It’s true for individuals as well as multi-million-dollar health systems: it pays to shop smart. Hospitals are constantly purchasing supplies and equipment to support their operations and everything from cotton swabs to x-ray machines presents an opportunity to save money. At The Audit Group, we perform comprehensive purchase analyses to drive efficiencies and deliver savings.

How does TAG analyze hospital purchasing?

Purchasing boils down to three components: frequency, size, and price. Our team analyzes your system’s purchasing needs over time to identify areas where one or more of these can create savings. Here’s an example of how changing an item’s default unit of measure from ‘each’ to ‘case’ saved money for one of our clients.

• An item priced at $174 each, was purchased four at a time for $696
• A case of four for the same item was priced at $532
• Items were purchased on average three times per month
• Prior annual costs of $25,056 were reduced to $19,152 for a savings of $5,904!

You could also modify the frequency of your orders or bundle multiple items together to save. Let’s say there are two items you often order from the same vendor, but often not at the same time. By bundling those purchases together and shipping them at the same time, you can reduce your annual shipping charges. There’s no limit to our creativity in identifying ways to help hospitals save.

TAG’s Purchase Analysis tool, comparing the price four health systems paid for an item over time.

Our purchasing analysis is only one component of The Audit Group’s pricing review service, which provides a comprehensive snapshot of how your group manages its procurement and outlines opportunities for recovery as well as improved pricing and efficiency. Our pricing review service includes:

• Item benchmarking
• Contract analysis
• Price trend analysis
• Price optimization

What are the benefits of outsourcing purchase analysis?

Even the best purchasing departments cannot devote the resources to find every opportunity for savings. Over the past 30 years, The Audit Group has developed an in-depth knowledge of all the major healthcare vendors. We know what they offer, how they operate and where they leave room for major savings. Our process is efficient, thorough, and drives greater results than a typical in-house audit–all with no disruptions to your current workflow.

Efficient purchasing one of the most effective ways your healthcare group can improve its cash flow. Every dollar you save on an item or piece of equipment is a dollar that can improve the bottom line. The experts at The Audit Group are here to help. Reach out to us today and learn how we can simplify your purchasing process and optimize savings.