Spring is the season for clearing out clutter, scrubbing away buildup, and making space for what matters—both at home and in your health system. It’s also the ideal time to clean out and optimize the overlooked areas in your health system’s operations—starting with Purchased Services.

While most health systems are vigilant about managing supply chain expenses, Purchased Services often fly under the radar. Yet this category—ranging from lab services to waste management, IT support, linen, and more—can represent up to 50% of non-labor spend. That makes it one of the biggest areas of opportunity for health systems looking to reduce costs and improve financial performance.

Why Purchased Services Need Attention

Over time, health systems accumulate hundreds (sometimes thousands) of contracts for third-party services—many of which go under-reviewed or are spread across departments and facilities. These fragmented, under-managed agreements can lead to:

• Auto-renewals without performance evaluations
• Outdated pricing and terms
• Inconsistent vendor performance across locations
• Services that are no longer needed but still being paid for
• A lack of visibility into contract terms and invoice accuracy

Even small inefficiencies across so many vendors can add up to millions in missed savings.

A Fresh Start with SpendMend’s Purchased Services Optimization

Just like a deep spring cleaning, SpendMend’s Purchased Services Optimization solution is designed to uncover what’s hiding in the margins and bring clarity to a complex spend category. But we don’t just provide insights—we partner with your team to drive meaningful change.

Here’s what sets SpendMend apart:

• In-Depth Spend Assessment: We start by gathering and analyzing your Purchased Services data across categories, vendors, and facilities to get a full picture of spend patterns and contractual obligations.
• Proprietary Healthcare Benchmarking: SpendMend uses one of the industry’s most robust healthcare datasets to benchmark across a wide array of service categories.
• Vendor & Contract Rationalization: We identify overlapping services, redundant vendors, and fragmented agreements.
• Invoice and Contract Alignment: Our experts compare invoices to contract terms to ensure you’re being billed accurately.
• Contract Lifecycle Visibility: We bring structure to contract management by identifying auto-renewals, missed review opportunities, and time-sensitive renegotiation windows.
• Technology-Driven Cost Control: Our advanced technology doesn’t just highlight price discrepancies—it reveals inefficiencies in utilization and waste, helping cut unnecessary spend and boost operational efficiency.
• Strategy-to-Execution Support: Unlike other firms, we don’t stop with a report, we support your team through implementation, vendor discussions, and change management.

Start Fresh This Spring

Don’t let overlooked contracts and unmanaged services drag down your organization’s performance. A strategic spring cleaning of your Purchased Services spend can open the door to millions in potential savings, tighter operations, and better service quality across your health system.

Let SpendMend help you clear the clutter and reclaim control with smart solutions and sustainable savings that last all year long.