In this previously conducted LinkedIn broadcast, Rich Dormer and I discuss the three steps to taking a data driven approach in your purchased services, the strategies for cost management of purchased services, and the application of said strategies in two case studies.
With the potential for significant margin improvement in the data analysis of purchased services spend, your strategy for cost savings opportunities starts here.
There are three steps that hospitals must ensure are being taken when looking at data analysis to achieve cost savings:
1. Understanding your spend as a whole
Ensure that you are aware of the purchased services that are coming up for renewal in the next 12-24 months. This will give you an adequate amount of time to analyze and interpret the data from the invoices to ensure you are receiving what was agreed upon.
2. Look at uncommon or overlooked areas of your purchased servicesWhen looking at your purchased services spend, address areas that are uncommon or overlooked. Read more here: Click To Tweet
Naturally, we tend to look at areas that we are most familiar with. Because those areas are reviewed often, there may be less potential for cost savings. Try looking at an area of spend that is uncomfortable for you i.e. legal expenses, facilities, clinical purchased services, etc.
3. Understanding your internal and external resources
To take a data driven approach, you need to have the ability to get to the invoice line item details for the past 12 months in your cost savings projects.
For additional context and to hear our full insights, watch the video above.
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