By Denise Bisogno, Business Development Manager
You’re on the healthcare hot seat:
How would you answer these questions (. . . and do you like your answers?)
- Do you have deep visibility into your annual spend data?
- How successful are your current analytics solutions for your annual spend?
- Are you capturing all cost savings opportunities across your purchased services?
Let’s talk facts:
Supply costs have grown year over year at most hospitals. It has become an unmanageable series of events that are becoming an accepted part of what will be …
On average, supply costs comprise about 10.5% of a hospital’s budget according to the American Hospital Association’s May 2 “Cost of Caring” report, citing data from Strata Decision Technology.
Understanding that up to 50% of your organization’s non-labor spend lies within your purchased services agreements and recognizing that your current manual analysis strategy yields limited and inaccurate results, it’s essential to plan a more effective re-evaluation to capture the embedded savings.
Here is the problem:
Most hospitals and health systems lack the bandwidth to conduct a thorough, granular analysis of their purchasing metrics. This process is labor-intensive and often handled by staff who may not have the expertise to know where to look, resulting in incomplete and inaccurate results. As a result, these initiatives are frequently postponed to a vague “later on when we have the time.”
Pushing off the review and/or relying on outdated methods and manual analysis is no longer sufficient. To gain a competitive advantage and meet the demands of today’s rapidly evolving healthcare environment, it’s crucial to disrupt the status quo in purchased services. Only by adopting innovative approaches and leveraging advanced tools can you achieve the accurate, instant purchasing metrics needed to drive efficiency and savings.
How can SpendMend help??
Faced with daily leadership duties, there’s often little time for labor-intensive tasks like a granular-level analysis of invoice line-item details, right? Automation, a fast-growing concept in the supply chain and purchased services arena, is worth exploring. It has proven to enhance procurement processes, optimize performance, and boost strategic buying power. This trend is here to stay, elevating finance and supply leaders with new control capabilities and significant margin improvement opportunities.
Specifically, finance and purchasing professionals are finding immediate value and improved outcomes with the patented Invoice ROI solution powered by SpendMend. This unique tool is the only automated purchasing metric solution available in the market today. Invoice ROI can deliver accurate, granular, and comprehensive results in just weeks, rather than the months or even a year that traditional methods might take.
Final Thoughts:
- If your answer to the questions posed at the beginning of this article is anything less than what you truly need to overcome roadblocks and advance with a 100% solid, targeted, and proven plan, then it’s time to rethink your approach. You need a strategy that integrates your purchased services contracts, data, and pricing to significantly boost your savings. Commit to taking bold steps and trying new ideas in your approach to cost savings.
- Develop a futuristic mindset. Consider adopting an automated, intelligent, and impactful solution to make a real difference.
- Seek out new methods in this second half of the year and start today.
In the world of healthcare… Proactive beats reactive every day, in every way, every time.
To learn how you can receive a cost savings design specific for your organization e-mail dbisogno@spendmend.com
