE Healthcare 15 Effective Cost Savings Strategies Report Cover Image

A strategy developed from analyzing over 5,000 hospitals

A simple step-by-step plan in plain language

Proven processes to organize and motivate your team to find savings

We protect your information

Recent Research Reports

Categories

Archive Search

DOWNLOAD FREE REPORT

Discover 15 Effective Cost Savings Strategies That Most Hospitals Can Apply Right Now

Learn how these five principles can help you reduce costs immediately.

VIE Healthcare 15 Effective Cost Savings Strategies Report Cover Image

A strategy developed from analyzing over 5,000 hospitals

A simple step-by-step plan in plain language

Proven processes to organize and motivate your team to find savings

We protect your information