Trends in Healthcare

Episode 28 Trends in Healthcare  Image of Lisa Miller  The Healthcare Leadership Experience Radio Show with Lisa Miller

In these audiograms, taken from Episode 28 of The Healthcare Leadership Experience, Trends in Healthcare, Lisa Miller discusses trends in healthcare cost management.

Robust Contract Management Is Vital for Cost Reduction in Healthcare

The most common concerns I hear when I speak to healthcare leaders are around contract management. That might be a contract that needs reviewing or concerns about benchmarking. Vendor negotiations are another issue for hospitals. At VIE, we often act as a buffer between the hospital and vendors to preserve their relationships. It’s a smart strategic decision for healthcare leaders.

Hospitals Need To Be Aware of the Warning Signs Around Spiraling Costs

Some of these signs include expenses increasing across each department, budget predictions being off, or reduced profitability in areas including surgical cases and diagnostic tests. Another warning sign is paying a higher price for implants or physician equipment where there are only minor changes to components. In contract management red flags include vendors increasing their prices. Directors of finance are the first to notice these signs.

Health Systems Can’t Put Purchased Services Spend in a Box

Physician Preference Items (PPIs) and purchased services are two major areas of non-labor spend. There’s increased focus on purchased services cost reduction but the approach is wrong. You can’t put purchased services in a box because all the spend is in the line-item details of your invoices. Hospitals need to embrace best practice, that means going beyond categorization and ratio benchmarking. A line-item approach is a must.

GPOs don’t always offer the best pricing

Hospitals have the power to self-contract. When GPOs were established, they were intended to help hospitals get better pricing and were granted Safe Harbor protection. While GPOs can offer value where they aggregate volume, there’s a large area of spend where hospitals should be self-contracting, such as PPIs and purchased services. Implementing a self-contracting strategy is a more cost-effective option in these key areas.

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

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

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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

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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