In these audiograms, taken from Episode 24 of The Healthcare Leadership Experience, Lisa is joined by her producer, Lisa Larter to discuss how important it is to measure spend analytics in healthcare systems.
Spend analytics measures your spend every month
When you measure spend analytics you are using one of the most powerful tools available to hospitals. It looks at areas of spend including purchased services and supply chain. Does your hospital know your top 25 high cost supply items right now, or its high cost service items, by department? The question is, how are you measuring that every month? Data analytics helps hospitals to reduce costs and improve quality of care.
Why You Should Measure Spend Analytics to Reduce Hospital Admissions
The answer is in your data. The high cost of readmissions is an issue for US hospitals. For example, if your data tells you 60% of your patients are readmitted every month because they are not taking their medication correctly, you have options. That might include a telehealth coach in collaboration with pharmacy. Interpret your data wisely to guide your strategy and take corrective action.
Every hospital needs to measure spend analytics initiative
What is spend analytics? Healthcare spend analytics™ is a line item forensic analysis of your historical spend to fully optimize costs. It’s a focused initiative around all of your non-labor spend, looking at variation and trends through month to month monitoring and measuring.
Most healthcare organizations can’t get to the invoice line-item details
Purchased services spend accounts for up to 50% of your hospital’s non-labor spend. The only way to uncover hidden cost savings is by extracting the invoice details. Some hospitals rely on manual processes and Excel spreadsheets. At VIE, we use our patented technology, Invoice ROI™ to reconcile thousands of line-item details and identify errors that lead to overspend. This enables hospitals to review and measure spend analytics, evaluate contract compliance and build an RFP. It also strengthens contract negotiations and reveals trends. Management of your purchased services contracts offers the biggest cost savings opportunity for hospitals today.