This research report was compiled by Lisa Miller.
Purchased services spend represents 45% to 50% of a hospital’s overall non-labor costs. For that reason alone, making a deliberate and focused effort on your hospital purchased services spend to identify cost savings opportunities is one of the best areas for hospitals and health systems to realize additional revenue.
Purchased services is the most difficult spend to manage because unlike supplies, services are performed first and invoiced after the services are performed. As a result, there is a higher need for invoice reconciliation to your agreement. In our experience at VIE Healthcare Consulting, there is a greater probability for inaccurate billing that could go unverified for a long period of time. Service spend can also have off-contract spend, excessive fees and surcharges that go unnoticed due to the time-consuming manual process of reviewing hundreds to thousands of service spend line items.
Purchased services spend is an area that requires mastery on many levels in order to achieve all the possible cost savings opportunities that are available to your hospital.
Since 1999, VIE Healthcare Consulting has successfully achieved purchased services cost savings for hospitals and health systems throughout the United States.
In this research report, we present 5 best practices that can provide your hospital with effective and proven strategies to achieve significant cost savings.