IT Services: Why You Need To Monitor Your Spend

Hospital IT services is a large, and growing, area of spend. It falls within hospital purchased services.

We are seeing vendors putting together pricing structures that are becoming increasingly complex.  

These structures are often based on bedside or inpatient/outpatient revenues.

This approach makes it challenging for hospitals to benchmark.

Assessing whether your hospital is getting the best price requires specific strategies:

1. It requires modelling and pattern recognition. This is extremely important.

At VIE Healthcare®, we carry out modeling so we’re able to provide benchmarking within complex pricing structures.

Partnering with a company with proven experience in carrying out this specific analysis can identify those patterns.

2. How is your hospital reconciling and validating to ensure you are getting the right price?

What happens if your bed size is reduced or volumes change?

In many cases, proposed contracts are based on projected rather than current volumes.

Pricing structures should be aligned with the capacity of your hospital.

For instance, the requirements for a 200-bed hospital will be significantly different to the requirements of a 2,000-bed health system.

Are you adjusting your IT services agreements?

Can you map and understand those agreements to ensure accuracy?

3. Your specific utilization also changes.

The number of users may change.

You may want to accurately budget for growth.

If your number of users falls, you may have been charged for months, for volumes that you aren’t utilizing.

Vendor agreements need to be flexible to allow for those changes.

At VIE Healthcare®, we help hospitals throughout the country optimize their IT services agreements.

We support areas including benchmarking, analysis, and the challenging area of vendor negotiations.

We’d love to hear about your challenges and experiences in this key area of purchased services spend.

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.

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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