BLOG

May 17, 2022

Healthcare Contract Repository - TAG Inc

Why your Health System Needs a Contract Repository

Thousands of suppliers are actively utilized in every health system often managed by a limited amount of staff. That’s why organizations must create a centralized contract repository in order to properly manage their contracts and set their Supply Chain up for automation and success. What is a contract repository? A contract repository is simply a central location housing all vendor contracts a health system uses. As a core component of a successful contract management system, the repository must collect and consolidate ALL contracts including local and GPO contracts. The system containing the repository must be able to store the data […]

March 17, 2022

pharmacy procurement complexities - TAG Inc

Navigating the Complexities of Your Health System’s Pharmaceutical Procurement

The Challenges of Pharmaceutical Procurement Managing the pharmaceutical procurement process for a large health system is a complex and grueling process. Why? Because it is commonplace for these organizations to purchase from multiple manufacturers and distributors – resulting in excess of 100 accounts. With so many pharmaceutical accounts to manage, it becomes difficult to know whether health systems continue to get the correct or best price. For example, during the course of a year, a health system paid nine different prices for Astra Zeneca’s drug Symbicort ranging anywhere from $0.05 to $232. Most health systems are not equipped with the […]

April 8, 2021

Supply Chain Interview with Sean Poellnitz - TAG Inc

A Resilient and Agile Supply Chain Led by Sean Poellnitz at Mosaic Life Care

Earlier this year, TAG held a P2P Virtual Healthcare Symposium featuring key healthcare systems leaders in the procure to pay (P2P) process. While this event covered many topics, the industry faced dealing with the COVID-19 pandemic, it only touched the surface of topics regarding crisis management, procurement struggles, and leadership. We recently met up with one of our panelists, Sean Poellnitz, VP of Supply Chain at Mosaic Life Care, to take a deeper dive into some of the ideas and tactics he mentioned during the Symposium. Interview with Sean Poellnitz TAG: Throughout the symposium, you mentioned that your strategy […]

September 28, 2020

Essential Healthcare Supplier Contract Clauses - TAG Inc - The Audit Group

6 Essential Clauses to Include in Healthcare Supplier Contracts

US Healthcare supply chain overspends by $25.4B each year, equating to 30 percent of total spend in the industry. Healthcare supply chain leaders must be proactive to eliminate the causes that contribute to this overspend, starting with the first line of defense – supplier contracting. Healthcare systems must review their general agreements and additional clauses to ensure they include the information below to protect against overcharges and other causes of leaked funds. Freight Charges Freight charges must be addressed in each supplier contract to include the party responsible for paying the freight. Organizations are encouraged to negotiate freight charges to […]

August 10, 2020

Improve Supplier Relationships - TAG Inc - The Audit Group

Keys to Successful Supplier Relationships

A positive supplier relationship builds trust and loyalty – both important foundations when it comes to negotiating new contracts. Building on trust and loyalty with your suppliers can have financial reward such as: Avoid overcharges. Suppliers may be understaffed or have inefficient systems leading to charges on supplies or services higher than the agreed-upon terms. Recover and avoid duplicate payments. Duplicate payments happen in all health systems, but loyalty with suppliers can help keep them honest and return the duplicated payment before inquiring about it. Avoid charges for services not rendered. Purchased services can be complex to manage leading to […]

July 16, 2020

Top Risks of Using Blanket POs - TAG Inc - The Audit Group

Top Three Risks of Blanket Purchase Orders (POs)

Blanket purchase orders (POs) are often used to help reduce system costs, operate with only necessary inventory, and increase purchasing power. Nonetheless, blanket POs are often a source of lost funds for a healthcare system. Typically, TAG recommends limiting or eliminating the use of blanket POs because of the associated risks. We recognize, however, that some situations necessitate the use of a blanket PO. When those circumstances arise, your system should consider the following risks and implement preventative measures to reduce those risks. 1. Lack of Required Information Blanket POs often lack many of the standard controls found within traditional […]

May 27, 2020

Sourcing as a Strategic Means for Monitoring Rebates

Can a missed rebate really affect your hospital? The answer is yes! One of our clients in the northeast nearly missed out on a rebate of $250,000, the equivalent of purchasing a new ultrasound machine, covering the salaries of 3 – 4 RNs, or buying a new mammography system. This client did not have an effective tracking program costing them millions in missed rebates each year. Fortunately, the rebate was discovered and resolved during an audit of their procure-to-pay data. Ensuring all rebates are actually realized is pivotal in ensuring a healthcare system’s saving targets are met. no-repeat;left top;; auto […]